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Contents

2 Our Company

4 From the desk of Adi Godrej

6 A message from Nisaba Godrej

7 In conversation with Vivek Gambhir

12 Board of Directors

18 Management Discussion & Analysis

90 Business Responsibility Report

116 Directors’ Report

160 Report on Corporate Governance

176 Standalone Financials

248 Consolidated Financials

340 Corporate Information

341 Notice of the AGM


Godrej Consumer Products is a

Our Company leading emerging markets company.


As part of the 120-year young Godrej
Group, we are fortunate to have a
proud legacy built on the strong
values of trust, integrity and respect
for others. At the same time, we
are growing fast and have exciting,
ambitious aspirations.

Today, our Group enjoys the


patronage of 1.1 billion consumers
globally, across different businesses.
In line with our 3 by 3 approach to
international expansion at Godrej
Consumer Products, we are building

2 Annual Report 2016-17


a presence in 3 emerging markets soaps in India and are the number inclusive and greener world.
(Asia, Africa, Latin America) across one player in air fresheners and wet
3 categories (home care, personal tissues in Indonesia. At the heart of all of this, is our
wash, hair care). We rank among talented team. We take much pride
the largest household insecticide For us, it is very important that in fostering an inspiring workplace,
and hair care players in emerging besides our strong financial with an agile and high performance
markets. In household insecticides, performance and innovative, much- culture. We also deeply recognise
we are the leader in India, the second loved products, we remain a good and value the diversity of our people.
largest player in Indonesia and are company. Approximately 23 per cent
expanding our footprint in Africa. We of the promoter holding in our Group
are the leader in serving the hair care is held in trusts that invest in the
needs of women of African descent, environment, health and education.
the number one player in hair colour We are also bringing together our
in India and Sub-Saharan Africa, and passion and purpose to make a
among the leading players in Latin difference through our ‘Good &
America. We rank number two in Green’ approach to create a more

Godrej Consumer Products Limited 3


From the desk of
Adi Godrej

Dear Shareholders,

I am pleased to share with you


that GCPL has delivered another
year of competitive and profitable
growth. Despite some category and
geography specific challenges,
we have done well, which is a
reflection of our clear strategic
portfolio choices, backed by strong
execution. We have also delivered
robust operating profits across
businesses, while investing in our
brands and innovations. We continue
to outperform both the FMCG
sector and the home and personal
care categories that we participate
in. Overall, this positions us well
to achieve our ambitious growth
aspirations of becoming an emerging
markets FMCG leader.
Adi Godrej
Chairman Emeritus As we look ahead, I feel confident
of strong growth in the medium to
long term. Over the last year, the
government has made several efforts
to further revive the Indian economy.
Demonetisation, while causing
challenges for a few months, has
led to a significant push towards
digital financial transactions, as well
as improving compliance. Post the
remonetisation of currency, we are
seeing a good recovery in FMCG
demand.

4 Annual Report 2016-17


“New categories and new distribution channels
will further drive penetration and increase
consumption in our focus categories”

The passage of the Goods & markets in the world and home to am grateful to our Board for their
Services Tax (GST) bill is a major around 80 per cent of the world’s thoughtful and planned approach to
achievement. As I have mentioned population. The emerging middle executing our succession plan. The
earlier, the implementation of the classes and rising per capita income foundations of GCPL are extremely
GST will be transformative for the will translate into more consumers strong. This is an opportune time to
Indian economy. A single national seeking branded, quality products transition to a new Chairperson, who
value added tax will be one of the at affordable prices. New categories will work closely with Vivek to lead the
most significant reforms since the will emerge and new distribution company in its next phase of growth.
liberalisation of the Indian economy channels will improve availability and
in 1991. I expect this to result in enhance the buying experience. This I feel very confident that Nisa will be
a marked boost to consumption will, in turn, further drive penetration an outstanding Executive Chairperson.
and GDP growth. Steps have and increase consumption in our As you know, she has been a key
also been taken to further digitise focus categories. architect of GCPL’s strategy and
and streamline the economy, transformation over the last decade. I
with initiatives such as Aadhar I would like to take this opportunity have worked closely with her and seen
linked subsidy schemes, UPI and to extend my gratitude to all our her deliver tremendous results. She
Startup India, that have improved stakeholders for their continued is an inspiring leader who will always
transparency and reduced red tape. interest, faith and encouragement uphold our values.
through the years. My deep
Globally, the macroeconomic appreciation to all our business I will continue to serve the GCPL
environment continues to be partners, vendors and other business Board and contribute in whatever way
impacted by socio-political and associates for their support and I can to GCPL’s success and long
economic uncertainty. As a result, contributions. Many thanks to all the term growth. I look forward to your
our international geographies are various central and state government continued partnership to help achieve
grappling with the dual challenges of authorities, for their continuing our exciting aspirations.
weakening growth and depreciating support to our business. To all our
currencies. Our teams are addressing team members, whose passion, Yours sincerely,
these concerns with a sharp focus on commitment and hard work, have
innovation, customer centricity and made us successful - a special
cost optimisation. thank you for building GCPL into a
company that we can all be proud of.
That said, we believe there continue
to be tremendous opportunities in It has been a privilege to serve as
emerging markets, especially in Asia, Chairman during a period when
Africa and Latin America. These are we have delivered strong results Adi Godrej
among the fastest growing consumer and transformed our company. I Chairman Emeritus

Godrej Consumer Products Limited 5


A message from
Nisaba Godrej

Dear Shareholders,

I am so honoured to be given the opportunity to


lead your wonderful company. I would like to thank
the Board for their support and confidence in me.

I promise all of you that I will serve GCPL


wholeheartedly and assure you that the values
our Chairman has taught us, combined with his
disciplined, results-driven and humble approach,
will always be the core of our DNA. The Board,
Vivek, our GCPL team and I look forward to the
continued guidance of our Chairman Emeritus as
we drive GCPL forward with deep ambition, hard
work and a strong sense of purpose.

Over the last decade, GCPL has transformed into


a global and dynamic company, with a set of team
members who consistently vote for it as one of
the best places to work. Since 2007, our market
capitalisation has increased twenty-fold, from INR
Nisaba Godrej 3,000 crore to INR 60,000 crore today. While I am
Executive Chairperson very proud of our collective achievements, I do
believe that we are only as good as what we do
next. So, let’s move forward together, with speed
and stretch dreams, and build on the wonderful
legacy we have. Our best days are yet to come.

Nisaba Godrej
Executive Chairperson

6 Annual Report 2016-17


In conversation with
Vivek Gambhir

How do you feel about GCPL’s


performance in the last year?

We delivered a resilient and reasonably good


performance last year. The environment was
challenging across most of our operating
geographies and consumer demand was sluggish.
However, we continued to outperform the market
and sustained market share across our categories.
We expanded our gross margins and operating
margins, while investing competitively to further
strengthen our brands. Our company has also
become stronger in many areas; this will enable
us to deliver a more robust performance as the
macroeconomic environment in many of our
operating geographies improves. Overall, while we
did well, we have the ambition, potential and ability
to do much better.

What were the highlights of the


performance of the India business?
Vivek Gambhir
Managing Director & CEO We adapted well to the changing dynamics in the
Indian environment. In particular, we navigated the
adverse impact of demonetisation relatively well.
We outperformed the market and delivered robust
growth in profits. Our focus on premiumisation and
cost optimisation helped ensure that our EBITDA
growth was ahead of sales growth.

We sustained or extended our market share in


our core categories. We invested competitively
in strengthening our brands. We also continued
to make our go-to-market approach more robust.
In the latter half of the year, we launched some
exciting innovations such as the range of Good
knight personal repellents, the bathroom air

Godrej Consumer Products Limited 7


freshener aer pocket, HIT Gel Stick that provides significant opportunities building strong local talent, making
and the BBLUNT Salon Secret crème for us, globally. The acquisition of the organisation more effective and
hair colour. Strength of Nature in the USA, a bringing on board capable senior
leading player in ethnic hair care, team members to support our
We are making a big push in our catapulted us to become one of the exciting plans.
journey towards building ‘Future largest players globally, serving the
Now’ capabilities, strengthening hair care needs of women of African Are you pursuing any new
go-to-market, developing alternate descent. It will, over time, also vectors of growth?
channels, investing in predictive provide a platform for us to further
analytics and increasing our digital build and drive global leadership. Our innovation approach is two-
footprint, to support our growth pronged. We believe that there is
ambitions. The integration of Strength of Nature significant headroom for growth in
is progressing well. We plan to the core categories we play in. So,
How are your Africa plans scale up our wet hair care portfolio we are building on and extending
progressing? in Sub-Saharan Africa. So, later this our leadership positions. At the
year, we will localise manufacturing same time, we are also pursuing
Establishing a strong foothold in and relaunch the Strength of Nature attractive adjacencies and creating
Africa is a key part of our strategy, products in Africa. new vectors of growth to broaden
both in terms of business size today, our portfolio. Our new products
as well as potential for the future. We are investing significantly in launched in the last 5 years account
Africa has one of the fastest growing brand building and innovation. Our for approximately 20 per cent of our
consumer markets in the world, with teams are currently doing a lot of global growth and 35 per cent of
a young population. This provides exciting work on formulating a new India’s growth.
tremendous opportunities for both brand architecture for our Darling
driving penetration and increasing brand, which is the leader in hair Take air fresheners for example,
consumption across our core extensions. Over the next year or which is a relatively new category
categories. Over time, we aspire to so, we will relaunch this as a more for us. We launched air fresheners
become one of the leading home modern, fashion-forward brand. in India in 2012. We have more than
and personal companies in several doubled this category in the last year.
geographies in Sub-Saharan Africa. We are ramping up communication We are now leaders in air fresheners
across platforms, experimenting in India and Indonesia. Air care has
Today, catering to the hair care with digital and distinctive category evolved into a fourth core category
needs of women of African descent development initiatives, making for us, globally.
contributes to almost 20 per cent of continuous improvements in our
our revenues. We intend to double supply chain, and creating a stronger In India, we are also extending into
this in the next four years. In general, employer brand, to support our hair styling products. Last year, we
this is a very underserved market plans. We are also investing a lot in forayed into hair colour in Indonesia,

8 Annual Report 2016-17


“We are making data mining and analytics a key priority and
investing in best-in-class technology and capabilities. This can
offer us a 360 degree view of trends and consumers.”

with the NYU range of crème hair pollination of insights and knowledge innovative as a company. There is
colours. We will be scaling this up across our categories and countries. also significant potential to improve
and extending our play to the larger These insights are helping us predict our productivity and become
hair care category in the country. In what our consumers want and need, more agile.
Africa, our focus will be on building a with much greater accuracy than
full hair care portfolio to complement before. We are also leveraging them GCPL has consistently
our leadership position in hair to make sharper decisions on pricing been ranked the best FMCG
extensions. We will also scale up our and optimise sales and marketing company to work for. What
presence in household insecticides spends in real-time. Through Project makes GCPL an employer of
through our Good knight brand. Optimus for example, we are driving choice?
In Latin America, along with hair the availability of a wider portfolio of
colours, we are focusing on makeup products across urban markets in Our team members are our most
and depilatories. India. We have also used advanced important asset. Being recognised
analytics to detail brand strategy play as a great place to work continues
How are you leveraging books for our key brands. to be a very important part of our
advanced analytics in your overall ambition of being a leading
business? Our supply chain teams are using multi-local FMCG player. We take
daily sales data to run advanced much pride in fostering an inclusive,
One of the big shifts we are seeing heuristics and plan for stock enabling workplace and are fully
in recent times is the convergence movements, production schedules committed to providing our team
of big data, cloud computing, and raw material purchases. We are members with exciting careers,
digital, artificial intelligence and also piloting the Internet Of Things competitive rewards and a great
mobility. This has the potential to in manufacturing and logistics to work environment. We are very
significantly transform the way we improve production line efficiencies, fortunate to be able to build on the
engage, converse with and serve manage energy costs and track the strong Godrej values and legacy of
our consumers, team members real-time movement of goods. trust, integrity and respect for others.
and partners. So, we are making At the same time, our exciting and
data mining and analytics a key On the people front, we have ambitious growth plans enable us to
priority and investing in best-in-class started using analytics to better offer unparalleled learning and career
technology and capabilities. manage our talent and leadership opportunities. Our operating model
development processes. provides a lot of empowerment and
Data from across multiple platforms allows people who perform well to
can offer us a 360 degree view While these are still early days, take on stretch roles and progress
of trends and consumers. We are we are very excited about these rapidly at GCPL.
building internal Consumer Marketing opportunities to engage our
Intelligence capabilities and setting consumers in dramatically different
up platforms to enable the cross- ways and become much more

Godrej Consumer Products Limited 9


“As we get larger and more global, we need to ensure
that the current and future generations of Godrejites fully
embrace and live our distinctive purpose and values.”

What can GCPL do to become Godrej Careers 2.0, our second What are the key priorities that
a more diverse and inclusive careers programme, offers women GCPL should focus on, going
place to work at? who have taken a career break a forward?
chance to return to the workplace. As
Becoming more inclusive is part of it, we offer challenging projects We need to become more versatile as
increasingly important for us as a with added flexibility to help women a company. We have outperformed
company. We are building diversity in returning from a sabbatical balance the market and are serving our
different ways - through the businesses their career and personal needs. consumers well with innovative,
we acquire in new geographies, the high quality products at affordable
openly inclusive stance we have on We have set ourselves clear diversity prices. We now need to take our
issues like gender and LGBT rights, goals, in terms of representation in our performance up a notch, take
and the new skills and backgrounds teams and across different levels. The bolder actions and build on our
that we are hiring for, like Design, Diversity Council for the Godrej Group strong foundations. We need to
Digital Marketing, Advanced Analytics, meets every quarter to discuss our focus on achieving higher top-line
Research & Development, and approach and track progress against growth through better innovations,
Innovation. these targets. We are confident that more compelling market initiatives
through these efforts, we will see a and stronger go-to market actions.
Attracting and developing top women changing profile of Godrejites over the Over the last couple of years, we
talent, to have a robust pipeline of next few years. have expanded our operating profit
potential leadership, is a key priority margins significantly. We need to
for us. While a lot of our team members What do you think you could sustain these margins, while investing
globally are women, we still have a lot have done better last year? in strengthening our brands and
of work to do on this front in India. We enhancing our capabilities. So, we
are making a more concerted effort While we outperformed the market need to find a way to drive both
to look for alternative approaches and sustained our market shares in top line and bottom line growth.
in areas where we have historically most of our categories, we fell short This will require us to become more
faced challenges, either because of our sales expectations for the year. ambidextrous. We need to balance
of the nature of the work involved or Certainly, the uncertainties in many of better the benefits of scale with
the availability of talent. We are also the geographies that we operate in greater agility and empowerment.
reviewing policies and infrastructure was a key contributing factor. However,
to ensure that we provide the support we need to become more resilient and We are also instilling a deeper sense
that women require to thrive at work. execute better. Most FMCG players of purpose and embedding a more
We endeavour to create an inclusive got into defensive mode last year. We consistent Godrej Way of Working
environment for women who return to should have been bolder in launching across all our operations, to better
work post an extended break through more innovations and pushing harder align, engage and energise our
multiple flexible work, part-time, and to gain market share. talented team members. We are
work from home options. fortunate to be a part of a rich 120-

10 Annual Report 2016-17


year legacy of trust, respect and our manufacturing processes and Borne Endemic Diseases) to improve
integrity. As we get larger and more supply chain. We are implementing the knowledge and awareness of
global, we need to ensure that the several initiatives to reduce specific communities through behaviour
current and future generations of energy and water consumption change campaigns and empower
Godrejites fully embrace and live our across our manufacturing locations. them to take charge of their own
distinctive purpose and values. We have also set targets for protection. In its second phase,
improvement on environmental EMBED has reached 3,000 villages,
What is GCPL doing to aspects, including achieving zero 7 lakh households and 35,00,000
promote more sustainable waste to landfill and carbon neutrality. people across 9 districts in Madhya
growth? Pradesh. It currently addresses ~36%
We are committed to ensuring of the malaria burden in Madhya
As a group, Godrej has always the sustainable sourcing of the Pradesh, a state with one of the
actively championed social raw materials that we use. Our highest burdens of malaria in India.
responsibility. We are deeply procurement policies are aligned Over time, we would like to extend
committed to driving the social to this goal. We are also working this programme to other states
progress of the communities that our closely with all our partners to drive as well.
businesses operate in. We have a sustainable practices across their
‘shared value’ approach to business operations as well. For example, all
growth and innovation. The idea is our suppliers are required to align
to link business success with social with our sustainable procurement
progress. ‘Godrej Good & Green’, policy. This policy draws from
is our vision for playing our part internationally recognised standards
in creating a more inclusive and and details our partnership
greener India. expectations around aspects like
integrity, human rights, health and
Skilling youth is high on our agenda. safety, environmental sustainability
We collaborate with non-profit and community development.
organisations and social enterprises
on employability training programmes As leaders in the household
in beauty and hair care, retail insecticides category, we are
management and channel sales committed to helping control the
for young people from low-income spread of vector borne diseases.
communities. Last year, we trained On World Malaria Day this year,
54,930 youth in India and Kenya as we announced our commitment to
part of these programmes. support a malaria-free India by 2030.
Overall, we continue to make Last year, we had launched Project
environmental sustainability key to EMBED (Elimination of Mosquito

Godrej Consumer Products Limited 11


Board of Directors

Adi Godrej Nisaba Godrej Vivek Gambhir


Chairman, Godrej Group Executive Chairperson Managing Director & CEO

Pirojsha Godrej Ndidi Nwuneli Aman Mehta


Additional Director Additional Director Independent Director

Narendra Ambwani Omkar Goswami


Independent Director Independent Director

12 Annual Report 2016-17


Board of Directors

Nadir Godrej Jamshyd N Godrej Tanya Dubash


Non-Executive Director Non-Executive Director Non-Executive Director

Bharat Doshi D Shivakumar Ireena Vittal


Independent Director Independent Director Independent Director

Godrej Consumer Products Limited 13


Management
Discussion &
Analysis
01 Overview 016

02 Our 6 Pillars

I Extending leadership in our core categories and geographies 020

II Accelerating innovation and renovation 046

III Building a future ready sales system 068

IV Making our supply chain best in class 072

V Building an agile and high performance culture 076

VI Beyond business – Good & Green 084

03 Other disclosures 086


Overview

Overview

Macroeconomic Environment FMCG Sector

Over the last year, the government has made several Though growth rates were below historical averages
efforts to revive the Indian economy. Demonetisation and long-term potential, we outperformed the
has led to a significant push towards digital financial markets in our core categories. We are seeing signs
transactions, as well as improving the tax net. Steps of recovery in consumer demand in the FMCG
have been taken to further digitise and streamline industry. While the progress has been subdued,
the economy, with initiatives such as Aadhar linked we expect demand to pick up pace in fiscal year
subsidy schemes, UPI and Startup India, which have 2018. We are hopeful that a timely and successful
improved transparency and reduced red tape. implementation of the transformative GST will spur
stronger growth for the sector. The fundamentals of
Some of our macroeconomic indicators dropped, like the industry remain strong and there is still significant
a decline in the GDP growth to 7.1 per cent in the growth potential, given the low penetration and
fiscal year 2017, from 7.6 per cent in the fiscal year consumption rates for many FMCG categories.
2016. Inflation is largely under control. The passage
of the Goods & Services Tax (GST) bill is a significant Our business has delivered strong and profitable
achievement and its implementation will have a growth, despite the macroeconomic challenges. We
positive impact on the economy. have consistently outperformed across quarters. We
are driving a relentless focus on our strategy, and
The macroeconomic environment in some of our investing strategically in creating new growth vectors
international markets remained challenging. While for the future, while continuing to drive our core to full
Indonesia saw a relatively stable GDP growth at potential, enhancing our go-to-market infrastructure
5 per cent in fiscal year 2017, growth in our Sub- and driving execution excellence.
Saharan Africa markets was weak. South Africa’s GDP
remaining largely flat year-on-year; Nigeria’s GDP
declined. Moreover, we faced challenges of currency
depreciation - particularly in Nigeria, Mozambique and
Argentina - where currency depreciated by 35-60 per
cent, along with double-digit inflation.

16 Annual Report 2016-17


Management Discussion & Analysis

GCPL has delivered a strong performance over the last 6 years

9,584 crore 1,913 crore 1,298 crore


FY 2016-17 Consolidated EBITDA 0GV2TQſV
Net Sales
FY 2010-11
3,676 crore 653 crore 482 crore

CAGR 18% 19% 18%


(without
exceptionals)

GCPL has a diverse and balanced portfolio

Category salience (FY 2016-17) Geography salience (FY 2016-17)

Others Hair Care UK Others


15% 31% 4% 1%

Air Care Latin America


7% 6% India
52%

Personal Wash Household Indonesia Africa


17% Insecticides 16% (including SON)
30%
21%

GCPL has become more international

International sales
as a percentage of
consolidated sales 34% 48%

FY 2010-11 FY 2016-17

Godrej Consumer Products Limited 17


Extending
leadership
in our core
categories
and
geographies
Extending leadership in our core categories and geographies

Source: Management estimates

India #1 household insecticides

Range of household care and personal care #1 hair colour

products - household insecticides, hair colour, #1 air fresheners


liquid detergents, soaps and air fresheners
#2 soaps

(Top) Our marketing team at the GCPL Annual Conference 2017 in Abu Dhabi
(Bottom Left) Sunil Kataria, Business Head - India & SAARC, ideating with young managers at ‘Connecting The Dots’
(Bottom Right) Our women’s team wins at the Godrej Cricket Championship

20 Annual Report 2016-17


Management Discussion & Analysis

Personal Care
Number 2 player in soaps

t Built on the high-energy t Cinthol Deostick, 3x longer


proposition of ‘alive is lasting than ordinary deodorant
awesome’, it inspires you to step sprays and gentle on skin, wins
out of the stale and embrace the ‘Best Deodorant’ at the Amazon
fresh, the new Beauty Awards 2016

t With premium international t Online campaign


fragrances and innovative #ReadyforAwesome, launched
designs, it is undoubtedly one during Olympics 2016, receives
of the most refreshing grooming over 2.7 million views
experiences across soaps,
deodorants, talcs and shower t Ranks #47 overall in the
gels Economic Times – Brand Equity
Most Trusted Brands Survey
2016

Godrej Consumer Products Limited 21


Extending leadership in our core categories and geographies

Personal Care
Number 2 player in soaps

t Leading Grade 1 quality soap in t Builds on value-added soaps


India (simply put: more soap in portfolio – launches Godrej No.1
each soap) Germ Protection soap

t Offers you ‘Nature’s way to


beauty’ with carefully chosen
ingredients to make your skin
naturally beautiful

22 Annual Report 2016-17


Management Discussion & Analysis

Our health and wellness platform

t Delightful, differentiated and t Naturally derived ingredients


efficacious range of products and unique design-led and
across the health, wellness and recyclable packaging
personal protection platforms
t Wins ‘Best Integrated Marketing
t Range comprises three hand Communications (Airlines
washes, a hand sanitiser and & Airport Category)’ at the
a personal mosquito repellent Asian Customer Engagement
spray – including India’s first Forum 2016
instant foam hand wash and
alcohol-free sanitiser with 8-hour
germ protection

Godrej Consumer Products Limited 23


Extending leadership in our core categories and geographies

Hair Care
Leader in hair colour

t India’s largest selling hair t Launches a multi-application


colour, used by over 40 million pack of Godrej Expert Rich
consumers Crème, a value offering for
frequent users
t Innovative solutions include
crème hair colour in a sachet t Hosts successful integrated
and powder hair colour with marketing campaigns, extensive
a unique gel technology, at engagement with salons, barber
unbelievably democratised training, innovative approaches
prices to media and communication

24 Annual Report 2016-17


Management Discussion & Analysis

t India’s hottest salon, now in a t B BLUNT Back to Life Dry

bottle Shampoo wins ‘The Best of


Haircare and Hairstyling’ at
t Range of shampoos, Vogue Beauty Awards 2016
conditioners, men and women’s
styling, hair extensions and t B BLUNT High Definition Curl

temporary hair colours Defining Leave-In Cream wins


‘Best for Curly Hair’ at the
t Successfully launches BBLUNT Amazon Beauty Awards 2016
Salon Secret crème hair colour

t Continues building the brand


on digital, through multi-
award winning campaigns like
#dirtylittlesecret

Godrej Consumer Products Limited 25


Extending leadership in our core categories and geographies

Home Care
Leader in household insecticides

t Good knight, the highest t Forays into the outdoor and


penetrated brand in the personal repellent category with
category in India, reaches 78 an innovative range of products:
million households Fabric Roll-On, Cool Gel and
Patches
t Good knight Fast Card, India’s
first paper-based mosquito t ‘Subah bolo Good knight’, an
repellent, continues to scale up awareness building and habit
changing campaign, wins at
t Good knight liquid vapouriser %FlES
crosses 1,000 crore; achieves
its highest ever market share t Ranks #1 in Household Care in
the Economic Times – Brand
Equity Most Trusted Brands
Survey 2016

26 Annual Report 2016-17


Management Discussion & Analysis

t Leading player in aerosols, t HIT Flying Insect Killer


focused on killing pests and integrated marketing campaigns
offering great efficacy wins 3ILVER%FlES

t Innovating ways to make our t Ranks #8 in Household Care in


products easy to use, safe the Economic Times – Brand
and affordable to help every Equity Most Trusted Brands
homemaker win the battle Survey 2016
against pests

t Launches HIT Gel Stick,


an effective and affordable
perimeter roach solution

Godrej Consumer Products Limited 27


Extending leadership in our core categories and geographies

Home Care
Number 1 player in air care

t Delightful range of home, car t Hosts successful integrated


and bathroom air fresheners marketing campaigns, extensive
engagement through innovative
t aer pocket is a leading player in media; special focus on
bathroom air fresheners, within e-commerce
10 months of launch

t Innovative gel format and


consumer engagement aids
sales and distribution ramp up

28 Annual Report 2016-17


Management Discussion & Analysis

Leader in liquid detergents

t Builds on its proposition t Ranks #9 in Fabric Care in the


of specialist care for Economic Times – Brand Equity
woollens through insightful Most Trusted Brands Survey
communication and campaigns 2016

t As part of the ‘Ezee Hugs’


initiative this winter, our team
donated woollens washed
with Ezee, to over 75,000
underprivileged school-going
children in Delhi and the NCR

Godrej Consumer Products Limited 29


Extending leadership in our core categories and geographies

Source: Management estimates

Indonesia #1 home insecticides, air


fresheners and wet wipes

Range of household and personal care #3 hair colour

products - household insecticides, air


fresheners, hair colour and wet wipes

(Top) Celebrating Serko Day, when Godrejites from across teams become salespersons for a day
(Bottom Left) Our Group Chairman, Adi Godrej, visits the Jakarta office for a town hall
(Bottom Right) Winners of Godrej Indonesia LOUD (Live Out Ur Dream), a programme which helps our team members realise their personal dreams

30 Annual Report 2016-17


Management Discussion & Analysis

HIT, the leader in household insecticides 

Stella, the number 1 player in air fresheners 

Mitu, a leading range of wet wipes and baby toiletries

NYU ranks among the top 3 brands in hair colour in modern trade

Godrej Consumer Products Limited 31


Extending leadership in our core categories and geographies

Source: Management estimates

Africa #1 ethnic hair colour (14


countries) and hair
extensions (11 countries)
Range of products across hair extensions, hair
#2 hair extensions (Nigeria)
care, hair colour, personal wash, home care and
household insecticides #2 Caucasian hair colour
(South Africa)

(Top) Our Tanzania team volunteers at a local school on Godrej Global Volunteering Day
(Bottom Left) The inauguration of a Darling Hair Academy to train young hairstylists in Kenya
(Bottom Right) Our South Africa team treats contest winner mums to free makeovers on Mother’s Day

32 Annual Report 2016-17


Management Discussion & Analysis

 Darling, the number 1 player in hair extensions across sub-Saharan Africa

MegaGrowth and TCB continue to scale up across 7 African countries

Valon helps build a presence in skin care in Eastern Africa

 Inecto, a market leader in ethnic hair care

Renew, a leading player in the Caucasian hair colour market in South Africa

Godrej Consumer Products Limited 33


Extending leadership in our core categories and geographies

Source: Management estimates

Argentina #1 hair fixing sprays

Range of products across hair colour, hair care #2 hair colour

and styling in mass and professional markets


#2 hair styling products

(Top) The opening of our new cafeteria at our Buenos Aires office
(Bottom Left) Volunteers at our Issue De Rosa campaign help raise awareness about breast cancer
(Bottom Right) Celebrating the launch of Presente, a community outreach programme

34 Annual Report 2016-17


Management Discussion & Analysis

Issue, an iconic leading hair colour, offers a fun and stylish range of hair treatments

 Roby, a market leader in hair styling

Godrej Consumer Products Limited 35


Extending leadership in our core categories and geographies

Source: Management estimates

Chile #2 hair colour

Range of products across hair colour, #2 depilatory products

depilatory products and colour cosmetics


#3 colour cosmetics

(Top) Our Chile team at their Annual Conference


(Bottom Left) Volunteers play fun games with children with special needs on Godrej Global Volunteering Day
(Bottom Right) Our trade marketing team at one of their training sessions at a popular retail chain

36 Annual Report 2016-17


Management Discussion & Analysis

Ilicit, the number one brand in hair colour

Millefiori, a leading range of depilatory products

Pamela Grant, a leading colour cosmetics and skin care player

Godrej Consumer Products Limited 37


Extending leadership in our core categories and geographies

Source: Management estimates

United Kingdom #1 stretch marks treatment

Range of products across skin care, sanitisers, #2 hand sanitisers

sun care and female deodorants


#4 sun care

(Top) Our team at the annual company offsite


(Bottom Left) Volunteers partner with Samaritan’s Purse at Christmas, to prepare shoebox gifts for children in need
(Bottom Right) Our leadership team at our office in London

38 Annual Report 2016-17


Management Discussion & Analysis

Pro:Voke Touch of Silver, a unique range of salon inspired products, for cool, platinum, white and silver hair

Pro:Voke Liquid Blonde, a new proposition to boost colour for warm, caramel and honey blondes

Cuticura, a range of anti-bacterial products for the whole family

Soft & Gentle, a refreshing range of female deodorants and feminine hygiene products

Godrej Consumer Products Limited 39


Extending leadership in our core categories and geographies

Source: Management estimates

Bangladesh, #1 household insecticides


in Nepal

Sri Lanka & Nepal #1 hair colour in Sri Lanka

powder hair colour in


Range of products across household #2 Bangladesh

insecticides, air fresheners and hair colour

(Top) The launch of Good knight, our leading Household Insecticide brand, at Colombo
(Bottom Left) Our Bangladesh team rings in the new year together
(Bottom Right) Team members from Nepal at their annual offsite

40 Annual Report 2016-17


Management Discussion & Analysis

Good knight and HIT, leaders in household insecticides in Nepal

Expert and Abha, leading players in their respective hair care segments in Bangladesh and Sri Lanka

Cross-pollinating brands like Stella (from Indonesia), across SAARC

Godrej Consumer Products Limited 41


Extending leadership in our core categories and geographies

Source: Management estimates

Middle East Leading player in the henna and


powder hair colour segments

Range of household care, hair care and Strong market position in soaps
personal care products, including soaps,
deodorant sprays, hair colour and air care

(Top) Our leadership team at an annual offsite


(Bottom Left) Our Group Chairman, Adi Godrej, visits the team at the Dubai office
(Bottom Right) Volunteers at a cleanliness drive on Godrej Global Volunteering Day

42 Annual Report 2016-17


Management Discussion & Analysis

Godrej aer, one of the UAE’s fastest growing air care brands

Cinthol, a leading player in soaps, among consumers from the Indian subcontinent

Godrej Expert, Nupur and Abha, leading players in powder hair colour

Godrej Consumer Products Limited 43


Accelerating
innovation and
renovation
Accelerating innovation and renovation

Scan me to learn
India about our new hair
colour which has been
inspired by 7 iconic
BBLUNT Salon Secret Bollywood looks

High Shine Crème Hair


Colour

t Unique 3-part hair colouring t Wide range of ammonia free


system with shine tonic for colours: Coffee, Mahogany,
salon-like hair at home Blueberry, Honey, Chocolate,
Wine and Black

46 Annual Report 2016-17


introductory offer

 199

hair colour that


makes the world go

‘you’re
shining
baby’ with
shine
tonic

available at BLUNT.COM
Accelerating innovation and renovation

Scan me to learn
India about our revolutionary
100% natural way to
keep mosquitoes away

Good knight Fabric


Roll-On

t Foray into out-of-home mosquito t 100% natural and safe for


protection children

t Innovative roll-on format, with t Provides protection for up to 8


easy 4-dot and non-staining hours
application

48 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn how


India we eliminate roaches
as they enter your
home

HIT Gel Stick

t 3x more powerful, 7-day efficacy t Unique hassle-free bristle


in single application applicator

t Distinctive transparent gel t Great value for money at 30

50 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn
India how we keep your
skin protected and
beautiful

Godrej No. 1 Germ


Protection Soap

t Extending our value added t Blend of neem, a natural germ


soaps portfolio fighter, and coconut milk for
added nourishment to your skin
t Infused with the goodness
of nature, offers the
dual proposition of beautiful and
germ protected skin

52 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn
Indonesia about our ammonia-
free hair colour with a
fruity fragrance

NYU Crème Hair Colour

t Foray into hair colour in t Super fruit extracts give your


Indonesia, specifically designed hair a pleasant fragrance,
for the Indonesian working vitamin oil makes it soft and
woman shiny

t Becomes the #3 brand in hair t Available in 5 shades: Natural


colour (modern trade) within a Black, Caramel, Copper Brown,
year of launch Burgundy and Natural Brown

t Ammonia-free, odourless
formula ensures hair is damage-
free

54 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn
Indonesia about our unique, gel-
based bathroom air
freshener

Stella pocket

t Unique slim gel technology t Range of long-lasting fragrances


cross-pollinated from our India
business

t Innovative format, clutter-


breaking design

56 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn more


Africa about our high quality
fibre braids

Yaki Braids Candy


Crush Range

t High quality fibre, market t Experiment with multiple colours


leading range of braids in the same style for a variety of
looks
t Summer collection of bold and
bright colours t Suitable for all braided styles –
corn-rows, twists and box braids
t Newly introduced ombre styles

58 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn about


Latin America our revolutionary 3D
hair colour technology

Issue 3D Gloss

t Three-dimensional technology t High reflection extracts enhance


for deeper and more visible the colour and vitality of your
shine hair

t Provides radiant, intense and


inalterable colour

60 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn
Latin America about our all day
makeup foundation

Pamela Grant All Day


Long Lasting Makeup

t Provides 24-hour colour and t Leaves skin blemish-free


moisturisation
t Available in 2 colour tones: Light
t Hypoallergenic and Medium

62 Annual Report 2016-17


Accelerating innovation and renovation

Scan me to learn about


United Kingdom our 0% aluminium dry
deodorant

Soft & Gentle


0% Aluminium Dry
Deodorant

t Offers 100% natural protection t Horsetail extract and Sage Oil


and all day freshness create a botanical complex, act
as an astringent to help close
t Spray format with 3 variants: pores and reduce bacteria flora
Active, Floral and Care on your skin

64 Annual Report 2016-17


DISCOVER A
naturally
confident you

www.softandgentle.com
Building a
future ready
sales system
Building a future ready sales system

Building a
future ready
sales system

Go-to-market Partners

t Continuing focus on driving t Enhancing channel partner


growth; optimised go-to- engagement through targeted
market strategy initiatives

t Augmenting overall reach; ~12% E-commerce


increase in direct coverage in
the last year t Establishing a strong
e-commerce presence;
t Driving availability of a wider strengthening availability and
portfolio across urban markets driving growth of premium
through Project Optimus brands

Technology

t Using best-in-class technology


and advanced analytics for
better decision-making

t Building cutting-edge sales


force capabilities through
technology-enabled learning

(Right) Our sales team members use hand held devices to facilitate decision-making

68 Annual Report 2016-17


Making our
supply chain
best in class
Making our supply chain best in class

Making our
supply chain
best in class

Best-in-class practices #IKNGHWNſNNOGPV

t Introducing best practices t Mapping cutting-edge


across geographies to become replenishment practices to
more agile: Demand-driven the Advanced Planning and
Supply Chain, Theory of Optimisation module of SAP
Constraints, Total Productive
Maintenance, Lean, Six Sigma t Responding to constantly
and Low Cost Automation changing consumer demand
patterns, leading to high
t Strengthening supply chain fill rates; now an industry
processes in international benchmark, with 95%+
businesses: integration into one customer service levels across
SAP ERP, Lean and Kaizen key geographies

t Extending shop floor employee t Improving ‘freshness’ of


engagement initiatives to products at time of sale, better
international businesses logistics practices, product
traceability and reduced
Sustainability obsolescence through the
project on bar coding shippers
t Global strategic sourcing with
significant benefits to the
bottom-line; Godrej Green Future-ready investments
Purchase Policy rolled out to key
vendors t Enhancing manufacturing
capacity, across geographies
t Sustainable manufacturing and
supply chain practices, resulting t Piloting the ‘Internet of Things’ in
in significant improvements in manufacturing and logistics
energy and water consumption,
carbon footprint, waste t Gearing up for the
generation and renewable implementation of the Goods &
energy Services Tax in India

72 Annual Report 2016-17


Management Discussion & Analysis

(Top) Our Business Partners Meet at Ho Chi Minh City


(Centre left) Open house day at our Gunung Putri factory in Indonesia
(Centre right) Our Darling factory in Mozambique
(Bottom) Inside GCPL’s largest soap manufacturing facility at Malanpur

Godrej Consumer Products Limited 73


Building an
agile and high
performance
culture
PLACEHOLDER
Building an agile and high performance culture

Building an
agile and high
performance
culture
Strengthening our employer Innovative approach to
brand across geographies recruitment

We take much pride in fostering an Godrej LOUD (Live Out Ur Dream),


inspiring workplace with an agile our radically different approach
and high performance culture to to business school recruitment,
attract, develop and retain the best encourages students to live out their
global talent. As part of the over 120- unfulfilled personal dreams and offers
year young Godrej Group, we are sponsorship and summer internships
fortunate to have a proud legacy built with Godrej. The programme has
on the strong values of trust, integrity been a great success on India and
and respect for others. At the same Indonesia campuses.
time, our exciting and ambitious
growth plans allow us to offer Strong focus on careers
unparalleled career opportunities
relatively early on in your career. 100 Leaders Programme, with
individually tailored development
Core to our employer brand, is plans, runs across geographies
the philosophy of tough love.
We expect a lot from our team Investing in leadership
members, differentiate on the basis development
of performance and potential through
career opportunities and rewards World class training programmes
and lay particular emphasis on with professors from global
developing, mentoring and training. business schools
We believe that passionate, rounded
individuals with diverse interests Leveraging social media
make for better Godrejites. And we for engagement
understand that our team members
play multi-faceted roles. This is Workplace by Facebook helps
why we encourage them, not just to engage and connect across teams
explore their whole selves, but also and geographies. We are using it
create an enabling space for them to extensively to build alignment around
do so. strategy, share ideas and insights,
get real time feedback, and celebrate
success, among many others.

76 Annual Report 2016-17


Management Discussion & Analysis

Your Canvas Tough Love Wholeself

(Top) Winners of Godrej LOUD 2017, whose dreams range from publishing a children’s novel to representing India in archery
(Bottom Left) Our Indonesia team hosts a Career & Development Week at their Jakarta office
(Bottom Right) Celebrating the launch of Workplace by Facebook, our internal engagement platform, at Chile

Godrej Consumer Products Limited 77


Building an agile and high performance culture

Build an inspiring
place to work

Rank among the Best Employers in


India in the ‘Aon Hewitt Best Employers
 survey

Rank #12 on the ‘Great Place to Work –


"EST7ORKPLACESIN!SIA list

Rank #1 in the FMCG category in


the ‘Great Place to Work – Best
Workplaces in India 2016’ list; we have
featured on this list for 13 years in a row

78 Annual Report 2016-17


Management Discussion & Analysis

(Top) We rank among the Best Employers in India in the ‘Aon Hewitt Best Employers Survey 2017’
(Centre) Winners of the Gurukul Amazing Race, our induction event for the 2017 summer intern batch in India
(Bottom) Our Bintang management trainee batch in Indonesia

Godrej Consumer Products Limited 79


Building an agile and high performance culture

Diversity
Fostering an
inclusive Godrej

We take pride in being an equal opportunities employer

“We recognise merit and perseverance and encourage diversity at Godrej. We


do not tolerate any form of discrimination on the basis of nationality, race, colour,
religion, caste, gender identity or expression, sexual orientation, disability, age or
marital status and will allow for equal opportunities for all our team members.”

We understand that our team members play multiple roles and our policies like flexi
time are designed to enable them to do so.

Godrej Resource Groups Careers 2.0

Godrej Alliance for Parents Our second careers programme


provides women who have taken a
Our team members, along with their career break, a chance to return to
partners, share experiences on child the workplace. We offer aspirational
care and work-life balance through and challenging projects across
meetings, parenting sessions and sectors and functions, with added
workshops flexibility to help them balance their
career and personal needs.
Godrej Women’s
Leadership Network

We aim to make Godrej a workplace


of choice for women and offer
mentoring, leadership development
and regular networking opportunities
through this platform

80 Annual Report 2016-17


Management Discussion & Analysis

KASHISH
TO BE UPDATED 24 MAY

(Top) Hosting celebrated feminists Mona Eltahawy, Geeta Patel, Bishakha Dutta and Paromita Vohra at our headquarters in Mumbai
(Centre) Women from across Godrej businesses share their perspectives during a panel discussion at the Godrej Leadership Forum
(Bottom) Godrej is a proud sponsor of the Kashish International Queer Film Festival 2017. Nisaba Godrej speaks at the opening of the event.

Godrej Consumer Products Limited 81


Beyond
business -
Good & Green
PLACEHOLDER
Beyond business - Good & Green

Good & Green


Our commitment towards a
more inclusive and greener world

As a Group, we have always actively championed social responsibility. We are


now exploring ways to further this commitment through shared value initiatives that
create both social and business benefits.

By 2020, we aspire to:

Ensuring Employability Greener India

Train 1 million youth in #EJKGXG\GTQYCUVGVQNCPFſNNECTDQPPGWVTCNKV[CPFCRQUKVKXG


skills that enhance their YCVGTDCNCPEGYJKNGTGFWEKPIURGEKſEGPGTI[EQPUWORVKQP
earning potential and increasing the use of renewable energy

t Collaborate with non-profit t Make environmental sustainability key to our manufacturing processes
organisations and social t Reduce energy needs, managing waste and transforming our products
enterprises on employability t Ensure our overall manufacturing approach is more future ready – from raw
training programmes for young material sourcing to technologies used at plant
people from low-income
communities Progress by our factories in improving environmental sustainability, compared to a
t Aim to improve the earning 2011 baseline, at a Group level:
potential of graduates, by
building skills and thereby
empowering them
t Offer programmes in beauty and Greener India Goal 2020 Achievement as of January 2017
hair care, retail management Become carbon neutral 51% reduction in greenhouse gas emissions
and channel sales
t Focus on life skills training, Have a positive water balance 31% reduction in specific water consumption

entrepreneurship and post- Have zero waste to landfill 60% reduction in specific waste to landfill
placement support
Reduce specific energy consumption 37% reduction in specific energy consumption
by 30%
As of March 2017, trained 1,95,101
youth in India and Kenya in skills that Increase renewable energy sources 50% of total energy consumption from
by 30% renewable resources
will enhance their earning potential

84 Annual Report 2016-17


Management Discussion & Analysis

Porter Prize for Creating Shared Value Rank on CDP India’s Climate
(2016) Disclosure Leadership Index (2016)

Elimination of Mosquito Borne Endemic Diseases (EMBED)

t Part of our commitment to help create a Malaria-free India by 2030


t Intensive community awareness and behaviour change programme to battle
malaria in regions that report high Annual Parasitic Index
t Collaboration with non-profit organisations and governments
t Addressed 36% of the malaria burden in Madhya Pradesh, a state with one of
the highest malaria burdens in India

Community Waste Management

t Piloted community waste management initiatives across 25 colleges in


Mumbai

Watershed Management

t 3,300 hectares covered in the drought prone region of Telangana, through an


integrated watershed development project

4WTCN'NGEVTKſECVKQP

t 55 villages covered as part of a rural electrification initiative; leveraging


renewable energy systems

Community Development

t Implemented a range of high-impact community development programmes


across 6 villages in and around our manufacturing facilities
t Focus on improving the quality of education, providing access to clean
water, raising awareness on health and sanitation issues, and protecting the
environment

Godrej Consumer Products Limited 85


Other disclosures

Other disclosures

Enterprise business risk t Labour shortages and attrition Internal control systems
management of key staff and their adequacy
t Exchange rate fluctuation and
With a presence across three arbitrage risk We have implemented an internal
continents - Asia, Africa and Latin t Integration risks for acquired control framework to ensure
America - we are exposed to companies that all assets are safeguarded
risks that can adversely impact t Compliance and regulatory and protected against loss from
our strategy, operations, cash pressures including changes to unauthorised use or disposition;
flow, financial performance, tax laws and transactions are authorised,
management performance and t Seasonal fluctuations recorded and reported correctly. The
overall sustainability. We have an t Political risks associated framework includes internal controls
active risk management strategy with unrest and instability in over financial reporting, which
in place. Additionally, we have countries where we have a ensures the integrity of financial
a Risk Committee, whose role is presence or operations statements of the company and
to identify potential risks, create eliminates the possibility of frauds.
mitigation strategies and monitor the The Risk Committee meets on a
occurrence of risk. The risks that may quarterly basis to review any new Our Corporate Audit & Assurance
affect us include, but are not limited, risks that may have emerged during department, which is ISO 9001:2008
to: the quarter, the status of risks as well certified, issues well documented
as mitigation plans. operating procedures and authorities,
t Economic conditions with adequate built-in controls to be
t Inflationary pressures and other Apart from domestic operations, the carried out at the beginning of any
factors affecting demand for our exercise of risk assessment is now activity and during the process, to
products getting extended to international keep track of any major changes. As
t Increasing costs of raw material, geographies. part of the audits, they also review
transport and storage the design of key processes from
t Supplier and distributor In fiscal year 2017, the Risk an adequacy of controls’ point of
relationships, and the retention Committee reviewed the top risks view. Periodic reports are generated
of distribution channels along with the mitigation plans for our to identify exceptions through data
t Competitive market conditions Darling Africa business. analysis as part of continuous
and new entrants to the market monitoring.

86 Annual Report 2016-17


Management Discussion & Analysis

The internal controls are tested for seeking branded, quality products
effectiveness, across all our locations at affordable prices. New categories
and functions by the Corporate will emerge and new distribution
Audit team, which is reviewed by channels will improve availability and
the management periodically for enhance the buying experience. This
corrective action. will, in turn, further drive penetration
and increase consumption in our
Controls with respect to authorisation focus categories.
in underlying IT systems are reviewed
periodically to ensure users have The implementation of the Goods and
access to only those transactions Service Tax will be transformative for
that their roles require. The GCPL the Indian economy and we expect
Head Office and all major factories this to result in a marked boost to
and offices across India follow an consumption and GDP growth.
Information Security Management
System, and are ISO/IEC 27001:2013 We consider compliance and
certified. regulatory pressures - including
changes to tax laws, seasonal
Opportunities and threats fluctuations and political risks
associated with unrest and instability
We believe that there are significant in countries where we have a
medium and long-term growth presence or operations - as our key
prospects in India and our other threats.
emerging markets in the rest of Asia,
South America and Africa. Today,
emerging markets account for around
80 per cent of the world’s population.

The emerging middle classes


and rising per capita income will
translate into more consumers

Godrej Consumer Products Limited 87


Business
Responsibility
Report
Philanthropic efforts of the Godrej group 090

Godrej Good & Green 090


Business
Responsibility Report

Philanthropic efforts of the income families. The Group offers the pursuit of equity in education.
Godrej Group surgery and hospitalisation to these In 2009, Teach for India began its
children free of cost. journey in classrooms with 78 Fellows
The Godrej Group has been at the (or teachers) in two cities across 34
forefront of philanthropic and social Workplace Giving schools, and reaching out to 3,000
activities for several decades. children. In fiscal year 2016-17, the
Approximately 23 per cent of the In 2016, the Group revived its movement has grown to cover 353
promoter holding in the Godrej Workplace Giving programme that schools in 7 cities, with approximately
Group is held in trusts that invest enables our team members to donate 1,100 Fellows positively impacting
in the environment, health and a specific amount every month to more than 39,500 children.
education. Through investment and our non-profit partners. We have
supervision by the trust, a large tract partnered with three organisations, Godrej Good & Green
of mangrove forests in Mumbai has namely Save the Children India,
been protected, developed, and World Wildlife Fund, and Teach for In line with our vision of Brighter
maintained for several years, and it India. The organisations have been Living for all stakeholders, we have
serves as a second set of lungs for selected after thorough research, developed a long-term vision for
the city. The Group has continually keeping in mind the vast scope creating a more inclusive and greener
supported education and supports of their efforts towards improving India. This vision has been named
the Udayachal pre-primary and education for underprivileged ‘Godrej Good & Green’ and is based
primary schools, which focus on the children, creating access to health on the shared value principle. The
all-round development of children. facilities in rural areas, and protection concept of shared value is defined
The Udayachal high school has been of the environment. The initiative as policies and operating practices
accredited with the International is a part of the Group’s tradition of that enhance the competitiveness
School Award in recognition of the philanthropy and enables our team of a company while simultaneously
school incorporating global education members to make a direct difference advancing the economic and social
into its curriculum and innovation into to someone’s life. conditions in the communities in
classroom teaching. which it operates. As part of this
Teach For India initiative, the Group aspires to create
In addition, the Group has supported a more employable Indian workforce,
initiatives in healthcare through the Since its inception in 2009, GCPL achieve a greener India, and innovate
Godrej Memorial Hospital, which has been supporting Teach for India, for good and green products by
aims to provide quality healthcare at a nationwide movement involving 2020. Specifically, our Group-level
affordable costs. One such initiative outstanding college graduates and goals for 2020 as part of this vision
is our partnership with Smile Train, young professionals, who commit two are as follows:
a US-based NGO, which helps in years to full-time teaching in under-
performing corrective cleft lip and resourced schools and become t Training 1 million rural and urban
palate surgery in children from low- lifelong leaders working towards youth for skilled employment

90 Annual Report 2016-17


Business Responsibility Report

Brighter Giving is our skill-based,


long-term volunteering programme for our
team members who are keen to engage in
meaningful volunteering projects

t Achieving zero waste to landfill, We are associated with the Integrated a structured volunteering platform
carbon neutrality, a positive water Waterahed Management programme, through which our team members
balance along with a reduction in under the Ministry of Rural can offer their time and skills to help
our specific energy consumption, Development, through our large-scale address an NGO’s needs. Through
and increase in our renewable integrated watershed projects in Brighter Giving, Godrejites can
energy portfolio drought-prone regions to restore the volunteer their time, knowledge, and
t Procuring one-third of our portfolio ecological balance by harnessing, skills to help address the specific
revenues from good and/or green conserving, and developing needs of a non-profit organisation on
products and services; those degraded natural resources, and thus a project basis.
that are environmentally superior providing sustainable livelihoods in
or address a critical social issue the region. Brighter Giving also serves as a
for consumers at the base of the channel through which our team
income pyramid In line with the Swachh Bharat members can connect with and
Mission, we have initiated several learn more about Good & Green.
We have a comprehensive CSR community waste management The programme has a long-term
policy (http://www.godrejcp.com/ projects across India by involving goal; seeking to enable and drive
codes-and-policies.aspx) that colleges and local municipalities. meaningful initiatives for our
outlines programmes and projects we In addition, we run an intensive non-profit partners and/or their
undertake to create a positive impact community awareness and behaviour beneficiaries. Volunteers accomplish
on our stakeholders. We have a CSR change programme to combat this by using their professional skills
committee in place to review, monitor, malaria in regions that report a and expertise to develop relevant,
and provide strategic inputs for our high Annual Parasitic Index (API) implementable, and sustainable
sustainability efforts. through our Elimination of Mosquito solutions for the organisations with
Borne Endemic Diseases (EMBED) which they work.
Over the years, we have aligned our programme. The mainstay of
sustainability efforts with national this programme is propagating
priorities and the needs of our local clean surroundings.
communities to deliver high-impact
programmes that are easy to scale We are supporting renewable energy
up. Our skill-building initiatives projects in rural India to address the
are linked to the National Skill shortage of energy supply in line
Development Mission. Furthermore, with the Deen Dayal Upadhyaya
our community development Gram Jyoti Yojana of the Government
initiatives in areas surrounding our of India.
manufacturing units are focused
on improving the teaching-learning Our community projects are
environment. supplemented by Brighter Giving,

Godrej Consumer Products Limited 91


Section A: General Information about the Company

Sr No. Details Information

1 Company Corporate Identity Number L24246MH2000PLC129806

2 Name of Company Godrej Consumer Products Limited

3 Registered Address Godrej One, Pirojshanagar, Eastern Express Highway, Vikhroli (E), Mumbai 400 079.

4 Website www.godrejcp.com

5 Email ID investor.relations@godrejcp.com

6 Financial Year reported 2016-17

7 Sector(s) that Company is engaged in Personal and Household Care Products

List of Three Key Products & Services that


8 Personal Care, Hair Care, and Home Care
the Company Manufactures or Provides

a) Number of International Locations:


GCPL has undertaken business activities in more than 12 international locations, and the
major ones are Indonesia, Argentina, UK, South Africa, Chile and USA
9 Number of Business Activity Locations
b) Number of National Locations:
GCPL has carried out business activities throughout India, with major manufacturing
locations in Madhya Pradesh, Himachal Pradesh, Assam, Jammu, Puducherry, and Goa

Indian market, export and operations in the aforementioned international


10 Markets served
geographies

Section B: Financial Details of the Company (Standalone)

Sr No. Details Information

1 Paid-up Capital 34.06 crore

2 Total Turnover 5,013.69 crore (Net of excise)

3 Total Profit after Taxes 848.03 crore (Standalone)

Total expenditure on CSR as a percentage The Company has spent an amount of 16.52 crore which is 2.02% of average net
4
of Profit after Taxes RTQſVQHNCUVſPCPEKCN[GCTUECNEWNCVGFKPVJGOCPPGTURGEKſGFKP5GEVKQPQHVJG
Companies Act, 2013 read with rules thereunder

Major areas in which the aforementioned expenditure has been incurred include the
following:
List of activities in which expenditure
5 in the aforementioned point 4 has t Livelihood enhancement projects
been incurred t Environment sustainability
t Promotion of preventive healthcare

92 Annual Report 2016-17


Business Responsibility Report

Section C: Other Details

Sr No. Details Information

Does the Company have any Subsidiary


1 Yes
Company/Companies?

Do the Subsidiary Company/Companies


participate in the Business Responsibility GCPL has Subsidiary Companies in foreign countries and encourages its Subsidiary
2 (BR) initiatives of the parent company? Companies to participate in BR initiatives. The BR policies of the Subsidiary
If yes, then indicate the number of such Companies are in line with the local requirements.
Subsidiary Company(ies)

Do any other entity/entities (e.g. suppliers


and distributors), with whom the Company
does business, participate in the BR GCPL actively encourages its business partners to adopt BR initiatives. Currently,
3 initiatives of the Company? If yes, then less than 30 per cent of other entities participate in the BR initiatives of the Company.
indicate the percentage of such entity/
entities (less than 30 per cent, 30–60 per
cent, or more than 60 per cent)

Section D: Details of the BR head

1. Details of Director/Directors Responsible for BR:

Sr No. Details Information

Details of the Director(s) responsible for Vivek Gambhir, Managing Director


1
the implementation of BR policy/policies DIN: 06527810

Vivek Gambhir, Managing Director


DIN: 06527810
Details of the BR Head DIN Number
2
(if applicable)
Telephone Number: 022-25188010
Email ID: vivek.gambhir@godrejcp.com

Godrej Consumer Products Limited 93


2. Principle-wise (as per NVGs) BR policy/policies

Sr No. Principle-wise Policies

1. Does the Company have a policy/policies for the principles? - Yes.

P1 This forms part of the Code of Conduct of the Company

P2 The policy is part of the Company’s Sustainable Procurement Policy

P3 This principle is covered under various policies of the Company, namely Code of Conduct for all employees, Equal
Opportunities Policy, Prevention of Sexual Harassment and Human Rights policy

P4 The Company does not have a specific policy, however certain aspects of this principle forms part of the CSR policy

P5 This forms part of the Human Rights policy

P6 This forms part of the Company’s CSR policy

P7 The Company does not have a separate policy. It works with collective platforms, such as trade and industry chambers and
associations, to raise matters with the relevant government bodies. It is a member of CII, FICCI and other trade associations.

P8 The Company has a CSR policy

P9 The Company does not have a specific policy. This forms part of the Code of Conduct of the Company.

Sr No. Principle-wise Policies P1 P2 P3 P4 P5 P6 P7 P8 P9

2. Has the policy been formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y


stakeholders?

3. Does the policy conform to any national/international standards? Y Y Y Y Y Y Y Y Y


If yes, specify in about 50 words
(These policies have been framed keeping in view the goals of
the organisation and the economic environment of the operations
of the Company).

4. Has the policy been approved by the Board? If yes, has it been Y N N Y N Y N Y N
signed by MD/owner/CEO/appropriate Board Director?

5. Does the Company have a specified committee of the Board/ Y Y Y Y Y Y Y Y Y


Director/Official to oversee the implementation of the policy

6. Indicate the link for the policy to be viewed online. The links have been mentioned in the principles below

7. Has the policy been formally communicated to all relevant internal Y Y Y Y Y Y Y Y Y


and external stakeholders?

8. Does the Company have an in-house structure to implement the Y Y Y Y Y Y Y Y Y


policy/policies?

9. Does the Company have a grievance redressal mechanism Y Y Y Y Y Y Y Y Y


related to the policy/policies to address stakeholders’ grievances
related to the policy/policies?

10. Has the Company carried out independent audit/evaluation of the Y Y Y Y Y Y Y Y Y


working of this policy by an internal or external agency?

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Business Responsibility Report

3. Governance related to BR:

Sr No. Details Information

Indicate the frequency with which the Board of Directors, The BR committee meets every 3-6 months to assess the BR
Committee of the Board or CEO assess the BR performance of performance of the Company
1
the Company (within 3 months, 3-6 months, annually, more than
1 year)

Does the Company publish a BR or a Sustainability Report? The Company publishes a BR and Sustainability Report
2 What is the hyperlink for viewing this report? How frequently is it annually. The web link to view these reports are:
published? http://godrejcp.com/annual-reports.aspx and
http://godrejcp.com/compliance-other-updates.aspx
respectively.

Section E: Principle-wise shareholders or for gaining direct either themselves or their relatives,
Performance or indirect personal advantage partners, or associates. If a
or taking the advantage of any director is found guilty of making
Principle 1: Businesses associated person any undue gain, he/she shall be
should conduct and t Assist the Company in liable to pay an amount equal to
govern themselves with implementing the best corporate that gain to the Company.
ethics, transparency, and governance practices t Not assign their office and any
accountability t Strictly follow the guidelines and assignment so made shall be void
rules related to insider trading as
The Board of Directors and senior stipulated by SEBI Applicability of the Code of
management of GCPL comply with Conduct:
the following Code of Conduct: The Board of Directors of GCPL shall
observe the following Code: This Code of Conduct (Code) applies
t Uphold ethical standards of t Act in accordance with the articles to the Directors of GCPL. It also
integrity and probity of the Company and provisions of applies to the senior management
t Act objectively and constructively the Listing Agreement of the Company, which is one level
while exercising their duties t Act in good faith to promote the below the executive directors, and
t Exercise their responsibilities in a objectives of the Company for all functional heads. An annual
bona fide manner in the interest of the benefit of its members as a confirmation affirming compliance
the Company whole, and act in the best interests with the Code of Conduct is obtained
t Devote sufficient time and attention of the Company, its employees, from the Board members and senior
to their professional obligations for shareholders, the community, management every year, and the
informed and balanced decision and for the protection of the same has been obtained for the year
making environment ended March 31, 2017.
t Disallow any extraneous t Exercise their duties with due
considerations that will vitiate their and reasonable care, skill, and During the year, the Company
exercise of objective independent diligence and shall exercise introduced a formal Shareholders’
judgment in the paramount interest independent judgment Feedback Survey for its shareholders.
of the Company as a whole, while t Not get involved in a situation This survey was created to seek
concurring in or dissenting from in which they may have a direct valuable feedback from the
the collective judgment of the or indirect interest that conflicts shareholders of the Company in
Board in its decisions or may possibly conflict with the order to further improve our services.
t Not abuse their position to the interest of the Company Questions regarding aspects,
detriment of the Company or its t Not achieve or attempt to achieve such as the Company’s website
any undue gain or advantage for and information available on it as

Godrej Consumer Products Limited 95


well as the services provided by our 1.1 billion consumers globally. reduce our carbon footprint while
the Company and its Registrar However, our stakeholders are not improving the product performance.
and Share Transfer Agent while only our customers but also our During fiscal year 2016-17, we
resolving queries or complaints, team members, the supply chain, undertook several initiatives,and
were formulated and included in this society, the government, and some of them are as follows:
survey. This survey was circulated the environment. t We optimised the paper thickness
in physical form and via email. of our Good knight Fast Card
The survey is also available on our We are committed to making booklet cover. Consequently, we
Company website: http://godrejcp. environmental sustainability a key reduced our paper utilisation by
com/shareholders-feedback.aspx part of our manufacturing processes. more than 193 tonnes.
From sourcing of raw materials to t We optimised our Expert powder
Does the policy relating to ethics, the technology we use at our plants, hair colour laminate and reduced
bribery, and corruption cover only we are ensuring that our overall our plastic utilisation by more than
the Company? Yes/No. Does it manufacturing approach is more 73 tonnes.
extend to the Group/joint ventures/ future ready. We are finding ways t We optimised ink usage on our
suppliers/contractors/NGOs/ to extend our sustainability efforts soap wrappers and reduced ink
others? beyond our plants to impact the utilisation by 10 tonnes.
entire life cycle of our products. t We optimised the carton thickness
The Company has a Code, which We have conducted a preliminary in our aer Click and Twist and
is applicable to all employees. For life cycle assessment of our reduced plastic usage by 37
subsidiaries and joint ventures, the soap manufacturing process and tonnes.
Code is applicable in line with the computed the results. Discussions t We optimised the weight of the
local requirements prevailing in the are in progress internally for front and back cover in Good
country of operation. The Company developing a strategy to mitigate the knight Activ+ LMD. Consequently,
encourages its business partners to effects that were highlighted by the we reduced plastic utilisation by
follow the Code. analysis. Going forward, we plan to more than 190 tonnes.
extend life cycle assessment to our
How many stakeholder complaints other range of products. Does the Company have
YGTGTGEGKXGFKPVJGRCUVſPCPEKCN procedures in place for sustainable
year and what percentage was Our sustainability strategy supports sourcing (including transportation),
satisfactorily resolved by the the development of products that are and what is the percentage of
Management? environmentally sustainable. As part inputs sourced sustainably?
of this strategy, we are developing
There were no complaints products that consume fewer In India, our demand-driven supply
outstanding at the beginning resources (energy and water), emit chain has led to mutually beneficial
of the year and 131 complaints fewer greenhouse gases (GHGs), relationships with our suppliers and
were received during the year. All and include 100 per cent recyclable, dealers. We have extended this
complaints were resolved during renewable, and/or natural materials. relationship to include partnerships
the year. with key modern trade players.
List up to three of your products We have always emphasised the
Principle 2: Businesses or services whose design procurement of raw materials in
should provide goods and has incorporated social or a responsible manner. As a best
services that are safe and environmental concerns, risks, practice, our procurement team
contribute to sustainability and/or opportunities. looks at not only the initial cost but
throughout their life cycle also the lifecycle cost. Among the
We are constantly revamping our available alternatives, we prefer the
Sustainability is an integral part products and redesigning their one with the lowest lifecycle cost
of our business and value chain, packaging to reduce our material for procurement.
and it enables us to provide high- consumption. We aim to reduce
quality, affordable products for the amount of resources used and

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We work closely with suppliers and To extend our Good & Green standards to identify and define
the manufacturing team to explore sustainability commitment to our globally recognised best practices.
and implement recycle and reuse vendors and to encourage them The policy outlines our expectations
programmes that are beneficial to contribute towards supply chain with regard to ethics, business
to the environment and create sustainability, we have initiated integrity, human rights, health
value addition to stakeholders. supply chain sustainability. and safety, environment, the local
We aim at making our supply We developed a Sustainable community, and the quality of product
chain environmentally friendly and Procurement Policy in fiscal year and operations.
responsible. We are committed 2015-16, which is an extension of our
to comply with the requirements values and is applicable to all GCPL The detailed policy is available at:
of the local environment laws and suppliers. www.godrejcp.com/codes-and-
regulations in countries and regions policies.aspx.
where we operate and from where The policy extends beyond mere
we source any material, product, compliance with the law by drawing
or service. upon internationally recognised

Sustainable Procurement Policy

Business integrity
and ethics

Human rights
Responsible conduct
Accontability
with stakeholders
and responsibility
Employee health and safety
Legal and
regulatory compliance Local community development

Ethically Socially
Driven Focussed

Green Quality
Inspired Centred

Green products and processes Quality management system

Reuse, reduce and recycle Facility and machinery

Adopting green initiatives Good manufacturing practice


and practices and quality controls

Material management

Godrej Consumer Products Limited 97


We have more than 600 suppliers on local vendor, our category manager of material and the overall carbon
board and approximately 50 per cent first visits the vendor’s location foot print of our products and giving
of them are local suppliers. In the to understand the capacity and back to the environment and society
first phase, we have communicated processes at the vendors end. at large.
our policy to nearly 100 of our We then send across a baseline
suppliers and have conducted a questionnaire (depending on the Apart from tirelessly reducing our
baseline survey to monitor their category) to the concerned vendor to consumption by re-engineering all
sustainable performance. obtain a better understanding of the our products from CFBs to laminates
vendor’s facilities and processes. to rigid plastic, we are also recycling
Apart from 50 per cent local wherever possible. We have started
suppliers, we also source nearly 50 The questionnaire is evaluated and recycling runner components that are
per cent of our materials locally. We we then make a request to audit the generated while moulding the front
have undertaken several initiatives vendor. In the audit, we categorise and back cover for our Good knight
for sourcing materials locally, which the suppliers as low-, moderate-, and Activ+ LMD machines. This has
helps us reduce carbon emissions high-risk vendors. Our moderate- and helped us reduce our PCTA usage by
and our overall carbon footprint. high-risk vendors are given a 6-month more than 11.5 tonnes.
With our conscious local sourcing period to improve their facility and
efforts, we have reduced the distance are scheduled for a re-audit. The At our Northeast manufacturing
travelled by our incoming materials suppliers are also requested to cluster, we are diverting laminate
by more than 19,466 km. provide a corrective action report on scrap generated in our units to
our findings of the audit. recycling. We are now recycling 200
In the next phase, we will audit tonnes of laminate scrap annually.
one-third of our suppliers who have These measures help us ensure the
completed our baseline survey. sustainability of our local suppliers We have also achieved more than
The suppliers will be audited for and work on building their capability. 80 per cent reusability of our empty
monitoring their performance against plastic soap noodle bags. We have
the four pillars of the policy, namely In addition, as part of our community strategically established a collection
to be an ethically driven, socially development initiative, we regularly system through reverse logistics,
focused, green-inspired, and quality- source gift products in bulk from which has resulted in significant
centred supply chain. non-profits and SHGs for our events. savings in material consumption. We
Some of our team members have have saved nearly 300 tonnes per
Has the Company taken steps also volunteered to provide their annum of material.
to procure goods and services time and skills to help build the
from local and small producers capability of these non-profits, as In line with our zero waste to landfill
including communities part of Brighter Giving, our structured goal, we have also started diverting
surrounding their place of work? volunteering programme. our waste from landfills to co-
If yes, what steps have been processing. This has resulted in 65
taken to improve the capacity Does the Company have a per cent reduction in our specific
and capability of local and small mechanism to recycle products waste to landfill compared with fiscal
vendors? and waste? If yes, what is the year 2015-16.
percentage of recycling of
Yes. 50 per cent of our vendors are products and waste? (Separately Principle 3: Businesses
local suppliers and they contribute as < 5%, 5%-10%, > 10%) should promote the well-
nearly 50 per cent of all our being of all employees
sourced materials. These vendors In line with our philosophy of
are given priority payments and responsible sourcing, we are Code of Conduct:
support for technology and quality relentlessly focused on ensuring that At Godrej Consumer Products, we
systems upgradation. we reduce, recycle, and reuse our focus on ensuring the well-being
incoming materials. This helps us in of all team members. The safety
While selecting a small-scale or reducing our overall consumption and health of our team members

98 Annual Report 2016-17


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is extremely important to us, and that diverse profiles form a part all necessary action(s) required to
we are committed to building and of the talent pool being assessed prevent and correct behaviour that
maintaining a safe and healthy for any role, with merit being the violates this policy.
workplace. Ensuring diversity, zero sole selection criterion. We are
discrimination, safety, health, and driving our efforts to make all our C. Safety and health:
other attributes essential to a healthy workplaces and functions (sales and We remain committed to
and good working environment is manufacturing) conducive for women. protecting and building a safe and
part of our Code of Conduct. All our healthy workplace.
team members demonstrate their Moreover, our Sustainable
commitmentto following the Code Procurement Policy extends the non- We provide safe equipment and
of Conduct by signing accordingly discrimination policy to our suppliers. systems of work to all team members.
in their acceptance letter. The Code All our suppliers must ensure there All our team members are expected
of Conduct is also available on the is no discrimination in their hiring to ensure that they adhere to all
internal employee portal. A few of the and employment practices based on norms and comply with all relevant
principles of this Code of Conduct race, colour, gender, age, nationality, statutory provisions. We also provide
are listed below. religion, sexual orientation, marital information, training, and supervision
status, citizenship, disability, veteran required for this purpose.
A. Diversity, antidiscrimination, status, and medical condition.
and equal opportunities policy: Furthermore, we are committed to
We recognise merit and B. Prevention of sexual the health and well-being ofour team
perseverance and encourage harassment: members and have an onsite medical
diversity in our company. We do not We are committed to creating and centre, hospital, and children’s day
tolerate any form of discrimination maintaining an atmosphere in which care facility within the Godrej Head
based on nationality, race, our team members can work together, Office, Vikhroli campus.
colour, religion, caste, gender, without fear of sexual harassment,
gender identity or expression, exploitation, or intimidation. We On-campus facilities (Vikhroli, Head
sexual orientation, disability, age, have ensured compliance with the 1HſEG 
or marital status and allow for Sexual Harassment of Women at We have a canteen facility in
equal opportunities for all our Workplace (Prevention, Prohibition the campus where refreshments
team members. and Redressal) Act, 2013. are provided. Transport facility
is provided from the office to the
We value diversity within the Group This year, we re-constituted our nearest railway station and the
and are committed to offering equal Internal Complaints Committee in Godrej Housing Colony. We have a
opportunities in employment. We accordance with the aforementioned Bank ATM and a travel help desk in
do not discriminate against any act and updated the Group’s policy our premise. We also have a fitness
team member or applicant for to ensure that women are protected centre with state-of-art equipment,
employment. Godrej Industries against sexual harassment at the a full-time fitness instructor, and a
Limited and Associate Companies workplace. This policy extends to nutritionist. All our sites are non-
also subscribes to the CII- all employees in India that includes smoking zones, and smoking is
ASSOCHAM Code of Conduct for daily wage, contract workers and strictly prohibited in the campus.
Affirmative Action. trainees, or the equivalent. It extends
to all offices, units, factories or any Women’s area
Nisaba Godrej, Executive Director, place visited by the employee during A women’s area has been designed
GCPL serves as the Diversity the course of employment and for all our female team members
Ombudsman for our team members transportation provided for work- as a resting and nursing space,
and seeks to resolve any complaints related travel. Every team member is specifically for expecting mothers,
or queries that are raised under made aware that the Group strongly new mothers, and women with
this principle. opposes sexual harassment and that special needs.
such behaviour is prohibited both by
During recruitment, we ensure law and the Group policy. We take

Godrej Consumer Products Limited 99


Some of the facilities provided are as have a late-night cab facility for our support, and two in HR responsible
follows: Mumbai-based team members for for Diversity & Inclusion practices
1. Three resting rooms with a mini ensuring their safe travel from work to and HRBP for one function. A
fridge home when working late in the office. project guide/manager is assigned
2. Lounge seating with magazines Our team members can avail this to every intern for the duration of
and newspapers and a tea and facility by logging on to the Uber/OLA the project, and access to various
coffee station,which is available for business app, and the Company Godrej Resource Groups, such
throughout the day during is directly billed for the same. as Godrej Women’s Network and
operational hours Godrej Alliance for Parents, is
3. First aid and essential medicines Our team members travelling for work provided for networking and training
anywhere in India can also avail the opportunities. Once the programme
Our progressive HR policies: Uber/OLA for business service with achieves success, more such
GCPL prides itself on being a great ease. During the year, in association projects are anticipated across the
place to work, a fact recognised and with OLA, we also started cabs for various departments.
acknowledged externally as well. outstation trips. Outstation services
This is evident in GCPL’s consistent can be booked in advance through One of the six participants has been
ranking as the best FMCG Company the OLA App. offered a permanent role (in the
to work for in India in the Great Place HR team).
to Work Study 2016. Thirteen years in C. Careers 2.0 programme:
a row, GCPL has featured on the list As research suggests, increasingly, D. Sustenance allowance policy:
of best companies to work for. women employees drop out of the We also offer sustenance allowance
workforce at mid-management levels, to our specially-abled team members.
We have also featured among the top and maternity is the major reason This financial support is provided
19 best employers in Asia in the Aon for this phenomenon. To tap into this to our team members who require
Best Employers in India 2017. Our HR talent pool and provide a transition additional infrastructure and safe
policies, such as flexible work hours, platform to women professionals who travel from home to work. This policy
work from home arrangements, and wish to return to work after a career is applicable to all team members at
part-time work, to name a few, go a break, we launched our second GCPL. The objective is to improve the
long way in ensuring that our team careers programme in 2015, called living conditions and provide better
members successfully strike a work- Careers 2.0. The participants are opportunities and sustenance to
life balance. Some of our policies are offered attractive project stipends to specially-abled employees.
as follows: work on live business projects on a
flexi or part-time basis. By providing Our engagement forums:
A. Maternity and paternity leave placement opportunities within There are multiple touch points for
CPFDGPGſVURQNKE[ the Group, Careers 2.0, led by our the leadership team to interact with
Diversity & Inclusion team, intends our team members through forums
We provide a fully paid 6-month to facilitate successful interns who such as the long-range plan, annual
maternity leave and benefits and a are interested in transitioning to full- operating plan cascades and
flexi-work arrangement for 6 months time employment. updates, open houses, town halls,
from the date of resuming work. focus groups around engagement
We have had six projects under this surveys, HR connect sessions,
We provide a 3-month adoption leave programme: one in Manufacturing and skip-level meetings by senior
and benefits, in addition to a paternity for identifying low-cost automation leadership. Every quarter, our
leave and benefits option. opportunities in our manufacturing Managing Director and the senior
plants, another two in Finance (to leadership team provide updates
B. Late-night cab facility and Uber/ recommend cost-saving initiatives via V Cast - an interactive, evolving
Ola for Business: on our fixed overheads and assist platform to provide an overview of
in getting GST ready in view of our business performance to our
We care deeply about the safety recent legal changes), one in Sales team members. More recently, we
and well-being of all Godrejites. We to provide Big Data analytical moved our updates to Workplace

100 Annual Report 2016-17


Business Responsibility Report

by Facebook. This will help us gain We provide continuous skill Does the Company have an
transparency in information sharing upgradation and learning employee association that is
and improve interaction among our opportunities through structured recognised by the management?
team members. career discussions and individual
development plans. We invest in Yes.
We also engage our team members functional training for all our team
with employee opinion surveys, such members, on payroll and contract, What percentage of permanent
as the In Tune survey organised in line with their current and future employees are members of the
by Aon Hewitt, feedback survey on career aspirations. The learning recognised employee association?
reviews, and the Great Place to Work suite encompasses functional
survey organised by the Great Place training, leadership development 16 per cent.
to Work Institute, India. We practice programmes, and behavioural
Bedhadak Bolo as a philosophy that training designed for leading self, Please indicate the number of
salutes the spirit of expression and others, and businesses. complaints relating to child labour,
innovation at Godrej. This encourages forced labour, involuntary labour,
employees to speak and express GCPL’s Sustainable Procurement and sexual harassment in the last
themselves openly and fearlessly. Policy also recommends that ſPCPEKCN[GCTCPFRGPFKPICUQP
Bedhadak Bolo has resulted in team suppliers take the initiative to recruit VJGGPFQHVJGſPCPEKCN[GCT
members coming forward with their a diverse and inclusive workforce
suggestions that have translated into in terms of gender, experience, Nil. Moreover, our Sustainable
numerous changes and innovations and ethnicity. Our suppliers are Procurement Policy also covers
within the organisation. It has also expected to adopt robust and our suppliers and prohibits use of
improved team dynamics and relevant management practices to child labour at any stage of their
led to an incredibly more open comply with applicable health and business operations.
work environment. safety laws, rules, regulations, and
industry standards.

Total permanent employees 2,457

Male 2,226

Female 231

Employees with disabilities 8

Contract employees 5,024

What percentage of your employees mentioned below were given safety and skill upgradation training in the last year?

Category Safety Skill upgradation

Permanent male employees 95% 92%

Permanent female employees 92% 87%

Employees with disabilities 100% 88%

Casual/temporary/contractual employees 100% 99%

Godrej Consumer Products Limited 101


Principle 4: Businesses We are working in partnership with the 4. For people with disabilities, we
should respect the interests government, rural people, and local identify appropriate jobs and
of and be responsive village communities. This approach have necessary infrastructural
towards all stakeholders, enables us to distribute accountability facilities that enable them to
particularly those who are and ensure the long-term impact of our work with dignity.
disadvantaged, vulnerable, community development initiatives.
and marginalised 5. We have set aside a dedicated
Recruitment of candidates from the budget towards Affirmative
The identification of all relevant Scheduled Caste/Scheduled Tribe Action.
stakeholders and understanding their and Physically Challenged (SC/ST/
expectations is of high concern for PC) categories has been considered 6. We provide equal training and
GCPL in our quest to be sustainable. as one of the major performance development opportunities to
We identify key stakeholders on measures of the central recruitment improve the employability of all
the basis of their influence on our process owner. GCPL participates our employees.
operations and our impact on them. in government fairs for recruiting
The stakeholder engagement process candidates from the SC/ST/PC Partnership and initiatives for
consists of various activities from categories. GCPL has also partnered community development and
stakeholder identification, consultation, with NGOs to provide employment CHſTOCVKXGCEVKQP
prioritisation, collaboration, and opportunities and counselling to
reporting. people from one of these categories. Malanpur manufacturing site:
In line with our commitment to
We have already identified and Key highlights: improve the standard of living of
prioritised key stakeholders, and we 1. To sustain Affirmative Action in the people around our factories,
continue our engagement with them GCPL, the Unit Head interviews we continue to work closely with
through various mechanisms, including every SC/ST/PC candidate Singwari village near our Malanpur
consultations with local communities, applying for a job before the final plant. Singwari has a population of
supplier/vendor meets, customer/ decision is taken. This reduces approximately 5,000 people, and
employee satisfaction surveys, individual biases of managers through our needs assessment,
and investor forums. To align our against these categories of we identified that education, water,
community development programmes candidates, if any. Recruitment sanitation and healthcare are some of
to UN’s sustainable development of SC/ST/PC candidates has the priority needs of the village.
goals, we conducted a detailed been considered as one of the t 8BUFSBWBJMBCJMJUZXBTBOFFE
community needs assessment in our performance measures of the that was evident during our
priority plant locations. We invited central recruitment process. needs assessment and it was an
an external third-party consultant to urgent priority of the community.
assess the needs of the community. 2. Our employee referral policy In consultation with the local
The team followed a three-step promotes referrals of SC/ST/PC panchayat and the community,
approach, where they connected candidates by offering higher we revived a dysfunctional hand
with our plant and corporate office referral amounts. pump and built an overhead water
and undertook extensive field-based storage tank having a capacity of
assessments, backed by thorough 3. The HR function keeps a regular 10,000 litres near the Government
secondary research to validate key track of progress of Affirmative Middle School, Singwari. This
facts and obtain additional information Action in the organisation and facility provides water access
available from official sources. The takes necessary corrective to more than 250 people of the
result is a comprehensive report of the actions, if needed. Adherence village, and they now do not have
community, their needs, gaps in the to and proactive involvement to travel to get water.
system, and our way forward. We are in Affirmative Action has been We worked in partnership with
now in the process of planning and added to the performance targets the panchayat and the people of
implementing high-impact community of many of our team members. the village. This approach helped
development programmes. us to build accountability and

102 Annual Report 2016-17


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In Singwari village, Malanpur, we revived


a dilapidated hand pump and built an
overhead water storage tank to address
the critical need of water availability

ensure the long-term impact of t Singwari has a population of t We organised an environment


the project. Now, the villagers approximately 5,000 people, sensitisation session with our
have taken the responsibility of however, the village is deprived contract workers and local
maintaining the water storage tank. of basic medical facilities. To villagers and distributed more
In line with this initiative, our fill this gap, we provide free than 150 saplings of native plants
team members volunteered on medical aid to the villagers to them for planting around
Godrej Global Volunteering Day, along with a consulting doctor their homes.
December 5, at the primary and who visits thrice a week. We t In collaboration with the Central
middle school in Singwari to also organised a women’s Board for Workers Education,
spread the message of water health camp in partnership with Gwalior, we organised several
conservation, health, hygiene Gohad Dispensary, Bhind. A workshops for women. From
and sanitation. More than 50 of team of doctors setup camps in August 8 to 11, we organised
our team members organised the schools for a day to check a workshop on women’s
various interactive activities for the and diagnose various chronic empowerment where we provided
school children. diseases and infections. More information on government
t We provide assistance to primary than 190 women and girls schemes for women and how to
and middle schools in Singwari availed the services. We included avail them. More than 35 women
village. To motivate the children people between ages 15 and participated in the sessions.
to stay in school, we distributed 50 years. Three children were We also organised a workshop
soap cakes to children with an treated, whereas seven children on digital literacy where we
average attendance of at least were referred to the district demonstrated how to perform
80 per cent. Other initiatives health centre. digital transactions. More than
included organising a cultural and t For girls and women of Singwari, 100 women participated in
sports programme to encourage several activities were organised the workshop.
the children to participate in to promote health and safety t At the Vigyan Mela, organised
solo or group activities and a awareness. To demonstrate fire in Bhopal by Madhya Pradesh
picnic for the students of the safety, we organised an awareness Council of Science & Technology
primary and middle schools. session by experts to tackle the in collaboration with Vigyan Bharti,
Eight schools including more outbreak of electric, LPG, or we showcased a working model of
than 1,000 students and teachers any other domestic fire. We also ETP/soap process and products
participated in these events. We held a home safety awareness and shared our commitment of
ended these day-long activities by session during the National Safety building a more employable and
distributing prizes to the winners Week (March 4 to 11). More than greener India. We also won an
and meritorious students. In line 45 girls and women attended award for the Best Pavilion in the
with the Swachh Bharat Mission, these sessions and gained industry category.
we renovated the toilet facilities of useful insights. t We continue to drive our efforts
the Government Middle School. to promote and uplift the

Godrej Consumer Products Limited 103


In Rajkriya Government Primary School in
Solan, we constructed a Badminton court
and distributed sports supplies

education level and employment entrepreneurship, environment 18th National Creativity Summit,
opportunities for the SC/ST/PC and safety based on the New Delhi. We also won the
(Physically Challenged) students. Godrej experience. HR Excellency Award at the 8th
These efforts include providing t We organised an awareness National HR Summit organised by
scholarships to meritorious rally on the occasion of the Road ABV-IIITM, Gwalior.
students of Singwari village who Safety Week (January 11 to 17,
aspire to excel in their studies. 2017). Our team members and Baddi manufacturing unit:
Nine SC/ST students were the local community collaborated t %VSJOHPVSOFFETBTTFTTNFOU 
awarded scholarships in 2016- to sensitise people regarding basic infrastructure at local
17. We are working to include SC/ road safety. Moreover, in schools was evident as a
ST/PC people in our recruitment collaboration with the Health and priority need. In consultation
process. We provide sustenance Safety Department, Gwalior, we with the community and school
allowance to our PC team organised a Safety Summit on administration, we constructed
members and 13.30 per cent and National Safety Day. Nearly 45 a girls’ toilet at the S.K. Public
1.11 per cent of our workforce is people participated and learned School and a badminton court
from the SC and ST categories, how to handle an emergency. at the Government Primary
respectively. Furthermore, 45 t We have a strong focus on School. In addition, we provided
per cent of our contract team Diversity & Inclusion practices a mobile library and storage
members are SC/ST. Every year, and provide equal opportunities equipment to both the schools.
we visit Ambedkar Institute for for all our team members. We More than 300 students from
Handicapped, Kanpur, to employ are grooming women leaders both schools will benefit from the
candidates, depending on at our manufacturing plant. infrastructure support.
our requirements. We have three women team We worked in partnership with
t To explore new avenues to help members working and handling the school administration and
underprivileged people, we have shift operations. the community. This approach
identified two NGOs, Snehalaya t We also won several awards helped us distribute accountability
and Vivekananda Nidam, who this year. The Confederation of and ensure the long-term impact
are working for the SC/ST and Indian Industry - Sohrabji Godrej of the project. The school
differently-abled children in and Green Business Centre, awarded administration has now taken the
around Gwalior. We regularly buy the Malanpur manufacturing responsibility of maintaining the
responsibly produced products plant GreenCo Gold rating at infrastructure facilities.
from these NGOs and support our first Green Company Rating In line with this initiative, our
their cause. assessment. We bagged 15 team members volunteered
t To improve employability, we awards in various categories on Godrej Global Volunteering
partnered with schools, colleges at the National Convention on Day, December 5, at the local
and industries to create awareness Quality Concepts held in Chennai. schools to spread the message of
regarding quality concepts, We also won 11 awards at the hygiene and sanitation and imbibe

104 Annual Report 2016-17


Business Responsibility Report

In Betkuchi local school the classrooms


were in a dilapidated condition. We
constructed three classrooms in the
school and over 450 students will benefit
from the infrastructure support.

sports culture. More than 60 of Northeast manufacturing cluster: t *OMJOFXJUIPVSDPNNJUNFOUUP


our team members organised t %VSJOHPVSOFFETBTTFTTNFOU  building a greener India, we
various interactive activities for the infrastructure support at the celebrated World Environment
school children. Betkuchi local school came Day by organising a tree
t *OMJOFXJUIPVSDPNNJUNFOUUP up as a priority need. The plantation drive around our plant,
building a greener India, we classrooms were in a dilapidated local schools and hospitals. We
celebrated the World Environment condition, and in consultation organised a cleanliness drive with
Day at Baddi on June 5. To with the community and school local school students in Marming,
encourage the students to administration, we constructed Sikkim, to sensitise them regarding
contribute towards improving the three classrooms for the Betkuchi cleanliness. In collaboration
environment, we organised an Middle School, Guwahati. More with the Guwahati Municipality
awareness session. Our team than 450 students will benefit from Association, we organised a
members and contract workers the infrastructure support. mosquito fogging drive in the
planted saplings of native plants in In line with this initiative, our local community.
public spaces. We also organised team members volunteered on t 8FIBWFSFMFOUMFTTMZGPDVTFE
a cleanliness drive close to our Godrej Global Volunteering Day, on safety at our manufacturing
manufacturing site. December 5, at the local schools plants; thus, we celebrate the
t 5PFODPVSBHFBDBEFNJD to spread the message of hygiene, National Safety Week, Road Safety
performance, every year we sanitation and waste management. Week and Fire Service Week.
recognise and award meritorious More than 60 of our team members We organised an awareness
students at local schools near organised various interactive campaign in New Guwahati
our plant. Meritorious students activities for the school children. Brahmaputra Industrial Parking
from each class are invited to the t 8FPSHBOJTFETFWFSBMIFBMUI Area to sensitise bikers and
factory unit with their parents and camps in the year. In collaboration car and truck drivers. We also
teachers and are awarded for with Sankaradeva Nethralaya, organised an awareness session
their performance. we organised an eye check-up for women in the residential locality
t "TQBSUPGUIFSPBETBGFUZJOJUJBUJWF  camp at our New Conso and on domestic electrical safety.
we organised an awareness New Guwahati manufacturing
campaign in Baddi to sensitise units. We organised a general South manufacturing cluster:
bikers and car or truck drivers. health check-up camp at our We work closely with local
We distributed pocket guides Lokhra manufacturing unit in government schools and provide
with tips on safe driving at busy association with GVK EMRI. We supplies to the schools and the
traffic points. We also organised also organised a health training students. At Kannikoil Government
a play and awareness training session for women at our New School, we provided stationary
for the Truckers union in Baddi. Guwahati unit in association with supplies to the students. We also
We reached out to more than Narayana Hospital. organised an awareness session
80 drivers. on Global Handwashing Day to

Godrej Consumer Products Limited 105


Interacting with community stakeholders in
our Pondicherry manufacturing unit

promote cleanliness and disease supplier/vendor meets, customer/ marginalised stakeholders to plan
prevention. At Government Primary employee satisfaction surveys and and implement high-impact projects
School, Mathalakudi, Nedungadu, investor forums. in the communities in which we
we provided the basic supplies to operate. In the first phase, we are
the school to improve the teaching– Out of the above, has the Company addressing critical needs of the
learning experience. We repaired KFGPVKſGFVJGFKUCFXCPVCIGF community and working with local
the drainage facility at the Manapet vulnerable and marginalised low-income education institutions
Government School to improve the stakeholders? to improve their teaching–learning
sanitation in the area and provide a experience. All our initiatives are
clean and safe learning environment Yes. We invited an independent mentioned in previous sections under
to the students. We celebrated third-party external agency to each of our manufacturing clusters.
Children’s Day at Global Trust for conduct the needs assessment of
the Differently Abled School and our the communities we work in. The Our initiatives are in collaboration
team members organised various team followed a three-step approach, with the community and the local
interactive activities for the children. where the communities connected government. This approach enables
t We organised a medical health with our plant and corporate office us to build accountability, ensure
camp in collaboration with and conducted extensive field- the long-term impact of the project
Mahatma Gandhi Hospital at the based assessments backed by and deepen our engagement
Government Primary School. thorough secondary research with the marginalised section of
A paediatrician, dermatologist, to validate key facts and obtain the community.
and dentist checked more than additional information available
70 students and sensitised them from official sources. The result Our community projects are
about health and hygiene. is a comprehensive report of the supplemented by Brighter
t We also organised an awareness community, various stakeholders, the Giving, a structured volunteering
rally on women’s education and vulnerability of the community and platform, through which our team
environment with support from their needs, gaps in the system and members can offer their time and
Primary Government School, our way forward. skills to help address a non-profit
Madhalamkudi. organisation’s needs.
Are there any special initiatives
Has the Company mapped its taken by the Company to engage The programme was launched in
internal and external stakeholders? with the disadvantaged, vulnerable July 2013 with a starting cohort
and marginalised stakeholders? of 15 Brighter Giving volunteers.
Yes. We have identified and Since then, we have had more
prioritised key stakeholders. We In line with the needs assessment than 130 Godrejites complete
continue our engagement with them reports, we are working in their volunteering projects in four
through various mechanisms such as collaboration with the local cities. We have partnered with
consultations with local communities, panchayat, government and our two organisations that are helping

106 Annual Report 2016-17


Business Responsibility Report

As part of the Godrej Global


Volunteering Day, our team members
volunteered in over 97 education
institutes across 9 countries; reaching
out to over 14,000 children

us connect our team members to which is available on How many stakeholder complaints
relevant projects as per their own http://www.godrejcp.com/codes- have been received in the past
time and convenience. Nearly 65 of and-policies.aspx. GCPL respects ſPCPEKCN[GCTCPFYJCVRGTEGPVCIG
our team members are volunteering and promotes human rights for all was satisfactorily resolved by the
long-term with non-profits. individuals. We do not discriminate management?
against any team member or applicant
We also organise short-term for employment based on nationality, In our endeavour to strengthen our
volunteering activities. The annual race, colour, religion, caste, gender, relationship with our stakeholders,
Godrej Global Volunteering Day is gender identity/expression, sexual we have addressed all feedback
a platform for our team members to orientation, disability, age or marital reported in the last financial year.
connect with our communities more status. GCPL also subscribes to the
meaningfully. In 2016, more than CII-ASSOCHAM Code of Conduct for Principle 6: Businesses
1,000 of our GCPL team members Affirmative Action. Our sustainable should respect, protect, and
across 9 countries volunteered in procurement policy particularly make efforts to restore the
more than 35 education institutions emphasises prohibiting the use environment
and reached out to more than 14,000 of child labour at any stage of the
children to improve their teaching- business process and suggests We are deeply committed to
learning experience. that suppliers should comply strengthening our approach to
with applicable wage and hour make environmental sustainability
Our team members also participate laws, regulations and mandatory a key part of our manufacturing
in the Standard Chartered Mumbai industry standards. processes. By reducing our energy
Marathon in support of Teach for needs, managing our waste, and
India. In January 2017, 15 of our Does the policy of the Company transforming our products, we are
team members completed the on human rights cover only the driving success for both our business
marathon and raised over 7,00,000 Company or does it extend to the and the planet. From sourcing of
to bring quality education to children Group/joint ventures/suppliers/ raw materials to the manufacturing
from low-income group families contractors/NGOs/others? technology used in our plants, we are
across India. The Godrej Group integrating sustainability into the very
was one of the top three corporate The Company has a policy that is core of our business processes and
fundraisers at the Standard Chartered applicable to all our team members. value chain.
Mumbai Marathon 2017. For its subsidiaries and joint ventures,
the Code of Conduct is applicable We are also searching for ways
Principle 5: Businesses in line with the local requirements to extend our sustainability efforts
should respect and promote prevailing in the country of operation. beyond our manufacturing plants
human rights The Company encourages its to impact the entire life cycle of our
business partners to follow the policy. products. We are building capabilities
GCPL has a human rights policy, to make our overall manufacturing

Godrej Consumer Products Limited 107


approach more future ready. Our products. The ‘good’ products are utilisation of electricity generated
Green commitment by the year 2020 designed to address a critical social from renewable energy sources.
is as follows: issue (e.g. healthcare and sanitation)
for consumers at the base of the We comply with all requirements of
t To become carbon neutral income pyramid. We define ‘green’ the Central Pollution Control Board
t To reduce specific energy products as those that comprise and State Pollution Control Board.
consumption by 30 per cent environmentally preferable attributes. We have created detailed checklists
t To achieve a positive water We are continuously striving to for compliance and continuously
balance achieve the goals and targets emphasise improving productivity
t To send zero waste to landfill set under our Good & Green and plant utilisation to reduce our
t To increase renewable energy use commitment. specific consumption of water
by 30 per cent and energy. We have set targets
We are using clean energy sources for improving our environment
Furthermore, we focus on innovation by shifting from fossil fuels to performance for both short-term as
in our product line and are committed renewable fuels such as through well as long-term.
to developing ‘good’ and ‘green’ biomass utilisation in boilers and

5RGEKſEGPGTI[EQPUWORVKQP FY 2014-15 820


Consumption in kWh/ton FY 2015-16 769

FY 2016-17 798

* In fiscal year 2016-17, our specific energy consumption increased because of low production volumes, lower gram soap
production and biomass boiler operation

5RGEKſEITGGPJQWUGICU
)*) GOKUUKQP FY 2014-15 248
Emissions in kg CO2e/ton FY 2015-16 231

FY 2016-17 203

5RGEKſEYCUVGUGPVVQNCPFſNN FY 2014-15 1.06


Waste in kg/ton FY 2015-16 1.04

FY 2016-17 0.46

Renewable energy portfolio FY 2014-15 10.2%


Energy consumption in percentage FY 2015-16 15.7%

FY 2016-17 24.8%

108 Annual Report 2016-17


Business Responsibility Report

Does the policy related to Principle global environmental issues such in adopting sustainable farming
6 cover only the Company or as climate change and global practices and mitigating the impact of
does it extend to the Group/joint warming? Yes/No. If yes, please give climate change. We estimate that the
ventures/suppliers/contractors/ the hyperlink to the webpage. project will offset GHG emissions to
NGOs/others? the tune of 75,000 tCO2e and restore
All our manufacturing units monitor 3.5 million kL of water.
All of our major manufacturing their GHG emissions, and we
units have policies on environment, have identified short-term and To address the shortage of energy
health and safety measures. For the long-term targets for the reduction supply, we are working to create
subsidiaries and joint ventures, the of the emission. Some of the renewable energy ecosystems in
Code of Conduct is applicable in line initiatives include utilisation of rural India. We provide decentralised,
with the local requirements prevailing biomass briquettes instead of coal, off-grid renewable energy systems
in the country of operation. We procurement of renewable energy, flue through community-level installations.
encourage our business partners to gas heat recovery from boilers and its These mini- and micro-grids are
follow the policy. utilisation in the process, installation being installed in 67 electricity-
of energy-efficient equipment and lacking villages in Andhra Pradesh,
To achieve our goals and ensure installation of energy-saving lights. Uttarakhand, and Madhya Pradesh.
ethical conduct, our suppliers should In addition, we are training the local
share our values and vision and raise In addition to taking measures to youth and building awareness on the
the sustainability standards in our reduce, reuse and recycle waste potential of renewable energy systems
supply chain. We acknowledge that at our manufacturing plants, we for meeting rural energy needs.
long-term sustainable development have initiated community waste
of our suppliers is critical to our joint management projects with the aim to All our initiatives are detailed and
success. We value our relationship divert waste from landfills. We have updated at http://www.godrej.com/
with more than 700 suppliers, who launched community-based waste greener-india.html
share the same approach and vision management programmes in Guwahati
towards doing business. and Hyderabad in partnership with Does the Company identify and
the local municipalities. We aim to assess potential environmental
In line with our commitment to process nearly 10,000 tonnes of waste risks? Yes/No.
building a greener India, we per annum, which otherwise would
have developed a Sustainable end up in landfill, in an environmentally Yes, potential aspects related to
Procurement Policy that is an friendly manner. the environment are identified and
extension of our values and is evaluated for their impact based
applicable to all our suppliers. In Globally, climate change is affecting on severity, scale, and probability.
the first phase, we are working to seasonal weather patterns, leading Operational control procedures are in
implement the policy for our top to either intense precipitation or place for all the significant aspects.
100 suppliers. drought-like events. In fiscal year
2016-17, we initiated an integrated Does the Company have any project
We will periodically review the watershed management programme related to the Clean Development
policy to ensure that it continues to in the drought-prone district, Siddipet, Mechanism? If so, provide details
help us move towards our vision. Telangana. We are working in thereof in approximately 50 words.
The suppliers are audited for their partnership with NABARD to help Furthermore, if yes, has any
performance against the four pillars restore the ecological balance of environmental compliance report
of the policy, namely to be an the region and mitigate the risk of been prepared?
ethically driven, socially focused, climate change for the local farmers.
green-inspired and quality-centred The project covers more than 3,300 No. However, we will be registering
supply chain. hectares of land and will aim to our integrated watershed
recharge groundwater and make management programme under VCS
Does the Company have more water available for irrigation. We in 2017-18.
strategies/initiatives to address are also working to support farmers

Godrej Consumer Products Limited 109


Has the Company undertaken of energy-efficient LED lighting, Pradesh. In addition, we are training
any other initiatives on clean optimisation of pumps, replacing the local youth and building awareness
VGEJPQNQI[GPGTI[GHſEKGPE[CPF high-HP motors with low-HP on the potential of renewable energy
renewable energy? Yes/No. If yes, motors and improvements in the systems for meeting rural energy
please provide the hyperlink to the compressed air system. needs.
webpage. t Installation of a micro-turbine: A
micro-turbine of 150 kW was installed Are the emissions/waste generated
We have implemented more than 30 towards the end of fiscal year by the Company within the
initiatives across our manufacturing 2015-16. The micro-turbine is now permissible limits given by CPCB/
facilities in India on clean technology, operational and powers a significant 52%$HQTVJGſPCPEKCN[GCTDGKPI
energy efficiency, and renewable number of auxiliaries in the plant. reported?
energy. Some of the major initiatives This project eliminates pressure
we undertook during fiscal year 2016- reduction valves in the steam lines, Yes. All the units comply with the
17 are as follows: thus converting pressure loss into norms of CPCB and SPCB.
t Installation of an energy-efficient power generation. The micro-turbine
water jet vacuum system: The will help us generate 100 kWh of Number of show cause/legal notices
existing steam-based vacuum power per annum. received from the CPCB/SPCB which
system was replaced with an t Renewable power purchase are pending as on the end of the
energy-efficient water jet vacuum agreement: We signed a power ſPCPEKCN[GCT
system in fat splitting plant No. 3 at purchase agreement to purchase
our Malanpur soap manufacturing solar-based renewable energy for Nil.
factory. We extended this system our Malanpur factory. We started
to cover other vacuum systems receiving the renewable power from Principle 7: Businesses,
in the plant, which has led to May 2016. Nearly 35 per cent of the when engaged in influencing
considerable savings in energy. plant’s energy requirement is now public and regulatory policy,
t Installation of a heat exchanger: met by renewable energy. By fiscal should do so in a responsible
We installed a heat exchanger for year 2017-18, we expect to meet manner
pre-heating the steam generator nearly 50 per cent of the plant’s
feed water with waste heat from energy requirement. Is your Company a member of any
FADP 3. t Diversion of compressor exhaust trade and chamber or association?
t Installation of energy-efficient air: We have diverted compressor If yes, name only those major ones
motors: We have started mass exhaust air to coil dryers. This that your business deals with.
installation of energy-efficient measure has led to considerable
motors at all our manufacturing energy savings and will be replicated GCPL ensures that its policy is with
clusters. This has helped us at our coil manufacturing units in all the highest degree of responsible
to further reduce our electrical clusters. and ethical behaviour and works
energy consumption. t We have also started power factor with collective platforms, such as
t Implementation of a biomass improvement projects at all our trade and industry chambers and
boiler: A biomass-based boiler of manufacturing sites associations, to raise matters with the
14 TPH capacity was installed at relevant government bodies. GCPL is
our Malanpur manufacturing plant. Apart from our manufacturing sites, we a member of CII, FICCI and other trade
It has helped us replace fossil are also installing renewable energy associations.
fuel and utilise renewable energy ecosystems in rural communities to
resources and significantly added address the shortage of energy supply. Have you advocated/lobbied through
to our renewable energy portfolio. We provide decentralised, off-grid the aforementioned associations for
t We have implemented several renewable energy systems through the advancement or improvement of
other energy-efficient measures community-level installations. These public good? Y/N. If yes, specify the
across various manufacturing mini- and micro-grids are being installed broad areas (drop box: Governance
plants, which include optimisation in 67 energy-dark villages in Andhra and Administration, Economic
in steam consumption, installation Pradesh, Uttarakhand and Madhya Reforms, Inclusive Development

110 Annual Report 2016-17


Business Responsibility Report

Our flagship programme, Godrej Salon-i,


has trained over 87,975 young girls and
women in beauty and hair care

Policies, Energy Security, Water, building their skills and empowering to design and run numerous
Food Security, Sustainable them. We build vocational skills and employability training programmes
Business Principle and Others). provide post-training support. for young people from low-income
communities. We aim to improve the
GCPL has representation through We run an intensive community earning potential of our trainees by
CII and other trade associations for awareness and behaviour change building their skills and empowering
the advancement/improvement of programme to combat malaria them. Our programmes focus on life
public good. in regions that report a high API. skills training, entrepreneurship and
through our EMBED programme, post-placement support.
Principle 8: Businesses we collaborate with non-profits and
should support inclusive governments and aim to reduce As of March 2017, we have trained
growth and equitable mortality due to malaria in high more than 187,000 youth in skills that
development API regions. will enhance their earning potential.
These programmes include the
Sustainability is intrinsically linked to &QGUVJG%QORCP[JCXGURGEKſE following:
not only our growth strategy but also programmes/initiatives/projects
our legacy and values. We strongly in pursuit of the policy related to t #FBVUZBOEIBJSDBSFQSPHSBNNF
believe that we are accountable to Principle 8? If yes, please provide t 3FUBJMNBOBHFNFOUUSBJOJOH
our communities while we continue to details thereof. t $IBOOFMTBMFTGPSSVSBMZPVUI
drive shareholder value. This helps us
improve the lives of those at the base Yes. We have a dedicated Beauty and hair care programme:
of the pyramid, preserve and protect sustainability department, Good Our flagship programme, Godrej
the environment, improve efficiency & Green, which focuses on these Salon-i, trains young girls and women
of our operations and innovate. projects and initiatives, and the in beauty and hair care. More than
scope of work is defined in the CSR 30,000 candidates have graduated
As part of our sustainability strategy, policy of the Company. The policy is from this programme in fiscal year
Good & Green, we address the available here: http://www.godrejcp. 2016-17. Since the inception of
critical need of enhancing the com/codes-and-policies.aspx the programme in 2011, we have
livelihoods of low-income youth. provided more than 87,975 young
We collaborate with non-profit Are the programmes/projects women across India with skills that
organisations and social enterprises undertaken through in-house team/ will improve their earning potential,
to design and run numerous own foundation/external NGO/ help them increase their mobility and
employability training programmes government structure/any other negotiate their rights at home and in
for young people from low-income organisation? the community.
communities. The focus of these
programmes is to improve the We collaborate with non-profit We run the Salon-i programme in
earning potential of our trainees by organisations and social enterprises partnership with more than 31 non-

Godrej Consumer Products Limited 111


profit partners in 23 Indian states. their enterprise. Entrepreneurship, the classroom and the other half is
Our Salon-i programme is embedded beauty and life skills are core experiential learning. The programme
in the community work carried out by components of the training. Our effort has been specially designed for
our non-profit partners. Our partners is helping create opportunities for training distributor sales resources.
work with women from the informal skilled women in their own region More than 75 per cent of our trainees
economy of slum clusters to women and enabling them to expand have been placed.
from urban slums who are vulnerable their business.
to human trafficking. Have you done any impact
Retail management training: assessment of your initiative?
We have developed the training Our retail management training We regularly evaluate all our
curriculum (trainer manual, audio- programme helps retail shop owners programmes. In fiscal year 2016-17,
visual content, assessment app, and in-shop associates build skills we organised a semi-longitudinal
and other learning tools) entirely relevant to general trade. It aims at study of the programme. The aim of
in-house, with the entrepreneurship equipping small retailers with skills the study was to cover beneficiaries
and life skills modules at the core. to compete against organised retail trained across India to understand
Although domain skills are the focus stores. The in-shop retail associates the changes and impact created by
of the programme, life skills and programme involves training in stock the training programme by following
entrepreneurship development have and shelf management. It helps them a set of trainees for a period of 2
become the soul of the programme know their products and understand years, that is, adopting a longitudinal
over time. We have developed the growth drivers of the business. approach. The longitudinal study
integrated activities and games The training shop owner’s programme was designed to understand the
to help our trainees imbibe these helps them understand the drivers of trajectories, decisions and changes
concepts. The Salon-i course their business as well as efficiently over time in a trainee’s life, rather than
curriculum has been recognised by manage stock and interact with the situation at only one point in time.
industry peers, and we are affiliated customers. It also covers general The study adopted a mixed-methods
to the Beauty and Wellness Sector trends in retail and self-service approach:
Skill Council that is promoted and stores. Since fiscal year 2013-14, we
supported by the Confederation of have trained more than 7,100 people Quantitative study:
Indian Industry and the National Skill in retail management. To adopt a cost-effective model,
Development Council. Our training a short, telephonic survey was
module is now part of the national Channel sales for rural youth: designed by the impact assessment
training curriculum. As FMCG and other similar industries partner and administered by a rural
expand in India, a ready pipeline of BPO to trainees.
In 2016, the Godrej Salon-i skilled talent for sales, particularly
programme reached out to women in rural areas, will be an essential Qualitative study:
micro-entrepreneurs in the beauty enabler of growth. The industry In this study, face-to-face interviews
and wellness sector in various parts currently records high attrition of were conducted with a select
of the country, namely Maharashtra, entry-level sales representatives. This number of beneficiaries, who could
Delhi, Gujarat, Nagaland and Bihar, can be partly attributed to the lack of be tracked over the next 2 years,
and setup the Beauty-Preneur requisite skills, leading to an inability to understand how the programme
platform. The Beauty-Preneur to meet targets and manage pressure impacted their life and career
initiative is aimed to incubate women at work. Our training programme trajectories.
entrepreneurs working in the beauty in channel sales provide skills to
and wellness sector. It enables these unemployed youth and builds a talent Impact assessment of beauty and
women to expand their business pipeline for the industry. hair care programme:
and start training other girls as well To date, our programme has
as empowering them through life Since fiscal year 2012-13, we have trained more than 87,975 women
skills and entrepreneurship. This trained nearly 73,500 youth across in skills that will help them become
is in addition to their regular salon 44 locations. It is a 40-hour training financially independent and better
business and helps them expand programme, half of which is spent in negotiate their rights at home and in

112 Annual Report 2016-17


Business Responsibility Report

their community. Despite the social calculated in the manner specified in Is there any case led by any
constraints of domestic responsibilities Section 135 of the Companies Act, stakeholder against the Company
and mobility issues, these women 2013, read with rules thereunder). regarding unfair trade practices,
have participated and completed the irresponsible advertising and/or
training. Principle 9: Businesses anti-competitive behaviour during
should engage with and the last 5 years and pending as
Through our partnerships, we have provide value to their QPVJGGPFQHVJGſPCPEKCN[GCT!
been able to place more than 50 per customers in a responsible If so, provide details thereof, in
cent of our trainees in parlour chains manner approximately 50 words or so.
and local establishments. Nearly 40
per cent of our trainees have setup We are a customer-centric Company None.
their own salons or provide door- and attach considerable value to
to-door/specialised services. Few the trust, satisfaction and loyalty Did your Company carry out
trainees have built their confidence of our customers across the world. any consumer survey/consumer
and managed to find jobs by Our primary focus is to delight our satisfaction trends?
themselves and work full-time. These customers, both external and internal.
women are now able to articulate their Customer-centricity is part of Godrej Yes.
rights and some are better equipped Group’s Code of Conduct. We strive
to negotiate their rights at home and in to ensure that customer needs are
the community. satisfied and that our products and
services offer value to our customers.
Impact assessment of retail
management training: Our customer focus extends not only
More than 70 per cent of our trainees to external but also internal customers.
reported an increase in the quantity We firmly believe that external customer
of goods sold since completion of the satisfaction can be attained only if the
training. This in turn led to an increase needs and reasonable expectations
in their income. Most trainees also of internal customers are met. Our
reported that the training had been employees are strongly encouraged to
useful in improving their knowledge on act in accordance with this principle.
customer acquisition and retention.
What percentage of customer
Impact assessment of channel sales complaints/consumer cases are
for rural youth: pending as on the end of the
More than half of the trainees are ſPCPEKCN[GCT!
reported to still be working in a sales-
related position. Nearly 90 per cent of In our endeavour to strengthen our
them were employed in a full-time job. relationship with our stakeholders, we
More than 20 per cent of the trainees have addressed all feedback reported
have also been promoted in their jobs in the last financial year.
since the training.
Does the Company display product
What is your Company’s direct information on the product label,
contribution to community over and above what is mandated as
development projects? per local laws? Yes/No/NA/Remarks
(additional information).
In the year, the Company spent an
amount of `16.52 crore on CSR GCPL displays adequate information to
initiatives (2.02 per cent of average enable safe and effective usage of its
net profits of the last 3 financial years products.

Godrej Consumer Products Limited 113


Directors’
Report
Review of Operations and Other Disclosures 116

Annexures to the Directors' Report 125


Directors’
Report

Dear Members, disruptions, we continued to We were ranked the number 1


deliver a superior performance, FMCG Company to work for in
Your Directors, with pleasure, present
with a sales growth of 4 per the ‘Great Place to Work - Best
the Annual Report for the year ended
cent, and gaining share across Workplaces in India 2016’ list,
March 31, 2017.
most key brands. We also for the thirteenth year in a row.
1. Review of Operations sustained momentum on new We also ranked number 12 on
product development, with 5 key the ‘Great Place to Work - Best
Your Company has delivered
launches: aer pocket, BBLUNT Workplaces in Asia 2017’ list
another year of competitive and
Salon Secret, Cinthol Deostick, and among the best employers
profitable growth. Our focused in India, in the ‘Aon Hewitt Best
Good knight personal repellents,
approach and strong execution Employers in India - 2017’ survey.
and HIT Gel Stick. aer pocket
has enabled us to deliver an
has been a huge success, Pursuant to the notification issued
ahead-of-market performance
and our Good knight personal by the Ministry of Corporate Affairs
over the past few years. During
repellents range is receiving an dated February 16, 2015, your
the fiscal year 2016-17, we
encouraging response from trade Company has adopted Indian
consistently outperformed across
and consumers, particularly with Accounting Standards (“Ind AS”)
quarters, with a reported sales
innovative media campaigns. notified under the Companies
growth of 10 per cent (on a
Cinthol Deostick, both for men and (Indian Accounting Standards)
consolidated basis for the fiscal
women, has been well received Rules with effect from April 1,
year) and an EBITDA growth of 17
by consumers. We continue to 2016. Financial Statements for
per cent.
support this launch with innovative the year ended and as at March
In India, while demonetisation consumer engagement initiatives 31, 2016 have been restated to
resulted in some near-term and impactful communication. conform to Ind AS.

116 Annual Report 2016-17


Directors’ Report

The financial performance of your Company for the fiscal year under review is summarised as follows:

Financials ` (Crore)
Consolidated 5VCPFCNQPG
#DTKFIGF2TQſVCPF.QUU5VCVGOGPV
March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016
Total Revenue from Operations 9608.80 8753.06 5088.99 4883.40
Other Income 75.30 83.90 63.60 61.37
Total Income 9684.10 8836.96 5152.59 4944.77
Total Expenses including Depreciation and Finance Costs 7997.87 7336.88 4045.11 3996.55
Profit/ (Loss) before Exceptional items, Share of Profit of 1686.23 1500.08 1107.48 948.22
Equity Accounted lnvestees and Tax
Exceptional Items 0.08 -333.51 0.00 0.00
Share of Profit of Equity Accounted lnvestees (net of 0.82 0.10 0.00 0.00
income tax)
Profit/ (Loss) before Tax 1687.13 1166.67 1107.48 948.22
Tax Expense 379.16 336.05 259.45 225.55
Profit/ (Loss) after Tax 1307.97 830.62 848.03 722.67
Other Comprehensive Income -83.41 -70.93 -5.94 -1.61
Total Comprehensive Income for the period 1224.56 759.69 842.09 721.06
Net Profit/ (Loss) attributable to:
a) Owners of the company 1304.08 827.61 848.03 722.67
b) Non-Controlling interests 3.89 3.01 0 0
Total Comprehensive Income Attributable to:
a) Owners of the company 1220.67 756.68 842.09 721.06
b) Non-Controlling interests 3.89 3.01 0 0

2. Appropriation

Your Directors recommend appropriation as detailed as follows:

FY 2016-17 FY 2015-16
Appropriation
` (Crore) ` (Crore)
Surplus at the beginning of the year 2139.63 1619.57
Less: Remeasurements of defined benefit plans 5.19 1.61
Add: Net Profit for the year 848.03 722.67
Add: Transfer from Debenture Redemption Reserve - 24.39
Available for Appropriation 2982.47 2365.02
Less: Interim Dividends 195.78 187.27
Less: Tax on Distributed Profits 39.87 38.12
5WTRNWU%CTTKGF(QTYCTF 2746.82 2139.63

3. Changes in the holding se transfer among qualifying 4. Issue of bonus shares


structure of the Company persons. Consequently, your
The Board at its meeting held on
Company does not have any
During the fiscal year 2016-17, May 9, 2017, approved the issue
your Company’s holding company, holding company as on March of bonus shares in the ratio of 1:1,
Godrej & Boyce Manufacturing 31, 2017. However, the overall i.e. one bonus equity share of ` 1/-
Company Limited, transferred promoter shareholding has not each for every one fully paid-up
27.451 per cent of its equity changed, and it continues to equity share held. Furthermore,
stake to another promoter group stand at 63.27 per cent as at the Board approved the increase
company, Godrej Seeds & the year end, subsequent to this in authorised share capital,
Genetics Limited, as an inter- transaction. necessary to accommodate

Godrej Consumer Products Limited 117


the issue of bonus shares and the Company. These approvals Notice of the Annual General
consequent Alteration of the are subject to the shareholders’
Meeting (AGM), along with
Memorandum of Association approval and hence, have been
and Article of Association of set out as agenda items in the relevant explanatory statements.

5. Dividend

A. Dividend declared

For the fiscal year 2016-17, the following four interim dividends were declared on shares of a face value of ` 1/- each.
The details of the dividends are as follows:
Declared at Dividend rate per share on
Dividend Type Record Date
Board Meeting Dated UJCTGUQHHCEGXCNWG` 1 each
st
1 Interim for fiscal year 2016-17 July 29, 2016 ` 1.00 August 8, 2016
2nd Interim for fiscal year 2016-17 November 7, 2016 ` 1.00 November 16, 2016
3rd Interim for fiscal year 2016-17 January 30, 2017 ` 1.00 February 7, 2017
4th Interim for fiscal year 2016-17 May 9, 2017 ` 12.00 May 17, 2017
616#. ` 15.00

Your directors recommend that The Company’s Dividend & Independent Director,
the aforesaid interim dividends Distribution Policy may also be respectively, at the Board
aggregating to ` 15.00/- per accessed through the following Meeting held on January 30,
equity share, be declared as the link[1] 2017, with effect from April 1,
final dividend for the year ended 2017. As per the provisions of
6. Board of Directors
March 31, 2017. Section 160 of the Companies
A. Number of meetings, Act, 2013, your Company
Since your Company has
declarations, appointment of has received a notice from
adopted IND AS, accounting of
directors: a member specifying their
dividends will be done based
intention to propose the
on the payment of dividend and Four board meetings were
appointment of Mr. Pirojsha
hence, the 4th Interim Dividend of held during the year. The
Godrej and Ms. Ndidi Nwuneli
the fiscal year 2015-16 has been details of the meetings and
as Directors in the forthcoming
accounted for in the fiscal year the attendance record of the
AGM. Furthermore, a specific
2016-17. Similarly, the 4th Interim directors are in the Corporate
resolution is included in the
Dividend of the fiscal year 2016- Governance section of the
Notice of the AGM for the
17, will be accounted in the fiscal Annual Report.
appointment of Ms. Ndidi
year 2017-18.
All the Independent Directors Nwuneli as an Independent
B. Dividend Distribution Policy have given their declaration Director for a period of 5 years
of independence as required with effect from April 1, 2017.
The Board of Directors adopted
under Section 149(6) of the
the Dividend Distribution Policy Furthermore, the Board its
Companies Act, 2013. This has
pursuant to the SEBI (Listing meeting held on May 9, 2017,
been noted by the Board of
Obligations and Disclosure approved the changes in the
Directors.
Requirements) Regulations, 2015 leadership positions of the
(Regulations) which requires the Mr. Pirojsha Godrej and Ms. Company. Ms. Nisaba Godrej,
top 500 listed companies (by Ndidi Nwuneli were appointed who was an Executive Director,
market capitalisation) to formulate as Additional Non-Executive will now be the Executive
the same. Director and Additional Chairperson, and Mr. Adi

[1]
http://godrejcp.com/Resources/pdf/dividend_distribution_policy.pdf

118 Annual Report 2016-17


Directors’ Report

Godrej will assume the position Narendra Ambwani, Dr. Omkar (career development, work–life
of Chairman Emeritus with Goswami, Mr. Aman Mehta, balance, and recognition).
effect from May 10, 2017. In Mr. D Shivakumar, and Ms.
The Non-Executive Directors
addition, Mr. Vivek Gambhir, Ireena Vittal as members.
receive sitting fees and
Managing Director & CEO, Ms. Ndidi Nwuneli was also
commission in accordance
will now be designated as the appointed as a member of the
with the provisions of the
Managing Director and CEO. Audit Committee with effect
Companies Act, 2013.
from April 1, 2017, consequent
B. Familiarisation programmes:
to her appointment on the G. Remuneration to Directors:
Several familiarisation Board as the Additional &
The disclosure on the details
programmes for the Independent Director.
of remuneration to directors
Independent Directors were
D. Directors liable to retire by and other employees
conducted during the year
rotation: pursuant to Section 197
including updates on its long
read with Rule 5(1) of the
term business strategies, In the forthcoming AGM,
Companies (Appointment and
Latin America operations, Mr. Jamshyd Godrej and Mr.
Remuneration of Managerial
risk management, digital Nadir Godrej will retire by
Personnel) Rules, 2014 is
transformation strategies, rotation and will be considered
given under Annexure ‘C’.
R&D priorities, changes for re-appointment because of
in tax regulations, impact their eligibility. The information required under
of and strategy to counter Rule 5(2) and Rule 5(3) of the
demonetisation, brand E. Board Diversity Policy:
Companies (Appointment and
strategies for select product The Company has in place a Remuneration of Managerial
categories, etc. Apart from this Board Diversity Policy, which Personnel) Rules, 2014 is
there were quarterly business is attached as Annexure ‘A’. not being sent along with
presentations by Mr. Vivek The criteria for determining this Report. However, this
Gambhir, Managing Director qualification, positive annexure is available on the
& CEO and Mr. V Srinivasan, attributes, and independence Company website. Members
Chief Financial Officer & who are interested in obtaining
of directors are as per the
Company Secretary. these particulars may write
Board Diversity Policy,
Listing Regulations, and the to the Company Secretary
Further details of the
Companies Act, 2013. at the Registered Office of
familiarisation programmes
the Company. The aforesaid
may also be accessed through
F. Remuneration Policy: annexure is also available for
the following link[2]
The Company’s Remuneration inspection at the Registered
C. Audit Committee of the Office of the Company during
Policy for Directors, Key
Board of Directors: working hours, up to the date
Managerial Personnel, and
other employees is attached of the AGM.
Your Company has an Audit
Committee in compliance as Annexure ‘B’. The Mr. Adi Godrej, Chairman;
with Section 177 of the Company’s total rewards Ms. Nisaba Godrej, Executive
Companies Act, 2013 and framework aims at holistically Director; and Mr. Vivek
Listing Regulations. The using elements such as fixed Gambhir, Managing Director
Committee consists entirely and variable compensation, & CEO receive remuneration
of the Independent Directors: long-term incentives, benefits from your Company. Godrej
Mr. Bharat Doshi as Chairman and perquisites, and non- & Boyce Manufacturing
of the Committee and Mr. compensation elements Company Limited was the
[2]
http://godrejcp.com/Resources/uploads/compliance_other_updates/FamiliarisationProgrammeforIDs201617.pdf

Godrej Consumer Products Limited 119


holding company of your   zIndividual Committees identified areas that show
Company till March 30, 2017. scope for improvement. The
  zIndividual Board Members
Mr. Adi Godrej receives Board Committees and Board
commission from Godrej   zChairman Members’ feedback was
& Boyce Manufacturing shared with the Chairman.
The criteria for Board
Company Limited. Following his evaluation, a
processes included Board
Chairman’s Feedback Report
H. Performance evaluation of composition, strategic
was also compiled.
the Board of Directors, its orientation, and team
individual members, and its dynamics. The criteria for I. Directors’ Responsibility
Committees evaluation of the Board Statement
Committees covered whether
A formal Board Effectiveness Pursuant to the provisions
the Committee has well
Review was conducted as contained in Section 134(5)
defined objectives, whether it
part of our efforts to evaluate of the Companies Act, 2013,
has the correct composition,
the performance of the Board your Directors, based on the
and identify areas that need and whether it achieves its
representation received from
improvement, and thus, objectives. The criteria for
the Operating Management,
enhance the effectiveness of evaluation of all the individual
and after due inquiry, confirm
the Board, its Committees, and Directors included skills,
the following:
Individual Directors. This was experience, and level of
in line with the requirements of preparedness of the Directors, a) In the preparation of the
the Companies Act, 2013 and attendance and extent of annual accounts, the
the Listing Regulations. contribution to Board debates applicable accounting
and discussion, and how the standards have been
The Corporate HR team of Director leverages his/her followed and no material
Godrej Industries Limited and expertise and networks to departures have been
Associate Companies (GILAC) meaningfully contribute to the made from the same;
worked directly with the
Company. The criteria for the
Chairman and the Nomination b) They have selected such
Chairman’s evaluation included
& Remuneration Committee accounting policies and
leadership style and conduct
of the Board, to design applied them consistently
of Board meetings.
and execute this process, and made judgments
which was adopted by the The following reports were and estimates that are
Board. Each Board Member created as part of the reasonable and prudent so
completed a confidential online evaluation: as to give a true and fair
questionnaire, providing vital view of the state of affairs of
  zBoard Feedback Report
feedback on how the Board the Company at the end of
currently operates and how   zIndividual Board Member the financial year and of the
its effectiveness could be Feedback Report profit of the Company for
improved. that period;
  zChairman’s Feedback
The survey comprised four Report c) They have taken proper
sections and compiled and sufficient care for
The overall Board Feedback
feedback and suggestions on the maintenance of
Report was facilitated by
the following criteria:
Mr. Bharat Doshi with the adequate accounting
  zBoard Processes (including Independent Directors. records in accordance
Board composition, The Directors were vocal with the provisions of the
strategic orientation, and about the Board functioning Companies Act, 2013
team dynamics) effectively, but they also for safeguarding the

120 Annual Report 2016-17


Directors’ Report

assets of the Company Investors tab, on the ‘Codes Strength of Nature (SON), a
and for preventing and and Policies’ page. leading hair care company, to
detecting fraud and other accelerate growth in Africa.
The RPT Policy may also be
irregularities; SON is a US-based company
accessed through the following
with a strong global presence.
d) They have prepared the link[3]
It has a compelling portfolio
annual accounts on a going
Apart from the Related Party of leading hair care brands
concern basis;
Transactions in the ordinary with affordable and innovative
e) They have laid down course of business and at products and has been
internal financial controls arm’s length transactions, serving women of African
to be followed by the the details of which are given descent across 50 countries.
Company, and such internal in the notes to the financial The acquisition enables your
financial controls are Company to turbo-charge,
statements, no other Related
adequate and operating creating a strong platform for
Party Transactions require
effectively; Wet Hair Care products in
disclosure in the Directors’
f) They have devised a Report, for compliance Africa and to forge a stronger
proper system to ensure with Section 134(3)(h) of presence in the global Wet
compliance with the the Companies Act, 2013. Hair Care category USD 1.8
provisions of all applicable Therefore, a Nil Report is billion. SON complements your
laws, and this system is attached as Annexure ‘D’ in Company’s portfolio in Africa,
adequate and operating the format prescribed (i.e. building on its leadership
effectively. Form AOC-2). position in Dry Hair Care
and hair colour products in
7. Finance 8. Subsidiaries and Associates the region. This investment
A. Particulars of loans, A. Report of acquisitions catapults your Company,
guarantees, and investments completed during the year making it one of the largest
global players, serving the
The details of loans, During the year, the following hair care needs of women of
guarantees, and investments acquisitions were completed African descent. It will, over
as required by the provisions by your Company: time, provide a platform to
of Section 186 of the
Canon Chemicals Limited, further build and drive global
Companies Act, 2013 and
a Kenya-based home and leadership.
the rules made thereunder
are set out in the Notes to personal care company, During the year, your
the Standalone Financial manufactures and distributes Company, through its
Statements of the Company. products in the personal subsidiary, increased its stake
and home care categories. in Hair Credentials Zambia,
B. Related Party Transactions This acquisition helps a company formed to start
and Policy your Company in further the hair extension business
In compliance with the Listing strengthening its presence in Zambia, from 51 per cent
Regulations, the Company has in the sub-Saharan African to 100 per cent. Furthermore,
a policy for transactions with market. This acquisition is in your Company, through its
Related Parties (RPT Policy). line with your Company’s global subsidiary, increased its equity
The RPT Policy is available 3 by 3 strategy of targeting stake from 51 per cent to 100
on the Company website viz. strong regional assets in the per cent in Charm Industries
www.godrejcp.com, under the emerging world. Limited, Kenya, and increased

[3]
http://www.godrejcp.com/Resources/pdf/Related-Party-Transactions-Policy.pdf

Godrej Consumer Products Limited 121


its stake to 100% in Weave While the Review of Operations Latin America and UK
Senegal Limited, a newly section mentions details
Despite a challenging
formed company to start the about the performance of your
macroeconomic environment,
hair and skin care business in Company’s India Business, our Latin America business
Senegal. we provide brief details on the grew by 19 per cent in
B. Names of companies which performance of other clusters constant currency terms.
have become or ceased to be below: We continued to focus on
subsidiaries, joint ventures, innovation and effective
Indonesia
or associates during the communication campaigns to
year: Our Indonesia business drive growth. Our UK business
delivered a mixed sales remained flat on a constant
During the year, the following
growth. While the Household currency basis in a challenging
companies became
Insecticides portfolio declined operating environment.
subsidiaries of your Company:
due to a poor season, the rest A report on the performance
S
ztrength of Nature LLC
of the portfolio grew strongly. and financial position of each
(USA)
The overall portfolio sales were of the subsidiary, associate,
Canon Chemicals Ltd.
z the same as the previous year and joint venture companies
zWeave Senegal Ltd. in constant currency terms. has been provided after
Strength of Nature South
z the Consolidated Financial
During the last quarter of
Africa Proprietary Limited Statement section of the
the year, we cross-pollinated Annual Report in Form AOC-1.
Old Pro International Inc
z
the aer pocket bathroom air
(USA) Pursuant to the provisions of
freshener to Indonesia, and
zDGH Uganda Section 136 of the Companies
launched Stella pocket. In
Act, 2013, your Company
Style Industries Uganda
z July 2016, we cross-pollinated
has placed the financial
Limited hair colours in Indonesia with
statements of its subsidiaries
Godrej Consumer Products
z the launch of NYU crème hair
on the Company website www.
International FZCO, (Dubai, colour in a sachet format.
godrejcp.com.
UAE)
Africa D. Policy on Material
Godrej International Trading
z
Last year, we saw muted Subsidiaries:
Company (Sharjah, UAE)
economic growth in certain key In compliance with the
DGH Angola ceased to be a
countries, such as South Africa Listing Regulations, the
subsidiary of your Company
and Nigeria. We bucked the Board has adopted a policy
during the year.
trend and grew the business for determining material
C. Report on the performance strongly with a constant subsidiaries. This policy is
of the subsidiaries and currency sales growth of 22 available on the Company
associates: per cent. We also acquired the website www.godrejcp.com,
Strength of Nature business under the Investors tab, on the
Business details of the key
‘Codes and Policies’ page.
subsidiaries are given in the this year and are focusing on
Management Discussion & leveraging this acquisition to The policy may also be
Analysis section of the turbocharge our wet hair care accessed through the following
Annual Report. portfolio growth in Africa. link[4]

[4]
http://www.godrejcp.com/Resources/pdf/Policy-on-Material-Subsidiaries.pdf

122 Annual Report 2016-17


Directors’ Report

9. The Sexual Harassment Act, 2013 read with the Mr. V Swaminathan, Head-
of Women at Workplace Companies (Accounts) Rules, Corporate Audit & Assurance
(Prevention, Prohibition, and 2014, which forms a part of the has been appointed as the
Redressal) Act, 2013 Directors’ Report. “Whistle Blowing Officer”
and his contact details have
In compliance with Section 4(3) C. Risk Management
been mentioned in the Policy.
of the Sexual Harassment of
Elements of risks to the Furthermore, employees are
Women at Workplace (Prevention,
Company are listed in the also free to communicate
Prohibition, and Redressal) Act,
Management Discussion & their complaints directly to the
2013, your Company reconstituted
Analysis section of the Annual Chairman/Member of the Audit
its ‘Internal Complaints Committee’
Report under the heading Committee, as stated in the
(Committee), during the year.
‘Enterprise Business Risk Policy. The Policy is available
During the year, e-learning
Management’. on the internal employee
workshops were conducted to
portal.
create awareness about sexual D. Corporate Social
harassment among employees. Responsibility On a quarterly basis, the Audit
Committee reviews reports
Because there were no complaints Your Company has a well-
made under this policy and
during the year, the Committee documented Corporate Social
implements corrective actions,
filed a NIL complaints report with Responsibility (CSR) Policy.
wherever necessary.
the concerned authorities, in Details of CSR projects are
provided in #PPGZWTGŎ)ŏ in F. Employee Stock Grant Scheme
compliance with Section 22 of the
above-mentioned Act. the prescribed format.
The details of the grants
E. Vigil Mechanism allotted under Godrej
10. Policies and Annexures
Consumer Products Limited
Your Company has adopted a Employee Stock Grant
A. Extract of Annual Return
Whistle Blower Policy as a part Scheme, 2011 as also the
Annexure ‘E’ to this Report of its Vigil Mechanism. disclosures in compliance with
provides the Extract of SEBI (Share Based Employee
The purpose of the policy is Benefits) Regulations, 2014,
Annual Return to be filed
to enable employees to raise and Section 62 1(b) read with
by the company under the
concerns about unacceptable Rule 12(9) of the Companies
Companies Act, 2013.
improper practices and/ (Share Capital & Debentures)
B. Disclosure on Conservation or any unethical practices Rules, 2014 are set out in
Annexure ‘H’.
of Energy, Technology in the organisation without
Absorption, Foreign the knowledge of the Your Company has not given
Exchange Earnings, and management. All employees loan to any person under any
shall be protected from any scheme for or in connection
Outgo
adverse action for reporting with the subscription or
  #PPGZWTGŎ(ŏ to this Report purchase of shares in the
any unacceptable or improper
provides information on Company or the holding
practice and/or any unethical
Company. Hence, there are
the conservation of energy, practice, fraud or violation of
no disclosures on voting rights
technology absorption, and any law, rule, or regulation. not directly exercised by the
foreign exchange earnings and This Policy is also be employees with respect to the
outgo, required under Section applicable to the Directors of shares to which the scheme
134 (3)(m) of the Companies the Company. relates.

Godrej Consumer Products Limited 123


11. Unclaimed shares

In compliance with the Listing Regulations, your Company has transferred the unclaimed shares into a demat
account, namely the ‘Unclaimed-Suspense Account’. As and when an allottee approaches the Company, after proper
verification, the shares are rematerialised and physical certificates are delivered to the allottee.
Particulars No. of Shareholders No. of Shares
Aggregate number of shareholders and the outstanding shares lying in the 5,658 858,185
Unclaimed-Suspense Account at the beginning of the year
Number of shareholders and aggregate shares transferred to Unclaimed- - -
Suspense Account during the year
Number of shareholders who approached the issuer for transfer of shares 109 23,240
from the Unclaimed-Suspense Account during the year and aggregate shares
transferred
Number of shareholders to whom shares were transferred from the Unclaimed- 109 23,240
Suspense Account during the year and the aggregate shares transferred
Aggregate number of shareholders and the outstanding shares lying in the
5,549 834,945
Unclaimed-Suspense Account at the end of the year

12. Listing of the Company since Accordingly, this item has been
incorporation in the year 2000. included in the Notice of the
The shares of your Company are
AGM for the approval of the
listed at the BSE Limited and the Hence, pursuant to the
shareholders.
National Stock Exchange of India provisions of the Companies
Limited. Act, 2013, the Company The Board places on
The applicable annual listing is required to appoint new record, its appreciation
fees have been paid to the Stock Statutory Auditors. of the contribution of M/s
Exchanges before the due dates. Kalyaniwalla & Mistry LLP,
The Audit Committee at its
Chartered Accountants, during
Your Company is also listed on the Meeting held on November 7,
their tenure as the Statutory
Futures & Options Segment of the 2016, unanimously approved
National Stock Exchange of India. Auditors of the Company.
to recommend to the Board,
13. Auditors and Auditors’ Report the appointment of The notes to the Accounts
B S R & Co, LLP, Chartered referred to in the Auditors’
A. Statutory Auditors Accountants (Firm Regn. No. Report are self-explanatory
In accordance with Section 101248W/W-100022) as the and therefore, do not warrant
139 of the Companies Act, new statutory auditors to hold any further explanation.
2013 and the rules made office from the conclusion of
B. Cost Auditors
thereunder, M/s Kalyaniwalla the 17th AGM on July 31, 2017
& Mistry LLP, Chartered (i.e. the forthcoming AGM), Pursuant to directions from
Accountants (Firm Regn. No. until the conclusion of the the Department of Company
104607W/W100166), Mumbai, 22nd AGM in the year 2022, Affairs, M/s. P. M. Nanabhoy &
were appointed as Statutory at a remuneration as may be Co., Cost Accountants, were
Auditors to hold office from the approved by the Board. B S appointed as cost auditors for
conclusion of the 14th AGM R & Co. LLP has access to the applicable products of the
till the conclusion of the 17th the international knowledge Company for the fiscal year
AGM (i.e. the forthcoming and methodology of KPMG 2016-17. They are required to
AGM of the Company). M/s International. The Board, at its submit the report to the Central
Kalyaniwalla & Mistry LLP, meeting held on May 9, 2017, Government within 180 days
Chartered Accountants have approved the recommendation from the end of the accounting
been the Statutory Auditors of the Audit Committee. year.

124 Annual Report 2016-17


Directors’ Report

C. Secretarial Auditors The SVG1 rating is on a scale not discriminate on the grounds of
of SVG1 to SVG6, where SVG1 nationality, race, colour, religion,
The Board had appointed A. caste, gender, gender identity or
denotes the highest rating. The
N. Ramani & Co., Company SVG1 rating implies that in ICRA’s expression, sexual orientation,
Secretaries, Practising current opinion, the company disability, age, or marital status.
Company Secretary, to belongs to the highest category The Company recognises merit
conduct a secretarial audit for of the composite parameters of and continuously seeks to enhance
the fiscal year 2016-17. The stakeholder value creation and the effectiveness of its Board. The
Secretarial Audit Report for the management as well as corporate Company believes that for effective
fiscal year ended March 31, governance practices. corporate governance, the Board
should have the appropriate balance
2017, is attached herewith as Pursuant to the Listing
of skills, experience, and diversity of
Annexure ‘I’. The Secretarial Regulations, the Management
perspectives.
Audit Report does not contain Discussion & Analysis Report
any qualification, reservation, and the Report on Corporate Board appointments will be made on
or adverse remark. Governance are included a merit basis and candidates will be
in the Annual Report. The considered on the basis of objective
14. Corporate Governance Auditors’ Certificate certifying criteria, with due regard for the
Your Company continues to enjoy the Company’s compliance with benefits of diversity on the Board. The
a Corporate Governance Rating the requirements of Corporate Board believes that such merit-based
of CGR2+ (pronounced CGR 2 Governance, in terms of the appointments will best enable the
plus) and a Stakeholder Value Listing Regulations, is attached as Company to serve its stakeholders.
Creation and Governance Rating Annexure ‘J’.
The Board will regularly review this
of SVG1 (pronounced SVG one). 15. Acknowledgement policy to ensure its effectiveness.
The ‘+’ sign indicates a relatively
high standing within the category Your Directors wish to extend their ANNEXURE ‘B’
indicated by the rating. The sincere thanks to the Central and
State Governments as well as the GCPL TOTAL REWARDS POLICY
aforementioned ratings are on
a scale of 1 to 6, where 1 is the Government agencies, banks,
GCPL’s Total Rewards Framework
customers, shareholders, vendors,
highest rating. The two ratings aims at holistically using elements
and other related organisations
indicate whether a company such as fixed and variable
that have helped in your
is being run on the principles compensation, long-term incentives,
Company’s progress, as partners,
of Corporate Governance and benefits and perquisites, and non-
through their continued support
whether the practices followed compensation elements (career
and co-operation.
by the Company lead to value development, work-life balance, and
creation for all its shareholders. For and on behalf of the Board of
recognition).
Directors
The CGR2 rating is on a scale Highlights
sd/-
of CGR1 to CGR6, where CGR1
Adi Godrej
denotes the highest rating. The The rewards framework offers
Chairman
CGR2+ rating implies that in employees the flexibility to customise
ICRA’s current opinion, the rated Mumbai, May 9, 2017 different elements based on need.
company has adopted and follows ANNEXURE ‘A’ The framework is also integrated
such practices, conventions, with GCPL’s performance and
BOARD DIVERSITY POLICY talent management processes
and codes as would provide its
financial stakeholders a high level The Company is committed to and is designed to ensure sharply
of assurance of the quality of equality of opportunity in all differentiated rewards for our best
corporate governance. aspects of its business and does performers.

Godrej Consumer Products Limited 125


The total compensation for a given 3. ‘Variable Compensation Leadership Forum members. Under
position is influenced by the following (Performance Linked Variable this scheme, performance-based
three factors: position, performance, Remuneration)’ comprising stock grants are awarded. The value
and potential. As a broad principle, employee rewards for of the stock grant is proposed by the
for high performers and potential delivering superior business management and approved by the
employees, GCPL strives to deliver results and individual Compensation Committee.
total compensation at the 90th performance. It is designed to
ANNEXURE ‘C’
percentile of the market. provide a significant upside
earning potential without cap Information pursuant to Section
Total Cash Compensation
for over-achieving business 197(12) of the Companies Act,
The employees’ total cash results. It has a ‘Collective’ 2013 read with Rule 5(1) of the
compensation has the following three component, linked to the Companies (Appointment and
components: achievement of specified Remuneration of Managerial
business results, measured Personnel) Rules, 2014
1. ‘Fixed Compensation’ by ‘Economic Value Added’ or
comprising the basic salary other related metrics, relative (i) The ratio of the remuneration
and retirement benefits like to the target set for a given of each director to the median
provident fund and gratuity. fiscal year and an ‘Individual’ remuneration of the employees of
component, based on the Company for the fiscal year
2. ‘Flexible Compensation’
Employee’s performance, as 2016-17; the percentage increase
comprising a fixed pre-
measured by the performance in the remuneration of each
determined component of the
management process. Director, Chief Financial Officer
employees’ compensation.
& Company Secretary during
Employees can allocate Long-Term Incentives (Employee the fiscal year 2016-17; and the
this amount to different Stock Grant Scheme) comparison of remuneration of
components, as per their
each Key Managerial Personnel
grade eligibility, defined at the This scheme aims at driving a culture
(KMP) against the performance of
start of each fiscal year. of ownership and focus on long-term
results. It is applicable to Godrej the Company are as follows:

A. Whole-time Directors and Chief Financial Officer & Company Secretary

4CVKQQHTGOWPGTCVKQPQHGCEJ
Per cent increase in
5T &KTGEVQTVQVJGOGFKCPTGOWPGTCVKQP
0COGQHVJG-/2 Designation TGOWPGTCVKQPKPVJGſUECN
No. RCKFRC[CDNGVQCNNGORNQ[GGUHQT
year (FY) 2016-17
ſUECN[GCT
1 Adi Godrej Chairman (26) 325.06
2 Nisaba Godrej Executive Director (15) 121.75
3 Vivek Gambhir Managing Director & CEO (18) 377.07
4 V Srinivasan Chief Financial Officer & (15) Not Applicable
Company Secretary

Remuneration includes the actual performance linked variable remuneration payable for the fiscal year on the basis
of performance, profitability and optimum utilisation of capital.

D. Non-Executive Directors
5T 0COGQHVJG&KTGEVQT Per cent increase in 4CVKQQHTGOWPGTCVKQPQHGCEJ&KTGEVQTVQ
No. TGOWPGTCVKQPKPVJGſUECN[GCT VJGOGFKCPTGOWPGTCVKQPRCKFRC[CDNGVQCNN
2016-17 GORNQ[GGUHQTſUECN[GCT
1 Jamshyd Godrej Nil 4.49
2 Nadir Godrej Nil 4.49
3 Tanya Dubash Nil 4.49
4 Narendra Ambwani Nil 4.96
5 Bharat Doshi Nil 4.96
6 Omkar Goswami Nil 4.96
7 Aman Mehta Nil 4.96
8 D Shivakumar Nil 4.96
9 Ireena Vittal Nil 4.96

126 Annual Report 2016-17


Directors’ Report

Note: managerial personnel in the last transactions in notes to accounts.


fiscal year and its comparison The Non-Executive Directors are
(i) As per the approval received
with the percentile increase in also eligible for sitting fees of ` 1
from the shareholders at the AGM
the managerial remuneration and lakh per Board meeting attended
held on July 28, 2014, the Non-
justification thereof: and ` 20,000 per Committee
Executive Directors are entitled to
meeting attended. There is no
a Commission on Profits at a rate Total managerial remuneration
increase in the base remuneration
not exceeding 1 per cent of the comprises the remuneration of
payable to the Non-Executive
net profits subject to a maximum the Whole-time Directors and
Directors. However, compared
of ` 15 lakhs per director, for a commission paid to Non-Executive
with the previous year, the actual
period of 3 fiscal years beginning Directors. The Whole-time
sitting fees paid have varied
from 2014-15. Directors’ remuneration is as per
in case of some of the Non-
the resolution approved by the
(ii) Median remuneration of all the Executive Directors according to
shareholders and will not exceed
employees of the Company for the the meetings attended.
5 per cent of the Company’s
fiscal year 2016-17: ` 4.23 lakh.
net profits as permitted by the The average percentile change
(iii) The percentage increase in Companies Act, 2013. The in the salary of employees other
the median remuneration of shareholders have approved than managerial personnel is
employees in the fiscal year: Commission on Profits to Non- a decrease of 9 per cent while
9.59 per cent. Executive Directors at a rate not that of Managerial Personnel is a
exceeding 1 per cent of the net decline of 14 per cent.
(iv) The number of permanent
profit, subject to a maximum
employees on the payrolls of the Decline is largely on account
amount of ` 15 lakh per Director.
Company as on March 31, 2017 of performance linked variable
Remuneration does not include
2,457. remuneration.
lease rent paid to Ms Tanya
(v) The average percentile increase Dubash and Ms Nisaba Godrej, (vi) Remuneration is as per the
already made in the salaries of the details of which are given remuneration policy of the
the employees other than the separately in related party Company.

Godrej Consumer Products Limited 127


#00':74'Ŏ&ŏ
Form AOC-2
Form for 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.
1 Details of contracts or arrangements or transactions not at arm’s length basis NIL
a Name(s) of the related party and nature of relationship
b Nature of the contracts or arrangements or transactions
c Duration of the contracts or arrangements or transactions
d Salient terms of the contracts or arrangements or transactions including the value, if any
e Justification for entering into such contracts or arrangements or transactions
f Date(s) of approval by the Board
g Amount paid as advances, if any
h Date on which the special resolution was passed in general meeting as required under first
proviso to section 188
2 Details of material contracts or arrangement or transactions at arm’s length basis NIL
a Name(s) of the related party and nature of relationship
b Nature of contracts or arrangements or transactions
c Duration of the contracts or arrangements or transactions
d Salient terms of the contracts or arrangements or transactions including the value, if any
e Date(s) of approval by the Board, if any
f Amount paid as advances, if any

For Godrej Consumer Products Limited


sd/-
Adi Godrej
Chairman

128 Annual Report 2016-17


Directors’ Report

Annexure ‘E’
EXTRACT OF ANNUAL RETURN IN FORM MGT-9
as on March 31, 2017
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I 4')+564#6+10#0&16*'4&'6#+.5
a CIN L24246MH2000PLC129806
Registration date 29-November-2000 (Date of Incorporation)
15-December-2000 (Date of Commencement of Business)
Name of the Company Godrej Consumer Products Limited
b Category/Sub Category Public Company having Share Capital
c Listing Status, if applicable (1) Listed on BSE Ltd and The National Stock Exchange of
India Limited
(2) Listed on the Futures & Options (F&O) segment of The
National Stock Exchange of India Limited
d Company’s registered office address and contact details Godrej Consumer Products Limited
Godrej One, 4th Floor, Pirojshanagar, Eastern Express
Highway, Vikhroli (E), Mumbai- 400 079,
Maharashtra, India
Email: investor.relations@godrejcp.com
Phone: +91 22 - 25188010/20/30
Fax: +91 22 - 25188040
e Registrar & Transfer Agent’s Name, Address and contact Computech Sharecap Limited,
details 147, Mahatma Gandhi Road,
Opp Jehangir Art Gallery, Fort, Mumbai - 400 001, India
Telephone: 022 - 22635000/5001
Fax: 022 - 22635005
Email: gcpl@computechsharecap.in

II 24+0%+2#.$75+0'55#%6+8+6+'51(6*'%1/2#0; all business activities contributing 10% or more of the total turnover
of the Company shall be stated:
NIC Code of the Product/ % to total turnover of the
Name and Description of main products / services
service Company
1 Household Insecticides 20211 45%
2 Soaps 20231 30%
3 Hair Colours 20236 11%

III 2#46+%7.#451(*1.&+0)57$5+&+#4;#0& Annexure ‘E-1’


#551%+#6'%1/2#0+'5
+8 5*#4'*1.&+0)2#66'40 (Equity Share Capital Breakup as Annexure ‘E-2’
percentage of Total Equity)
8 INDEBTEDNESS- Indebtedness of the Company including interest outstanding/accrued but not due for payment:

` (Crore)
5GEWTGF.QCPGZENWFKPI 7PUGEWTGF Total
Deposits
deposits .QCPU indebtedness
+PFGDVGFPGUUCVVJGDGIKPPKPIQHVJGſPCPEKCN[GCT
(i)    Principal amount - 2.75 - 2.75
(ii)   Interest due but not paid - - - -
(iii)  Interest accrued but not due - - - -
Total (i+ii+iii) 0.00 2.75 0.00 2.75
Changes in Indebtedness during the financial year
·         Addition 0.00 400.00 0.00 400.00
·         Reduction 0.00 (252.75) 0.00 (252.75)
Net Change 0.00 147.25 0.00 147.25
+PFGDVGFPGUUCVVJGGPFQHVJGſPCPEKCN[GCT
(i)  Principal amount 0.00 150.00 0.00 150.00
(ii) Interest due but not paid - - - -
(iii) Interest accrued but not due - - - -
Total (i+ii+iii) 0.00 150.00 0.00 150.00

Godrej Consumer Products Limited 129


VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
 # 4GOWPGTCVKQPVQ/&96&/CPCIGTCPF4GOWPGTCVKQPVQ-/2QVJGTVJCP/&/CPCIGT96&
%'1%5%(1
` (Crore)
0COGQH/& -/2QVJGTVJCP/&
96&/CPCIGT 96&/CPCIGT
5T Total
2CTVKEWNCTUQH4GOWPGTCVKQP 8KXGM
No. #FK)QFTGL Nisaba #OQWPV 85TKPKXCUCP Total
)CODJKT

96& )QFTGL
96&
%(1%5 #OQWPV

/&%'1
1 )TQUUUCNCT[
(a) Salary as per provisions 13.10 4.83 12.72 30.65 2.34 2.34
contained in Section 17(1) of the
Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) 0.44 0.00 0.00 0.44 0.00 0.00
of the Income Tax
Act, 1961
(c) Profits in lieu of salary u/s 0.00 0.00 0.00 0.00 0.00 0.00
17(3) of the Income Tax Act, 1961
2 Stock Option 0.00 0.00 2.91 2.91 0.14 0.14
3 Sweat Equity 0.00 0.00 0.00 0.00 0.00 0.00
4 Commission 0.00 0.00 0.00 0.00 0.00 0.00
- as % of profit
- others, specify…
5 Others (Company’s Contribution 0.21 0.32 0.32 0.85 0.16 0.16
to PF, Reimbursements)
Total (A) 13.75 5.15 15.95 34.85 2.64 2.64
Ceiling as per the Act 55.08 55.08 55.08 121.17 NA NA

B. Remuneration to Indepdendent/other Non-Executive Directors


` ( Crore)
0COGUQHQVJGT0QP'ZGEWVKXG
0COGUQH+PFGRGPFGPV&KTGEVQTU
5T 2CTVKEWNCTUQH Directors
Total
No. 4GOWPGTCVKQP Narendra Bharat 1OMCT #OCP D Ireena ,COUJ[F Nadir Tanya
#ODYCPK Doshi )QUYCOK Mehta 5JKXCMWOCT 8KVVCN )QFTGL )QFTGL &WDCUJ
1 Sitting Fees 0.06 0.06 0.06 0.06 0.06 0.06 0.04 0.04 0.04 0.48
2 Commission 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 1.35
3 Others - - - - - - - - -
Total (B) 0.21 0.21 0.21 0.21 0.21 0.21 0.19 0.19 0.19 1.83

6QVCN/CPCIGTKCN4GOWPGTCVKQP
# $  36.68
Ceiling as per the Act 121.17

VII PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES


Details of
5GEVKQPQH #WVJQTKV[
Brief Penalty / #RRGCNOCFG
VJG%QORCPKGU =4&0%.6
Type Description 2WPKUJOGPV if any (give
Act / COURT]
%QORQWPFKPI Details)
HGGUKORQUGF
#%QORCP[
Penalty
NIL
Punishment
Compounding
B. Directors
Penalty
NIL
Punishment
Compounding
%1VJGT1HſEGTU+P&GHCWNV
Penalty
NIL
Punishment
Compounding

130 Annual Report 2016-17


ANNEXURE ‘E-1’

*QNFKPI
5T Effective Applicable
0COGQHVJG%QORCP[ #FFTGUUQHVJG%QORCP[ %+0).0 5WDUKFKCT[
No. Control 5GEVKQP
/Associate
1 Godrej Household Products Lanka Pvt Ltd No 7 C, Post Masters Place, Off 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Templers Road,
Mount Lavinia, Sri Lanka
2 Godrej Household Products Bangladesh Pvt Ltd Concord Madhumoti Plaza, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Level-10, Plot No. 11, Road No.11,
3 Godrej Consumer Products Bangladesh Ltd 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Block-G, Banani, Dhaka-1213,
Bangladesh
4 Godrej South Africa (Proprietary) Limited 11 Young Road, Pinetown 3610 100.00% NA-Foreign Company Subsidiary 2(87)(ii)

Godrej Consumer Products Limited


5 Godrej Netherlands B.V. SGG Netherlands, Amerika 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Building, Hoogoorddreef 15, 1101
BA Amsterdam
6 Godrej (UK) Limited 1st Floor, Falcon House, 115- 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
(Erstwhile Godrej Consumer Products (UK) Ltd.) 123, Staines Road, Hounslow,
7 Godrej Consumer Products (UK) Ltd. Middlesex, TW3 3LL 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
(Erstwhile Keyline Brands Limited)
8 Godrej Consumer Investments (Chile) Spa Vargas Fontecilla 3830, Quinta 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
9 Godrej Holding (Chile) Limitada Normal, RM, Santiago, Chile 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
10 Cosmetica Nacional 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
11 Plasticos Nacional Vargas Fontecilla 3984, Quinta 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Normal, RM Santiago, Chile
12 Godrej Consumer Products Mauritius Limited C/O Cim Corporate Services Ltd, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
Cavell Street, Port Louis, Republic
Of Mauritius
13 Godrej Nigeria Ltd Plot No 2A, Ayodele Diyan Street, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Ikeja, Lagos, Nigeria
14 Godrej Hair Care Nigeria Limited 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
15 Godrej Household Insecticide Nigeria Ltd 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
16 Godrej Hair Weave Nigeria Ltd 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
17 Panamar Produccioness S.A Empedrado 2435 – Ciudad 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
18 Argencos S.A Autónoma de Buenos Aires – 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
19 Laboratoria Cuenca S.A Argentina 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
20 Consell S.A 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
21 Deciral S.A Calle Osvaldo Cruz 5398 Codigo 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Postal 12200 – Montevideo -
Uruguay
22 Issue Group Brazil Limited Rod. João Leopoldo Jacomel 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
12475 – Sl 02 -Pinhais (Cep 83323-
4100) – Parana - Brazil
Directors’ Report

131
132
*QNFKPI
5T Effective Applicable
0COGQHVJG%QORCP[ #FFTGUUQHVJG%QORCP[ %+0).0 5WDUKFKCT[
No. Control 5GEVKQP
/Associate
23 Godrej Consumer Products Holding (Mauritius) C/O Cim Corporate Services Ltd, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Limited Les Cascades Building, Edith
24 Godrej Indonesia IP Holdings Ltd Cavell Street, Port Louis, Republic 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
25 Godrej Consumer Products US Holding Limited Of Mauritius 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
26 Godrej Mid East Holdings Limited Unit 15161, Level 15, The Gate 100.00% NA-Foreign Company Subsidiary
Building, Dubai International
Financial Centre, PO Box 506997,
Dubai, UAE
27 Godrej Global Mid East FZE B2-23, PO Box. 7966, Sharjah 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Airport International Free Zone,
Sharjah, UAE
28 Indovest Capital limited Portcullis Trustnet (Labuan) Limited, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Level 6(D), Main Office Tower,
Financial Park Labuan Comple
Jalan Merdeka 87000 Labuan F. T.,
Malaysia
29 Godrej Consumer Products Dutch Cooperatief SGG Netherlands, Amerika 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
U.A Building, Hoogoorddreef 15, 1101
30 Godrej Consumer Products (Netherlands) B.V. BA Amsterdam 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
31 Godrej Consumer Holdings (Netherlands) B.V. 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
32 PT Indomas Susemi Jaya Jl. Raya Narogong KM. 15 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Kampung Ciketing Barat RT.003
RW.001, Ciketing Udik Bantar
Gebang Bekasi 17153
33 PT Intrasari Raya Jl. Pancasila IV Cicadas Raya KM. 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
9 Gunung Putri, Bogor 16965
34 PT Megasari Makmur Jl. Pancasila V RT.04 RW.13 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cicadas Gunung Putri, Bogor
16965
35 PT Ekamas Sarijaya Jl. Raya Narogong Paal 10 RT.02 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
RW.03 Limus Nunggal
Cileungsi Bogor 16965
36 PT Sarico Indah Jl. Pancasila IV RT.02 RW.04 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cicadas Gunung Putri, Bogor
16965
37 Godrej Mauritius Africa Holdings Limited C/O Cim Corporate Services Ltd 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
38 Darling Trading Company Mauritius Ltd. 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cavell Street, Port Louis, Republic
39 Godrej Africa Holdings Limited Of Mauritius 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
40 Frika Weave Pty Ltd 30 Auckland Street, Paarden 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Eiland, Cape Town, 7405
41 Weave Ghana Ltd. Plot No 128, Spintex Road, Near 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Polytank Factory, Greater Accra,
Ghana

Annual Report 2016-17


*QNFKPI
5T Effective Applicable
0COGQHVJG%QORCP[ #FFTGUUQHVJG%QORCP[ %+0).0 5WDUKFKCT[
No. Control 5GEVKQP
/Associate
42 Kinky Group (Proprietary) Limited 11 Young Road, Pinetown 3610 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
43 Lorna Nigeria Limited Plot No 2A, Ayodele Diyan 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Street,Ikeja, Lagos, Nigeria
44 Godrej West Africa Holdings Limited C/O Cim Corporate Services Ltd, 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
45 Weave IP Holding Mauritius Private Limited 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cavell Street, Port Louis, Republic
Of Mauritius
46 Subinite Pty Limited 7 Potgieter Street, Alrode 1449, 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Johannesburg,Private Bag X 035,
Unit 21, Alberton, 1450, South

Godrej Consumer Products Limited


Africa
47 Weave Mozambique Limitada Av. Samora Machel, 6819-EN4, 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Maputo- Witibank KM 15Maputo
48 Weave Trading Mauritius Private Limited C/O Cim Corporate Services Ltd 51.00% NA-Foreign Company Subsidiary 2(87)(ii)
,Les Cascades Building, Edith
Cavell Street, Port Louis, Republic
Of Mauritius
49 Hair Trading (Offshore) S.A.L. Corniche Al-Mazraa- Mama Strt.- 51.00% NA-Foreign Company Subsidiary 2(87)(ii)
Chamat Bldg., Beirut- Lebanon
50 Godrej East Africa Holdings Limited C/O Cim Corporate Services Ltd, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
51 DGH Phase Two Mauritius Private Limited 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cavell Street, Port Louis, Republic
Of Mauritius
52 Style Industries Limited L.R No.1870/1/575, 1st Floor, 90.00% NA-Foreign Company Subsidiary 2(87)(ii)
Empress Plaza,Westlands, P.O Box
30682, 00100, Nairobi
53 Charm Industries Limited Plot 62, Alpha Centre, Mombasa 100.00% NA-Foreign Company Subsidiary
Road, Nairobi, Kenya, Po Box
18455-00100
54 Godrej Tanzania Holdings Limited C/O Cim Corporate Services Ltd, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
55 DGH Tanzania Ltd 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Cavell Street, Port Louis, Republic
Of Mauritius
56 Sigma Hair Industries Limited 11th Floor, PPF Tower, Ohio Street/ 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Garden Avenue, P O Box 1160, Dar
Es Salaam, Tanzania
57 Belaza Mozambique LDA No. 6819 Samora Machel, Rua 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
witbank EN 4, KM 15, Matola,
Mozambique
58 Hair Credentials Zambia Limited Plot 7461, Corner of Nchoncho and 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Washama Roads, Off Lamumba
Road, Lusaka 31471, Zambia
Directors’ Report

133
134
*QNFKPI
5T Effective Applicable
0COGQHVJG%QORCP[ #FFTGUUQHVJG%QORCP[ %+0).0 5WDUKFKCT[
No. Control 5GEVKQP
/Associate
59 Godrej SON Holdings Inc. 40, Technology Pkwy South, #300, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Norcross, Georgia 30092, Gwinnett
County
60 Style Industries Uganda Limited Plot 865, Industrial Area Namanve, 51.00% NA-Foreign Company Subsidiary 2(87)(ii)
Jinja Road- Bweyogerere/Kazinga,
Wakiso District, P.O. Box 29722
61 Old Pro International Inc (USA) 64 Ross Road, Savannah, Georgia, 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
31405
62 Strength of Nature South Africa Proprietary 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
Limited
63 Strength of Nature LLC (USA) 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
64 Canon Chemicals Ltd. Mombasa Road, Behind Mlolongo 75.00% NA-Foreign Company Subsidiary 2(87)(ii)
Weighbridge, P.O. Box 24336,
Nairobi, Kenya, 00100
65 Weave Senegal Ltd 35, Rue de Thiong, Dakar, Senegal 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
66 Godrej International Trading Company 125 M2 Warehouse A2-055, P.O. 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
(Sharjah, UAE) Box 514406, Sharjah – U.A.E

67 Godrej Consumer Products International FZCO Building No 3 E G08, Dubai Airport 100.00% NA-Foreign Company Subsidiary 2(87)(ii)
(GCPI) (Dubai, UAE) Free Zone, P O Box No 293725,
Dubai, UAE
68 DGH Uganda C/O Cim Corporate Services Ltd, 51.00% NA-Foreign Company Subsidiary 2(87)(ii)
Les Cascades Building, Edith
Cavell Street, Port Louis, Republic
Of Mauritius
69 Bhabhani Blunt Hairdressing Private Limited Ground Floor, Block No. 1, Kohinoor 30.00% U93020MH2004PTC148187 Associate 2(6)
Building, 29 Hughes Road, Mumbai
- 400007, Maharashtra, India

Annual Report 2016-17


Directors’ Report

ANNEXURE ‘E-2’
SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
I. Category-wise Share Holding
0QQH5JCTGUJGNFCVVJGDGIKPPKPIQHVJG[GCT
0QQH5JCTGUJGNFCVVJGGPFQHVJG[GCT
 % Change
(01.04.2016)
%CVGIQT[QH5JCTGJQNFGTU FWTKPIVJG
% of Total % of Total year
&GOCV Physical Total &GOCV Physical Total
5JCTGU 5JCTGU
# 2TQOQVGTU
(1) Indian
a) Individual/ HUF 16,054,647 - 16,054,647 4.71% 16,054,647 - 16,054,647 4.71% 0.00%
b) Central Govt - - - 0.00% - - - 0.00% 0.00%
c) State Govt (s) - - - 0.00% - - - 0.00% 0.00%
d) Bodies Corp. - 199,441,435 58.57% 199,441,435 - 199,441,435 58.56% 0.00%
199,441,435
e) Banks/FI - - - 0.00% - - - 0.00% 0.00%
f) Any Other - - - 0.00% - - - 0.00% 0.00%
5WDVQVCN
# 
 215,496,082 - 215,496,082 63.28% 215,496,082 - 215,496,082 63.27% 0.00%
(2) Foreign
a)    NRIs- Individuals - - - 0.00% - - - 0.00% 0.00%
b)    Other – Individuals - - - 0.00% - - - 0.00% 0.00%
c)     Bodies Corp - - - 0.00% - - - 0.00% 0.00%
d) Banks/FI - - - 0.00% - - - 0.00% 0.00%
e) Any Other - - - 0.00% - - - 0.00% 0.00%
5WDVQVCN
#
 - - - 0.00% - - - 0.00% 0.00%
6QVCN5JCTGJQNFKPIQH2TQOQVGT 215,496,082 - 215,496,082 63.28% 215,496,082 - 215,496,082 63.27% 0.00%
(A)= (A)(1) + (A)(2)
$2WDNKE5JCTGJQNFKPI
 +PUVKVWVKQPU
a)   Mutual Funds 1,750,560 14,904 1,765,464 0.52% 2,081,285 14,904 2,096,189 0.62% 0.10%
b)   Banks/FI 804,851 3,780 808,631 0.24% 636,101 3,780 639,881 0.19% -0.05%
c)   Central Govt - - - 0.00% - 0.00% 0.00%
d)   State Govt(s) - - - 0.00% - 0.00% 0.00%
e)  Venture Capital Funds - - - 0.00% - 0.00% 0.00%
f)    Insurance Co 3,778,002 - 3,778,002 1.11% 4,628,114 4,628,114 1.36% 0.25%
g)   FIIs 97,235,310 23,200 97,258,510 28.56% 96,794,367 23,200 96,817,567 28.43% -0.14%
h)   Foreign Venture Capital Fund - - - 0.00% - - - 0.00% 0.00%
i)    Others (Specify) - - - 0.00% - - - 0.00% 0.00%
5WDVQVCN
$ 
 103,568,723 41,884 103,610,607 30.43% 104,139,867 41,884 104,181,751 30.59% 0.16%
 0QP+PUVKVWVKQPCN
a) Bodies Corp.
i) Indian 3,722,632 - 3,722,632 1.09% 3,332,084 60,774 3,392,858 1.00% -0.10%
ii) Overseas - - - 0.00% - 0.00% 0.00%
b)  Individuals 0.00% 0.00%
i)     Individual shareholders 12,021,389 5,392,285 17,413,674 5.11% 12,108,696 5,134,608 17,243,304 5.06% -0.05%
holding nominal share capital
upto Rs.1 lakh
ii)   Individuals shareholders 290,828 - 290,828 0.09% 286,821 286,821 0.08% 0.00%
holding nominal share capital
in excess of Rs. 1 lakh
c) Others (specify) - - - 0.00% - 0.00% 0.00%
Clearing Member - - - 0.00% - 0.00% 0.00%
Foreign Nationals 0.00% 0.00% 0.00%
- Non Resident Indians (Repat) - - - 0.00% - 0.00% 0.00%
- Non Resident Indians (Non - - - 0.00% - 0.00% 0.00%
Repat)

Godrej Consumer Products Limited 135


0QQH5JCTGUJGNFCVVJGDGIKPPKPIQHVJG[GCT
0QQH5JCTGUJGNFCVVJGGPFQHVJG[GCT
 % Change
(01.04.2016)
%CVGIQT[QH5JCTGJQNFGTU FWTKPIVJG
% of Total % of Total year
&GOCV Physical Total &GOCV Physical Total
5JCTGU 5JCTGU
Trust - - - 0.00% - 0.00% 0.00%
5WDVQVCN
$
 16,034,849 5,392,285 21,427,134 6.29% 15,727,601 5,195,382 20,922,983 6.14% -0.15%
6QVCN2WDNKEUJCTGJQNFKPI
$ 
$ 119,603,572 5,434,169 125,037,741 36.72% 119,867,468 5,237,266 125,104,734 36.73% 0.00%
(1) + (B)(2)
C. Shares held by Custodian - - - 0.00% - - - 0.00% 0.00%
for GDRs & ADRs
)TCPF6QVCN
# $ % 335,099,654 5,434,169 340,533,823 100.00% 335,363,550 5,237,266 340,600,816 100.00% 0.00%

II. Shareholding of Promoters

5JCTGJQNFKPICVVJGDGIKPPKPIQHVJG 5JCTGJQNFKPICVVJGGPFQHVJG[GCT
year (01.04.2016) (31.03.2017) %
change
5T % of % of QH5JCTGU in share
5JCTGJQNFGTŏU0COG QH5JCTGU
No. total total Pledged/ holding
No. of Pledged/
5JCTGU 0QQH5JCTGU 5JCTGU GPEWODGTGF FWTKPI
5JCTGU GPEWODGTGF
of the of the to total the year
to total shares
EQORCP[ EQORCP[ shares
1 Godrej & Boyce Mfg Co Ltd 118,503,815 34.80% 0.00% 25,003,815 7.34% 0.00% -27.46%
2 Godrej Industries Ltd 80,937,620 23.77% 0.00% 80,937,620 23.76% 0.00% 0.00%
3 Godrej Seeds & Genetics - 0.00% 0.00% 93,500,000 27.45% 0.00% 27.45%
Ltd
4 Adi Burjorji Godrej 500 0.00% 0.00% 500 0.00% 0.00% 0.00%
5 Parmeshwar Adi Godrej 4 0.00% 0.00% 4 0.00% 0.00% 0.00%
6 Tanya Arvind Dubash 1,071,054 0.31% 0.00% 1,071,054 0.31% 0.00% 0.00%
7 Pirojsha Adi Godrej 1,071,075 0.31% 0.00% 1,071,075 0.31% 0.00% 0.00%
8 Nisaba Adi Godrej 1,071,061 0.31% 0.00% 1,071,061 0.31% 0.00% 0.00%

9 Jamshyd Naoroji Godrej And 1,606,808 0.47% 0.00% 1,606,808 0.47% 0.00% 0.00%
Others As Trustee Of Raika
Godrej Family Trust
10 Navroze Jamshyd Godrej 1,606,809 0.47% 0.00% 1,606,809 0.47% 0.00% 0.00%
11 Nadir Barjorji Godrej 917,454 0.27% 0.00% 917,454 0.27% 0.00% 0.00%
12 Rati Nadir Godrej - 0.00% 0.00% - 0.00% 0.00% 0.00%
13 Burjis Nadir Godrej 633,724 0.19% 0.00% 633,724 0.19% 0.00% 0.00%
14 Sohrab Nadir Godrej 633,728 0.19% 0.00% 633,728 0.19% 0.00% 0.00%
15 Hormazd Nadir Godrej 1,028,728 0.30% 0.00% 1,028,728 0.30% 0.00% 0.00%
16 Nyrika Holkar 967,088 0.28% 0.00% 967,088 0.28% 0.00% 0.00%
17 Freyan Crishna Bieri 967,090 0.28% 0.00% 967,090 0.28% 0.00% 0.00%
18 Rishad Kaikhushru Naoroji 24 0.00% 0.00% 24 0.00% 0.00% 0.00%
19 Rishad Kaikhushru Naoroji 4,479,500 1.32% 0.00% 4,479,500 1.32% 0.00% 0.00%
& Others [(Partner in M/s
RKN Enterprises) (Beneficial
Interest is of M/s RKN
Enterprises)]
6QVCN 215,496,082 63.28% 0.00% 215,496,082 63.27% 0.00% -0.01%

136 Annual Report 2016-17


Directors’ Report

III. Change in Promoters’ Shareholding

%WOWNCVKXG
5JCTGJQNFKPIFWTKPI
5JCTGJQNFKPI
Increase (+)/ the year / end of the
5T Decrease(-) period
0COG Reason
No. % of total in % of total
No of shares at shareholding
shares No of shares
the beginning of Date
of the shares of the
the year
%QORCP[ %QORCP[
1 Godrej & Boyce 118,503,815 34.80% 31-Mar-16 34.80%
Mfg Co Ltd 31-Mar-17 -93,500,000 Inter Se Transfer 25,003,815 7.34%
31-Mar-17 25,003,815 7.34%
2 Godrej Seeds & - 0.00% 31-Mar-16 0.00%
Genetics Ltd 31-Mar-17 93,500,000 Inter Se Transfer 93,500,000 27.46%
31-Mar-17 93,500,000 27.46%
3 Nadir Barjorji Godrej 1,551,178 0.46% 31-Mar-16 0.46%
09-Sep-16 -633724 Inter Se Transfer 917,454 0.27%
31-Mar-17 917,454 0.27%
4 Rati Nadir Godrej 633728 0.19% 31-Mar-16 0.19%
09-Sep-16 -633728 Inter Se Transfer - 0.00%
31-Mar-17 - 0.00%
5 Burjis Nadir Godrej 0 0.00% 31-Mar-16 0.00%
09-Sep-16 633724 Inter Se Transfer 633,724 0.19%
31-Mar-17 633,724 0.19%
6 Sohrab Nadir Godrej 0 0.00% 31-Mar-16 0.00%
09-Sep-16 633728 Inter Se Transfer 633,728 0.19%
31-Mar-17 633,728 0.19%
7 Rishad Kaikhushru 4479524 1.32% 31-Mar-16 1.32%
Naoroji 23-Dec-16 -4479500 Inter Se Transfer 24 0.00%
31-Mar-17 24 0.00%
8 Rishad Kaikhushru 0 0.00% 31-Mar-16 0.00%
Naoroji (As a Partner 23-Dec-16 4479500 Inter Se Transfer 4,479,500 1.32%
of RKN Enterprises)
31-Mar-17 4,479,500 1.32%

Godrej Consumer Products Limited 137


IV. Shareholding Pattern of top ten shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

%WOWNCVKXG
5JCTGJQNFKPIFWTKPI
5JCTGJQNFKPI
the year /end of the
Increase (+)/ period
5T No of Decrease(-)
0COG Reason
No shares % of total in % of total
at the shares shareholding No of shares
Date
beginning of the shares of the
of the %QORCP[ %QORCP[
year
1 First State Investments ICVC- 8,548,427 2.51% 31-Mar-16 2.51%
Stewart Investors Asia Pacific
Leaders Fund
18-Nov-16 53,153 Transfer 8,601,580 2.53%
25-Nov-16 365,588 Transfer 8,967,168 2.63%
20-Jan-17 (8,779,616) Transfer 187,552 0.06%
27-Jan-17 8,779,616 Transfer 8,967,168 2.63%
31-Mar-17 8,967,168 2.63%
2 Baytree Investments (Mauritius) 8,391,924 2.46% 31-Mar-16 2.46%
Pte Ltd
31-Mar-17 8,391,924 2.46%
3 Arisaig Partners (Asia) Pte Ltd A/C 6,772,678 1.99% 31-Mar-16 1.99%
Arisaig India Fund Limited
31-Mar-17 6,772,678 1.99%
4 Aberdeen Global Indian Equity Ltd 6,418,586 1.88% 31-Mar-16 1.88%
6-May-16 (116,058) Transfer 6,302,528 1.85%
11-May-16 (253,942) Transfer 6,048,586 1.78%
3-Jun-16 (200,000) Transfer 5,848,586 1.72%
10-Jun-16 (210,000) Transfer 5,638,586 1.66%
23-Sep-16 (140,000) Transfer 5,498,586 1.61%
28-Oct-16 (68,307) Transfer 5,430,279 1.59%
4-Nov-16 (151,693) Transfer 5,278,586 1.55%
6-Jan-17 (114,106) Transfer 5,164,480 1.52%
13-Jan-17 (215,894) Transfer 4,948,586 1.45%
31-Mar-17 (93,066) Transfer 4,855,520 1.43%
31-Mar-17 4,855,520 1.43%
5 Life Insurance Corporation of India 3,778,002 1.11% 31-Mar-16 1.11%
28-Oct-16 24,000 Transfer 3,802,002 1.12%
4-Nov-16 244,709 Transfer 4,046,711 1.19%
11-Nov-16 278,450 Transfer 4,325,161 1.27%
16-Nov-16 63,333 Transfer 4,388,494 1.29%
18-Nov-16 10,461 Transfer 4,398,955 1.29%
25-Nov-16 200,040 Transfer 4,598,995 1.35%
2-Dec-16 27,790 Transfer 4,626,785 1.36%
30-Dec-16 1,329 Transfer 4,628,114 1.36%
31-Mar-17 4,628,114 1.36%
6 New World Fund Inc 760,452 0.22% 31-Mar-16 0.22%
8-Apr-16 839,548 Transfer 1,600,000 0.47%
6-May-16 350,000 Transfer 1,950,000 0.57%
20-May-16 15,013 Transfer 1,965,013 0.58%
27-May-16 344,987 Transfer 2,310,000 0.68%
3-Jun-16 125,000 Transfer 2,435,000 0.72%
9-Sep-16 72,839 Transfer 2,507,839 0.74%
16-Sep-16 477,161 Transfer 2,985,000 0.88%
31-Mar-17 2,985,000 0.88%
7 Government of Singapore 3,415,934 1.00% 31-Mar-16 1.00%

138 Annual Report 2016-17


Directors’ Report

%WOWNCVKXG
5JCTGJQNFKPIFWTKPI
5JCTGJQNFKPI
the year /end of the
Increase (+)/ period
5T No of Decrease(-)
0COG Reason
No shares % of total in % of total
at the shares shareholding No of shares
Date
beginning of the shares of the
of the %QORCP[ %QORCP[
year
8-Apr-16 (11,030) Transfer 3,404,904 1.00%
15-Apr-16 4 Transfer 3,404,908 1.00%
22-Apr-16 (58,877) Transfer 3,346,031 0.98%
29-Apr-16 (28,233) Transfer 3,317,798 0.97%
6-May-16 (49,975) Transfer 3,267,823 0.96%
13-May-16 (4) Transfer 3,267,819 0.96%
3-Jun-16 14,685 Transfer 3,282,504 0.96%
10-Jun-16 (19,130) Transfer 3,263,374 0.96%
17-Jun-16 (71,510) Transfer 3,191,864 0.94%
8-Jul-16 (32,424) Transfer 3,159,440 0.93%
22-Jul-16 (40) Transfer 3,159,400 0.93%
29-Jul-16 (23,862) Transfer 3,135,538 0.92%
5-Aug-16 (38,274) Transfer 3,097,264 0.91%
12-Aug-16 (65,585) Transfer 3,031,679 0.89%
2-Sep-16 (5,772) Transfer 3,025,907 0.89%
9-Sep-16 1,760 Transfer 3,027,667 0.89%
16-Sep-16 (3,921) Transfer 3,023,746 0.89%
7-Oct-16 10,717 Transfer 3,034,463 0.89%
4-Nov-16 (4,205) Transfer 3,030,258 0.89%
11-Nov-16 (4,035) Transfer 3,026,223 0.89%
25-Nov-16 (3,922) Transfer 3,022,301 0.89%
2-Dec-16 40,504 Transfer 3,062,805 0.90%
9-Dec-16 (60,008) Transfer 3,002,797 0.88%
16-Dec-16 (38,851) Transfer 2,963,946 0.87%
30-Dec-16 12,643 Transfer 2,976,589 0.87%
6-Jan-17 11,863 Transfer 2,988,452 0.88%
20-Jan-17 (3,894) Transfer 2,984,558 0.88%
3-Feb-17 (71,016) Transfer 2,913,542 0.86%
7-Feb-17 (24,784) Transfer 2,888,758 0.85%
10-Feb-17 (3,885) Transfer 2,884,873 0.85%
3-Mar-17 (8,265) Transfer 2,876,608 0.84%
10-Mar-17 3,439 Transfer 2,880,047 0.85%
31-Mar-17 (36,305) Transfer 2,843,742 0.84%
31-Mar-17 2,843,742 0.84%
8 Vanguard Emerging Markets Stock 1,883,932 0.55% 31-Mar-16 0.55%
Index Fund, A series of Vanguard
International Equity Index Fund
8-Apr-16 6,552 Transfer 1,890,484 0.56%
22-Apr-16 5,400 Transfer 1,895,884 0.56%
10-Jun-16 5,750 Transfer 1,901,634 0.56%
24-Jun-16 21,648 Transfer 1,923,282 0.56%
22-Jul-16 4,428 Transfer 1,927,710 0.57%
29-Jul-16 13,194 Transfer 1,940,904 0.57%
5-Aug-16 10,449 Transfer 1,951,353 0.57%
12-Aug-16 11,115 Transfer 1,962,468 0.58%
19-Aug-16 15,808 Transfer 1,978,276 0.58%
9-Sep-16 7,110 Transfer 1,985,386 0.58%

Godrej Consumer Products Limited 139


%WOWNCVKXG
5JCTGJQNFKPIFWTKPI
5JCTGJQNFKPI
the year /end of the
Increase (+)/ period
5T No of Decrease(-)
0COG Reason
No shares % of total in % of total
at the shares shareholding No of shares
Date
beginning of the shares of the
of the %QORCP[ %QORCP[
year
7-Oct-16 8,896 Transfer 1,994,282 0.59%
14-Oct-16 6,116 Transfer 2,000,398 0.59%
21-Oct-16 20,850 Transfer 2,021,248 0.59%
28-Oct-16 8,340 Transfer 2,029,588 0.60%
11-Nov-16 18,070 Transfer 2,047,658 0.60%
25-Nov-16 21,962 Transfer 2,069,620 0.61%
2-Dec-16 12,510 Transfer 2,082,130 0.61%
6-Jan-17 5,616 Transfer 2,087,746 0.61%
13-Jan-17 11,934 Transfer 2,099,680 0.62%
20-Jan-17 5,616 Transfer 2,105,296 0.62%
3-Feb-17 16,848 Transfer 2,122,144 0.62%
17-Feb-17 4,680 Transfer 2,126,824 0.62%
24-Mar-17 7,333 Transfer 2,134,157 0.63%
31-Mar-17 10,076 Transfer 2,144,233 0.63%
31-Mar-17 2,144,233 0.63%
9 Arisaig Partners (Asia) Pte Ltd A/c 2,127,844 0.62% 31-Mar-16 0.62%
Arisaig Global Emerging Markets
Consumer Fund (Singapore) Pte
Ltd
3-Feb-17 (158,500) Transfer 1,969,344 0.58%
31-Mar-17 1,969,344 0.58%
10 First State Asian Equities Plus Fund 2,759,517 0.81% 31-Mar-16 0.81%
15-Apr-16 (55,008) Transfer 2,704,509 0.79%
22-Apr-16 (283,561) Transfer 2,420,948 0.71%
15-Jul-16 (60,868) Transfer 2,360,080 0.69%
22-Jul-16 (50,811) Transfer 2,309,269 0.68%
9-Dec-16 (80,700) Transfer 2,228,569 0.65%
23-Dec-16 (92,108) Transfer 2,136,461 0.63%
20-Jan-17 (81,060) Transfer 2,055,401 0.60%
27-Jan-17 (80,788) Transfer 1,974,613 0.58%
3-Mar-17 (55,513) Transfer 1,919,100 0.56%
10-Mar-17 (191,789) Transfer 1,727,311 0.51%
17-Mar-17 (48,366) Transfer 1,678,945 0.49%
31-Mar-17 1,678,945 0.49%

140 Annual Report 2016-17


Directors’ Report

V. Shareholding of Directors and Key Managerial Personnel

%WOWNCVKXG
5JCTGJQNFKPIFWTKPI
5JCTGJQNFKPI
the year/end of the
Increase (+)/ period
5T Decrease(-)
0COGCPF&GUKIPCVKQP No of Reason
No. % of total in % of total
shares shareholding
shares No of shares
at the Date
of the shares of the
beginning
%QORCP[ %QORCP[
of the year

1 Adi Godrej, Chairman 500 <0.01% 31-Mar-16 <0.01%


31-Mar-17 500 <0.01%
2 Jamshyd Godrej and others as 1,606,808 0.47% 31-Mar-16 0.47%
Trustee of Raika Godrej Family
Trust
31-Mar-17 1,606,808 0.47%
3 Nadir Godrej, Director 1,551,178 0.46% 31-Mar-16 0.46%
09-Sep-16 -633,724 917,454 0.27%
31-Mar-17 917,454 0.27%
4 Tanya Dubash, Director 1,071,054 0.31% 31-Mar-16 0.31%
31-Mar-17 1,071,054 0.31%
5 Nisaba Godrej, Executive Director 1,071,061 0.31% 31-Mar-16 0.31%
31-Mar-17 1,071,061 0.31%
6 Vivek Gambhir, Managing Director 19,558 <0.01% 31-Mar-16 <0.01%
& CEO
5-Aug-16 19,565 Exercise 39,123 <0.01%
of ESOP
31-Mar-17 39,123 <0.01%
7 Narendra Ambwani, Director 1,000 <0.01% 31-Mar-16 <0.01%
31-Mar-17 1,000 <0.01%
8 Bharat Doshi, Director 13,714 <0.01% 31-Mar-16 <0.01%
31-Mar-17 13,714 <0.01%
9 V Srinivasan, Chief Financial 1,234 <0.01% 31-Mar-16 <0.01%
Officer & Company Secretary
5-Aug-16 961 Exercise 2195 <0.01%
of ESOP
31-Mar-17 2195 <0.01%

Godrej Consumer Products Limited 141


ANNEXURE ‘F’ 5. At the New Conso unit, CENTRAL WEST
the usage of fast card flow CLUSTER
INFORMATION PURSUANT TO
SECTION 134(3)(m) OF THE wrap heaters (2 to 1) was 14. Installation of a micro steam
COMPANIES ACT, 2013 READ WITH optimised. We achieved an turbine, which generates
THE COMPANIES (ACCOUNTS) annual saving of more than power to the tune of
RULES, 2014 WITH RESPECT TO 20,000 kWh 560,000 kWh per annum by
CONSERVATION OF ENERGY, reducing steam pressure
6. Installation of a 5-KW solar
TECHNOLOGY ABSORPTION, AND
system for lighting at your from 15 to 3 bar
FOREIGN EXCHANGE EARNINGS
AND OUTGO Company’s Sikkim unit. We 15. Usage of solar power
achieved an annual saving through open excess
A. Conservation of Energy
of 26,000 kWh resulting in usage of
I. Steps taken or impact of renewable electrical energy
Waste reduction (material
initiatives for conservation during the day hours.
conservation)
of energy and Steps taken by We consumed 60 lakh
the Company to use alternate 7. Recycling of laminate scrap electrical units during the
sources of energy: instead of incineration year 2016-17
NORTH-EAST CLUSTER 8. Reduction in crème
16. Installation of a water-
laminate wastage by 42 per
1. Your Company’s north-east based vacuum system in
cent despite an increase in the soap dryer to reduce
cluster has 8 units, of which
production volume steam consumption by 360
2 are 100 per cent LED lit,
and the rest of the units are Water conservation MT per annum
more than 50 per cent LED 9. Reuse of regenerated 17. Installation of a water-
lit, which leads to savings water from DM Plant and based vacuum system in
of 47,313 units FADP2 to reduce steam
other STP treated water for
2. Installation of auto gardening with an annual consumption by 800 MT
detection/cut-off saving of approximately per annum
mechanism to cut off 156 KL 18. Optimisation of the running
energy supply when it is not
NORTH CLUSTER of the briquette-fired
needed. We achieved an
boiler to increase the use
annual saving of more than   10. Installation of LED lights
of renewable energy by
15,000 kWh instead of tube lights
using 5,500 MT of biomass
3. At the Meghalaya Coils unit, 11. Replacement of equipment briquette
the usage of hot air from motors with low-capacity
SOUTH CLUSTER
the compressor exhaust as energy-efficient motors
an input to the blower was 12. Improvement in the power 19. Reduction of gas
started during the year consumption by increasing
factor
hot water kettle capacity.
4. The units use transfer 13. Automation of water chiller An annual saving of 38,500
pumps. To reduce the and stamping machines to SCM (standard cubic
usage of these transfer avoid idle running meter of natural gas) was
pumps, the diameter of
We achieved savings of achieved
the transfer pipe was
increased. We achieved an 119,000 kWh through all the 20. Installation of energy-
annual saving of more than aforementioned measures. efficient lighting. An annual
25,000 kWh

142 Annual Report 2016-17


Directors’ Report

saving of 440,640 kWh and 1. Good knight personal repellent to successful launches of several
462,019 kWh in the Coil 9 gel, patches, and Fabric Roll-On new products in the market in the
and MM Nagar,Tamil Nadu 2. HIT Gel Stick current fiscal year. Your company
units, respectively, was 3. BBLUNT has entered into the personal
achieved 4. Salon Secret repellent space with highly
5. Godrej No. 1 germ protection innovative products containing
21. Installation of VFD’s in
soap natural active ingredients. R&D
higher capacity motors for
6. New variants of Godrej aer has also played a pivotal role in
energy saving. An annual
pocket the improving cost optimisation
saving of 99,236 kWh was
7. Good knight Power Shots across product categories by
achieved
8. NYU crème hair colour in contributing through both, product
II. Capital investment on Indonesia and process related innovations
energy conservation 9. Stella pocket in Indonesia and improvements.
equipment: 10. Aliyana range of hair care
We believe that the three key
products in Africa
The Company made a pillars of consumer centricity,
capital investment of The current year, like previous new product development, and
` 2.052 crore for energy years, also saw a sharp focus training-led skill upgradation will
conservation projects on consumer-centric, relevant, continue to propel your Company
during the year. design-led innovation. The ahead of competition in its
Company focuses intently on strategy of innovation-led value
Awards:
innovation in new technologies, creation.
   zWon certificate of which provides the consumer
appreciation from the Future plan of action:
value for money.
National Safety Council R&D shall continue to play a
for Thana and Katha I. Specific R&D product
key role in the advancement
plants categories initiated by the
and successful execution of
company:
   zMalanpur unit won CII innovations in the market, for
1. Hair Care both domestic and international
Greenco rating in the
Gold Category for its 2. Skin Care business. Our R&D team shall
efforts for sustainable 3. Household Insecticides constantly endeavour to deliver
improvement superior innovative products,
4. Customer Centricity
thereby delighting both domestic
   zWon the “Certificate 5. Packaging Development and international customers
of Winner with 3 star
6. Fabric Care by implementing the following
rating” in CII EHS
7. Hygiene Products measures:
Excellence Award for
the MM Nagar, Tamil 8. Air Care 1. Ensuring successful
Nadu unit commercial launches within
9. Dry Hair
the Hair Care, Household
B. Technology Absorption II. Benefits derived from the Insecticides, and Personal
The Research and Development aforementioned R&D efforts: Care categories in the coming
(R&D) function of your Company year
R&D has played a pivotal role in
continued to play a key role in developing two new technologies 2. Engaging in providing support
ensuring successful launches of in the air care and personal care on global innovation strategies
the following products during the areas. Strong R&D-led initiatives for various product categories
year: with innovation projects have led within our international

Godrej Consumer Products Limited 143


businesses and extending as Skin Care, Household 5. Partnering with external stake
support on relevant product Insecticides, Hair Care, Air holders and leading institutions
development for international Care, and Fabric Care
III. Imported Technology:
markets 4. Maintaining a strong focus
Your Company has not imported
3. Focusing on newer consumer on R&D training needs and
any technology since its
relevant product experiences people development
incorporation
within all categories such

IV. Expenditure on R&D

` Crore
Fiscal year 2016-17 Fiscal year 2015-16
(a) Capital 1.74 1.83
(b) Recurring 14.46 15.51
(c) Total 16.20 17.34
(d) Total R&D expenditure as a percentage of total sales turnover 0.32% 0.36%

C. Foreign Exchange Earnings and Outgo:

` Crore
Fiscal year 2016-17 Fiscal year 2015-16
I. Foreign exchange used 315.33 253.49
II. Foreign exchange earned 197.75 195.66

ANNEXURE ‘G’

CSR Report benefit communities at large and social enterprises to design


deliver social and environmental and run several employability
1. A brief outline of the Company’s
impact. The Company has framed training programmes for youth
CSR policy, including an
a CSR policy in compliance with from low-income sections of
overview of projects or
the provisions of the Companies society. We aim to improve
programmes proposed to be
Act, 2013. The policy as well the earning potential of our
undertaken, with a URL to the
as projects and programmes trainees, by building their skills
CSR policy and initiatives
under the CSR policy are on the and empowering them. Apart
GCPL is committed to the Godrej Company website and may be from core domain skills, our
Group’s ‘Good & Green’ vision accessed through the following programmes also focus on life
of creating a more inclusive link[5] skills training, entrepreneurship
and greener India. The Good & development, and post-
An overview of the projects or
Green CSR policy focuses on placement support.
programmes undertaken during
addressing the critical social,
fiscal year 2016-17 is given below. As of March 2017, we have
environmental, and economic
We have aligned our programmes trained over 186,000 youth in
needs of the marginalised and
to national missions and priorities skills that will enhance their
less privileged sections of society.
and they are thus categorised. earning potential.
Through our Good & Green CSR
policy, we align our CSR strategy 1. National Skills Mission Our projects include:
with the Godrej Group’s Good &
A. Employability and • Salon-i, our beauty and hair
Green vision and goals. We adopt
Livelihoods care training
an approach that integrates the
solutions to these problems into At Godrej, we collaborate with • Vijay, our channel sales
the strategy of the Company, to non-profit organisations and training for rural youth
[5]
http://www.godrejcp.com/Resources/pdf/CSR-Policy.pdf

144 Annual Report 2016-17


Directors’ Report

• Prerna, our retail through life skills and resources.


management training entrepreneurship
iii. Prerna, our retail
modules. Ninety-five
i. Salon-i trains young management training
women have joined
girls and women in programme is aimed
the Beauty-preneur
beauty and hair care. at improving the
programme and are
Over 30,000 women entrepreneurial ability
aiming to reach out
have graduated from of retailers. The
to other women as
this programme in programme covers
well as to grow their
fiscal year 2016-17. topics including
businesses.
The programme is business drivers and
currently operational ii. As fast-moving key measures, stock
in 300 centres across consumer goods and management, principles
India. The curriculum is other similar industries of display, interacting
integrated with life skills expand in India, a ready with customers, and
and entrepreneurial pipeline of skilled talent trends in retail and
modules to equip the for sales, particularly in self-service stores,
candidates in starting rural areas, will be an to improve the sales
their own enterprise, if essential enabler for skills of in-shop retail
they are so interested. growth. The industry associates. Topics
The curriculum has currently faces high covered include basic
been digitised and is attrition of entry-level IT, communication
available as audio-visual sales representatives. and workplace ethics,
content. This can be partly stock and shelf
attributed to the lack of management, knowing
Through our
requisite skills, leading products, growth drivers
partnerships,
to an inability to meet for business, basic
approximately 60 per
targets and manage interaction skills, selling
cent of our alumni
pressure at work. Vijay, skills, customer service
have found jobs in
our training programme skills, and soft skills.
beauty parlours, many
in channel sales, trains In fiscal year 2016-17,
of which are nationally
unemployed youth and 1500 candidates were
recognised chains;
builds a talent pipeline trained under Prerna.
the rest work mainly as
for the industry.
freelancers or micro- iv. We have developed
entrepreneurs. The programme trained a life skills
12,500 youth across curriculum for all
Further, in fiscal year
5 locations in channel of our employability
2016-17, we reached
sales in fiscal year programmes across
out to women in the
2016-17. The youth our businesses. The
beauty and wellness
undergo 40 hours of life skills curriculum
industry across India
training—one-half of supplements the current
to set up the ‘Beauty-
which is spent in the employability courses.
preneur’ platform. This
classroom and the other The modules equip our
program promotes
half as experiential trainees with financial
entrepreneurship and
learning. The literacy, work readiness,
enables women to start
programme has been and critical skills, which
training other girls as
specially designed for will enable them to
well as empowers these
training distributor sales build stronger and more
women entrepreneurs

Godrej Consumer Products Limited 145


productive careers and strategy, we conducted 2. Swachh Bharat Mission
lives. Interactive games third-party community needs A. Elimination of Vector Borne
and activities have been assessments at our priority Endemic Diseases
developed for different plant locations.
target audiences under Elimination of Vector Borne
Based on valuable Endemic Diseases (EMBED)
this project.
is an intensive community
stakeholder input, we are
v. We are also conducting awareness and behaviour
now implementing a range
a semi-longitudinal change programme to
of high-impact community combat malaria in regions that
impact assessment of
development programmes report high annual parasitic
all our employability
primarily to improve the index. Under the EMBED
programmes. This
quality of education in programme, we collaborate
impact assessment
with non-profit organisations
study aims to government schools around
and governments and aim
understand the socio- our manufacturing sites. Our to reduce mortality due to
economic impact of our interventions help to improve malaria.
courses on the lives of the infrastructure in the schools
The approach towards the
the people trained over as well as the overall teaching project is as follows:
a 3-year period. The learning environment.
mid-term assessment • Implement specific
C. Rural Entrepreneurship behaviour change
of the programme is
communication
complete.
As a corollary to the interventions at the
B. Community Development employability and livelihoods community and household
level to spread awareness
programme, we have set up
Sustainability is an integral and encourage healthcare
part of our business and a project to identify and train
seeking behaviour for
value chain, and it helps unemployed women and youth prevention and control
us provide high-quality and in entrepreneurship skills to of vector-borne endemic
affordable goods to our 1.1 ensure a stable livelihood for diseases
billion people globally, who them. The programme involves • Strengthen links with public
use our products on any intensive mobilisation and a and private health services
given day. Our stakeholders in the prioritised blocks to
year-long hand-holding period
are also the communities that improve preventive and
to ensure that they succeed at
border our plant locations. curative services
their entrepreneurial ventures.
To align our CSR activities • Evaluate the data to
40 youth have currently been support scaling-up the
with both community needs
identified under this project. project
and our Good & Green

146 Annual Report 2016-17


Directors’ Report

B. Waste Management waste. The wet waste will 2. Plastic waste


be turned into compost, management in Guwahati,
We have initiated various
the plastic waste will be Assam
community waste management
recycled into granules,
projects across India. Some of The project aims to collect
and the non-recyclable
these projects are as follows: the non-recyclable multi-
plastic waste will be
layered plastic waste and
1. Urban waste management converted into poly fuel via convert it into poly fuel
in Hyderabad, Telangana thermal depolymerisation. via pyrolysis. We aim to
We are working with The project will also process more than 2 tonnes
the Greater Hyderabad manufacture briquettes, of plastic waste per day
Municipal Corporation from other waste for use as from industrial units and
(GHMC) in a multi- a fuel source. The project housing societies in the
stakeholder project which aims to divert more than 25 Guwahati municipality and
includes the Resident tonnes of municipal solid its surrounding areas.
Welfare Associations of waste per day from landfills
3. Rural Electrification
Hyderabad to establish with the aim to become a
10 swachh centres for zero waste to landfill project We aim to create renewable
segregating wet and dry over time. energy ecosystems in

Godrej Consumer Products Limited 147


rural India to address the (covering 144 villages) Akanksha Foundation aims
shortage of energy supply. through transformation to provide access to quality
The project provides of Anganwadis into education to children in
decentralised, off-grid child-friendly spaces Mumbai
renewable energy systems and capacity building of
E. Skill training connect to
through community-level Anganwadi workers.
adolescents for enhanced
installations. These mini-
B. Green chemistry: With livelihood opportunities:
and micro-grids are being
the funding from GCPL, The project with Magic Bus is
installed in 67 energy-dark
the Institute of Chemical aimed to provide skill training
villages in Andhra Pradesh,
Technology (ICT), Mumbai, and entrepreneurship hand
Uttarakhand, and Madhya
has proposed to set up a holding to the alumni, who
Pradesh. In addition, we are
skill development centre. The are on the verge of finding a
also training the local youth
proposed centre has three career or livelihood for their
and building awareness on
objectives: future.
the potential of renewable
energy systems for meeting • To develop training F. Cancer aid-critical ailment
rural energy needs. programmes for the support: The project supports
characterisation the Child Help Foundation
4. Watershed Management
of biologics and to help critically ill children
Our integrated watershed biopharmaceutical suffering from Cancer access
development project will quality medical treatment.
• To establish a state-of-the‐
help restore the ecological
art centre for biophysical 6. Composition of the CSR
balance in the drought-
and biochemical analysis Committee
prone district of Siddipet
for skill development for
in Telangana. Our efforts The composition of the CSR
training students and
are designed to recharge Committee during the year is as
providing a resource to
groundwater and make follows:
the Indian biotechnology
more water available for
industry 1. Mr. Nadir Godrej, Chairman
irrigation over a total area of
more than 3,300 hectares. • To develop back‐to‐school 2. Ms. Tanya Dubash, Director
We are also working to programmes for industrial
3. Ms. Nisaba Godrej, Executive
support farmers in adopting participants to hone their
Director
sustainable farming skills
practices to mitigate the 4. Mr. Vivek Gambhir, Managing
C. Olympic Gold Quest: The
impacts of climate change. Director & CEO
project aims to support
5. Donations 49 senior Indian athletes 5. Mr. Narendra Ambwani,
A. Enabling right to food aspiring to participate in Independent Director
and fighting malnutrition Commonwealth Games, Asian
7. Average Net Profit of the
in children with the Fight Games, and Olympics by
Company in the last 3 fiscal
Hunger Foundation: funding their training and sport
years: ` 819.13 crore
The aim was to reach equipment purchase as well as
to children in Gadhwani providing medical support. 8. Prescribed CSR expenditure
Block of Dhar district (2 per cent of this amount as in
D. Access to education for
in Madhya Pradesh item 3 above): ` 16.38 crore
children: The donation to the

Details of CSR expenditure for the financial year:


C  6QVCNCOQWPVVQDGURGPVHQTVJGſPCPEKCN[GCT The Company has spent ` 16.52 crore against the mandated
b) Amount unspent, if any amount of ` 16.38 crore. The manner in which the amount is spent
E  /CPPGTKPYJKEJVJGCOQWPVURGPVFWTKPIVJGſPCPEKCN[GCT is detailed in Table 1, which is attached.

148 Annual Report 2016-17


Table 1- Details of CSR expenditure for fiscal year 2016-17
` (Crore)
5T %542TQLGEV#EVKXKV[ 5GEVQTKPYJKEJVJG 2TQLGEVU2TQITCOOGU #OQWPV #OQWPVURGPVQPVJG %WOWNCVKXG #OQWPVURGPV
&KTGEV
No. KFGPVKſGF 2TQLGEVKUEQXGTGF  .QECNCTGCQTQVJGT QWVNC[ RTQLGEVRTQITCOOGU GZRGPFKVWTGWR KORNGOGPVKPICIGPE[
2) specify the district
DWFIGV  Direct Over- to the reporting
CPFUVCVGYJGTGRTQLGEVU RTQLGEV GZRGPFKVWTG heads period
QTRTQITCOOGUYGTG RTQITCOOG QPRTQLGEVUQT
WPFGTVCMGP YKUG RTQITCOOGU
1 Project Salon-i Schedule VII Gujarat, Maharashtra, Uttar 5.55 5.30 0.27 5.57 Multiple Agencies:
Skill training for (ii) Livelihood Pradesh, Bihar, Chattisgarh, Dhriiti

Godrej Consumer Products Limited


employability leading to Enhancement Projects Assam, Nagaland, Manipur, Ambuja Cement
women empowerment Mizoram, and Delhi Foundation, DDJF, Don
Bosco Tech Society, Father
Agnel Ashram, Labournet,
Saath, Pratham, NSHM,
Save the Children India,
Tara Livelihood Academy,
and Unnati
2 Project Vijay Schedule VII Madhya Pradesh, Chattisgarh, 0.59 0.56 0.03 0.59 Vision India
Skill training for (ii) Livelihood Karnataka, Odisha, Andhra
employability for FOS Enhancement Projects Pradesh, and Uttar Pradesh
sales
3 Project Prerna Schedule VII Delhi, Maharashtra, Uttar 0.23 0.23 0.01 0.24 Vision India and Labournet
Up-skilling of rural (ii) Livelihood Pradesh
retailers and their Enhancement Projects
assistants
4 Behaviour Change Schedule VII (i) Dindori and Mandla districts of 2.60 2.48 0.13 2.61 Family Health India
Communication on Promoting preventive Madhya Pradesh
Malaria and Vector-Borne healthcare
Diseases (EMBED)
Directors’ Report

149
150
` (Crore)
5T %542TQLGEV#EVKXKV[ 5GEVQTKPYJKEJVJG 2TQLGEVU2TQITCOOGU #OQWPV #OQWPVURGPVQPVJG %WOWNCVKXG #OQWPVURGPV
&KTGEV
No. KFGPVKſGF 2TQLGEVKUEQXGTGF  .QECNCTGCQTQVJGT QWVNC[ RTQLGEVRTQITCOOGU GZRGPFKVWTGWR KORNGOGPVKPICIGPE[
2) specify the district
DWFIGV  Direct Over- to the reporting
CPFUVCVGYJGTGRTQLGEVU RTQLGEV GZRGPFKVWTG heads period
QTRTQITCOOGUYGTG RTQITCOOG QPRTQLGEVUQT
WPFGTVCMGP YKUG RTQITCOOGU
5 Community Needs Schedule VII (x) Rural Miraj, Sangli, Taloja, and 0.38 0.37 0.02 0.39 Ethica Strategy India
Assessment Development Projects Ambernath in Maharashtra; Private Limited
Malanpur in Madhya Pradesh;
Valia in Gujarat;
Hanuman Junction and
Pothepally in Andhra Pradesh;
Khanna in Punjab;
Katha and Thana in Baddi,
Himachal Pradesh;
North Guwahati in Assam;
Meghalaya
6 Semi-longitudinal Schedule VII PAN India 0.27 0.26 0.01 0.27 Collective Good
Impact Assessment of (ii) Livelihood Foundation
Godrej Employability Enhancement Project
Programmes
7 Life skills Curriculum Schedule VII PAN India 0.24 0.23 0.01 0.24 Vikalp Kriya
Development for (ii) Livelihood
Employability Enhancement Project
8 Rural Enterprise Schedule VII Uttar Pradesh 0.12 0.12 0.01 0.13 Dhriiti
(ii) Livelihood
Enhancement Project
9 Waste Management Schedule VII Hyderabad, Telangana and 3.67 3.50 0.18 3.68 Dharthi Sustainables
(iv) Environment Guwahati, Assam Pvt. Ltd., Maa Kamakhya
Sustainability Disposable Works
10 4WTCN'NGEVTKſECVKQP Schedule VII Andhra Pradesh, Madhya 1.77 1.69 0.09 1.78 Pragya, Aga Khan Rural
(iv) Environment Pradesh, and Uttarakhand Support Programme, and
Sustainability Agriculture and Social
Development Society
11 Watershed Management Schedule VII Siddipet district, Telangana 0.36 0.35 0.02 0.37 Aga Khan Rural Support
(iv) Environment Programme
Sustainability

Annual Report 2016-17


` (Crore)
5T %542TQLGEV#EVKXKV[ 5GEVQTKPYJKEJVJG 2TQLGEVU2TQITCOOGU #OQWPV #OQWPVURGPVQPVJG %WOWNCVKXG #OQWPVURGPV
&KTGEV
No. KFGPVKſGF 2TQLGEVKUEQXGTGF  .QECNCTGCQTQVJGT QWVNC[ RTQLGEVRTQITCOOGU GZRGPFKVWTGWR KORNGOGPVKPICIGPE[
2) specify the district
DWFIGV  Direct Over- to the reporting
CPFUVCVGYJGTGRTQLGEVU RTQLGEV GZRGPFKVWTG heads period
QTRTQITCOOGUYGTG RTQITCOOG QPRTQLGEVUQT
WPFGTVCMGP YKUG RTQITCOOGU
12 Fighting malnutrition in Schedule VII Dhar district, Madhya Pradesh 0.05 0.05 0.00 0.05 Donation to Fight Hunger
children (i) Eradicating Foundation
hunger, poverty and

Godrej Consumer Products Limited


malnutrition
13 Green Chemistry Schedule VII (ii) Institute of Chemical 0.20 0.20 0.01 0.21 Donation to Institute of
Promoting Education Technology, Chemical Technology
Mumbai
14 Promotion of Sports Schedule VII (vii) PAN India 0.25 0.25 0.01 0.26 Donation to Foundation for
Promoting nationally Promotion of Sports and
recognised sports Games
15 Access to education Schedule VII (ii) Mumbai 0.10 0.10 0.00 0.10 Donation to Akanksha
Promoting Education Foundation
16 Access to livelihood Schedule VII Maharashtra 0.02 0.02 0.00 0.02 Donation to Magic Bus
(ii) Livelihood Foundation
Enhancement Projects
17 Critical ailment support Schedule VII (i) Mumbai 0.00 0.01 0.00 0.01 Donation to Child Help
to child suffering from Promoting preventive Foundation
Cancer healthcare
Total 16.40 15.72 0.80 16.52

The implementation and monitoring of this CSR policy is in compliance with the CSR objectives and policy of the Company

Nadir Godrej, Chairman of the CSR Committee Vivek Gambhir, Managing Director & CEO (member of the CSR Committee)
Directors’ Report

151
ANNEXURE ‘H’

AS PER THE DISCLOSURE REQUIREMENT SPECIFIED UNDER SEBI (SHARE BASED EMPLOYEE BENEFITS)
REGULATIONS, 2014 AND SECTION 62(1)(b) OF THE COMPANIES ACT, 2013 READ WITH RULE 12(9) OF
THE COMPANIES (SHARE CAPITAL & DEBENTURES) RULES, 2014, THE FOLLOWING INFORMATION IS
DISCLOSED WITH RESPECT TO EMPLOYEE STOCK BENEFIT PLANS:

5T )QFTGL%QPUWOGT2TQFWEVU.KOKVGF
2CTVKEWNCTU
No. 'ORNQ[GG5VQEM)TCPV5EJGOG
1 Date of shareholders’ approval for the options granted under March 18, 2011
the scheme
2 Total number of options approved for grants under the 2,500,000
scheme
3 Vesting requirements As specified by the Nomination & Remuneration Committee
subject to minimum 1 year from the date of grant
4 Exercise price or pricing formula `1 per share
5 Maximum term of options granted As may be decided by the Nomination & Remuneration
Committee as per the prevalent regulatory provisions
6 Source of shares Direct Allotment
7 Variation of terms of options None
8 Options granted during the year and till March 31, 2017 During the year: 58,376
Up to March 31, 2017: 523,595
9 Options vested during the year and upto March 31, 2017 During the year: 66,993
Up to March 31, 2017: 303,444
10 Options exercised during the year and upto March 31, 2017 During the year: 66,993
Up to March 31, 2017: 303,355
11 The total number of shares arising as a result of exercise of During the year: 66,993
option Up to March 31, 2017: 303,555
12 Options lapsed During the year: 3,584
Up to March 31, 2017: 91,345
13 Money realised by exercise of options during the year and During the year: ` 66,993
upto March 31, 2017 Up to March 31, 2017: ` 303,555
14 Total number of options outstanding and exercisable at the 128,895
end of the year
15 Method used to account for the options- The company has calculated the employee compensation
cost using the fair value of stock options, in accordance with
IND AS.
16 Weighted-average exercise prices and weighted-average Exercise price `1.00 per share
fair values of options (shall be disclosed separately for Fair Value ` 1216.49
options whose exercise price either equals or exceeds or is
less than the market price of the stock)
17 Employee-wise details of options granted to
i) Senior Managerial Personnel As per Note 1
ii) Any other employee who receives a grant in any one As per Note 1
year of option amounting to 5 per cent or more of option
granted during that year
iii) Identified employees who were granted option, during Nil
any one year, equal to or exceeding 1 per cent of the issued
capital (excluding outstanding warrants and conversions) of
the Company at the time of grant
18 Diluted Earnings Per Share (EPS) pursuant to issue of shares ` 24.89 per share (standalone)
on exercise of option calculated in accordance with IND AS ` 38.28 per share (consolidated)
33 ‘Earnings Per Share’

152 Annual Report 2016-17


Directors’ Report

5T )QFTGL%QPUWOGT2TQFWEVU.KOKVGF
2CTVKEWNCTU
No. 'ORNQ[GG5VQEM)TCPV5EJGOG
19 A description of the method and significant assumptions The fair value of the options granted has been calculated
used during the year to estimate the fair values of options, using Black – Scholes Options pricing formula and the
including the following weighted-average information: significant assumptions made in this regard are as follows:
i) Risk-free interest rate, 7.04%
ii) Expected life, 2.00
iii) Expected volatility, 32.21%
iv) Expected dividends, and 0.39%
v) The price of the underlying share in market at the time of 1481.60
option grant

Note 1- Employee-wise details of options granted to Senior Managerial Personnel and details of options granted
more than 5 per cent in 1 year
)TCPVGFKPſUECN )TCPVGFKPſUECN )TCPVGFKPſUECN
0COG&GUKIPCVKQPQH5GPKQT 6QVCNQWVUVCPFKPI
year 2014-15 and year 2015-16 and year 2016-17 and
/CPCIGTKCN2GTUQPPGNVQYJQOUVQEM options as at March
QWVUVCPFKPICUCV QWVUVCPFKPICUCV QWVUVCPFKPICUCV
options have been granted 31, 2017
March 31, 2017 March 31, 2017 March 31, 2017
Vivek Gambhir, Managing Director & CEO 7,706* 11,865* 13,496* 33,067

V Srinivasan, Chief Financial Officer & N.A 1,922 2,362 4,264


Company Secretary
Naveen Gupta, Business Head - Indonesia 1,387 2,966 3,374* 7,727
and Middle East
Sunil Kataria, Business Head - India & 1,387 2,966 3,374* 7,727
SAARC
Omar Momin, Head - M&A and Business 924 2,966 3,374* 7,264
Development
Rakesh Sinha, Head - Global Supply Chain, 1,156 1,899 2,159 5,214
Manufacturing & IT
Rahul Gama, Head - Human Resources 770 1,483 1,687 3,940

Sunder Mahadevan, Head - Global R&D 770 1,483 1,687 3,940

*Option granted was more than 5 per cent of the options granted in 1 year.
The aforementioned disclosures can also be accessed on the Company web link: http://godrejcp.com/annual-reports.aspx

Godrej Consumer Products Limited 153


ANNEXURE ‘I’

Form No MR – 3 We have examined the books, Employee Benefit) Regulations,


papers, minute books, forms and 2014;
SECRETARIAL AUDIT REPORT
returns filed and other records
(e) The Securities and Exchange
FOR THE FINANCIAL YEAR ENDED maintained by company for the
Board of India (Issue and
MARCH 31, 2017 financial year ended on March 31,
Listing of Debt Securities)
2017 according to the provisions of:
[Pursuant to Section 204(1) of the Regulations, 2008;
Companies Act, 2013 and Rule No. (i) The Companies Act, 2013
(f) The Securities and Exchange
9 of the Companies (Appointment (the Act) and the rules made
Board of India (Registrars to
and Remuneration of Managerial thereunder;
an Issue and Share Transfer
Personnel) Rules, 2014]
(ii) The Securities Contracts Agents) Regulations, 1993
The Members, (Regulation) Act, 1956 and the regarding the Companies Act
Godrej Consumer Products Limited rules made thereunder; and dealing with clients;

We have conducted the secretarial (iii) The Depositories Act, 1996 and (g) The Securities and Exchange
audit of the compliance of the Regulations and bye-laws Board of India (Delisting of
applicable statutory provisions and framed thereunder; Equity Shares) Regulations,
the adherence to good corporate 2009; and
practices by Godrej Consumer (iv) Foreign Exchange Management
Products Limited (hereinafter called Act, 1999 and the rules and (h) The Securities and Exchange

the ‘Company’).The Secretarial regulations made thereunder Board of India (Buyback of

Audit was conducted in a manner to the extent of Foreign Direct Securities) Regulations, 1998;
that provided us a reasonable Investment, Overseas Direct
(vi) Other laws, as informed and
basis for evaluating the corporate Investment and External
certified by the Management
conduct/statutory compliances and Commercial Borrowings; of the Company which are
expressing our opinion thereon. specifically applicable to the
(v) The following Regulations and
Guidelines prescribed under the Company based on their sector/
Based on our verification of the
Securities and Exchange Board of industry are:
Company’s books, papers, minute
books, forms and returns filed and India Act, 1992 (‘SEBI Act’):- a. Insecticide Act, 1968 and rules
other records maintained by the made thereunder.
(a) The Securities and Exchange
company as well as the information
Board of India (Substantial b. Legal Metrology Act and rules
provided by the Company, its
Acquisition of Shares and made thereunder.
officers, agents and authorised
Takeovers) Regulations, 2011;
representatives during the conduct c. Drugs & Cosmetics Act, 1940.
of secretarial audit, we hereby report (b) The Securities and Exchange
We have also examined compliance
that in our opinion, the Company Board of India (Prohibition of
with the applicable clauses of the
has, during the audit period covering Insider Trading) Regulations, following:
the financial year ended on March 2015;
31, 2017 complied with the statutory (i) Secretarial Standards issued
(c) The Securities and Exchange by The Institute of Company
provisions listed hereunder and
Board of India (Issue of Capital Secretaries of India.
also that the Company has proper
and Disclosure Requirements)
Board processes and compliance (ii) The SEBI (Listing Obligations
Regulations, 2009;
mechanism in place to the extent, in and Disclosure Requirements)
the manner reported and subject to (d) The Securities and Exchange Regulations, 2015 / the Listing
the reporting made hereinafter: Board of India (Share based Agreements entered into by the

154 Annual Report 2016-17


Directors’ Report

Company with the BSE Limited iii. Acquired 75% stake in Canon have relied on the report of the
and The National Stock Exchange Chemicals Limited, Kenya. Statutory Auditors in respect of the
of India Limited. same as per the guidance of the
iv. Acquired balance 49% Stake in
Institute of Company Secretaries
During the period under review Charm Industries Limited, Kenya.
of India.
the Company has complied with
v. Acquired 100% stake in Darling
the provisions of the Acts, Rules, 4. Wherever required, we have
Regulations, Guidelines, Standards, Group’s business in Zambia and
obtained the management
etc. mentioned above. Senegal.
representation about the
We further report that For A. N. Ramani & Co., compliance of laws, rules and
Company Secretaries regulations and happening of
The Board of Directors of the Unique Code - P2003MH000900 events, etc.
Company is duly constituted with
a proper balance of Executive 5. The Company is following a
Directors, Non-Executive Directors system of obtaining reports
Bhavana Shewakramani
and Independent Directors. There from various departments
Partner
were no changes in the composition to ensure compliance with
FCS - 8636, COP –9577
of Board of Directors during the applicable laws. The company
Place: Thane
period under review. is following an electronic
Date: May 9, 2017
compliance management system
Adequate notice is given to all
Annexure to the Secretarial for compliance management
Directors to schedule the Board
Audit Report to ensure compliance with
Meetings; the agenda and related
applicable laws, rules, regulations
detailed notes on agenda were sent The Members
and guidelines.
at least seven days in advance. Godrej Consumer Products Limited
Furthermore, a system for seeking 6. The compliance of the provisions
and obtaining further information Our report of even date is to be read
of corporate and other applicable
and clarifications on the agenda along with this letter.
laws, rules, regulations and
items before the meeting exists 1. Maintenance of Statutory and standards is the responsibility of
for meaningful participation at the other records are the responsibility the management. Our examination
meeting. of the management of the was limited to the verification of
All the decisions were passed Company. Our responsibility is procedures on test basis.
unanimously in the meetings of the to express an opinion on these
7. The Secretarial Audit Report is
Board. records based on our audit.
neither an assurance as to the
We further report that there are 2. We have followed the audit future viability of the company nor
adequate systems and processes practices and processes as were of the efficacy or effectiveness
in the Company, commensurate appropriate to obtain reasonable with which the management
with the size and operations of the assurance about the correctness has conducted the affairs of the
Company, to monitor and ensure of the contents of the records. The company.
compliance with applicable laws, verification was done on test basis
For A. N. Ramani & Co.,
rules, regulations and guidelines. to ensure that correct facts are
Company Secretaries
reflected in records. We believe
We further report that during the Unique Code - P2003MH000900
that the processes and practices,
audit period the company has:
we followed provide a reasonable
i. Issued shares on exercise of basis for our opinion.
Bhavana Shewakramani
option under its Employee Stock
3. We have not verified the Partner
Grant Scheme.
correctness and appropriateness FCS - 8636, COP –9577
ii. Acquired 100% stake in Strength of the financial records and Books Place: Thane
of Nature LLC, USA of Accounts of the company. We Date: May 9, 2017

Godrej Consumer Products Limited 155


ANNEXURE ‘J’

Auditor’s Certificate on Corporate for ensuring compliance with the Opinion


Governance conditions of Corporate Governance.
In our opinion and to the best of
It is neither an audit nor an expression
To the Members of our information and according to
of opinion on the financial statements
Godrej Consumer Products Limited the explanations given to us and
of the Company.
the representations made by the
We have examined the compliance of
We have examined the books of Directors and the Management,
conditions of Corporate Governance
account and other relevant records we certify that the Company has
by Godrej Consumer Products
and documents maintained by complied with the conditions of
Limited (‘the Company’), for the
the Company for the purpose of Corporate Governance as stipulated
year ended on March 31, 2017, as
providing reasonable assurance in above-mentioned Listing
stipulated in Regulation 17 to 27 and
on the compliance with Corporate Regulations as applicable during the
clauses (b) to (i) of regulation 46(2)
Governance requirements by the year ended March 31, 2017.
and para C, D and E of Schedule V of
Company.
the Securities and Exchange Board We further state that such compliance
of India (Listing Obligations and We conducted our examination in is neither an assurance as to the
Disclosure Requirements) Regulation, accordance with the Guidance Note future viability of the Company nor the
2015 (‘Listing Regulations’). on Reports or Certificates for Special efficiency or effectiveness with which
Purposes (Revised 2016) issued by the Management has conducted the
Management’s Responsibility
the Institute of Chartered Accountants affairs of the Company
The compliance of conditions of India (‘ICAI’). The Guidance Note
of Corporate Governance is the requires that we comply with the For KALYANIWALLA & MISTRY LLP
responsibility of the Company’s ethical requirements of the Code of Chartered Accountants
Management including the Ethics issued by the ICAI. Firm Registration No. 104607W/
preparation and maintenance of all W100166
We have complied with the relevant
relevant supporting records and
applicable requirements of the Roshni R. Marfatia
documents.
Standard on Quality Control (SQC) 1, Partner
Auditor’s Responsibility Quality Control for Firms that Perform M. No.: 106548
Audits and Reviews of Historical
Our examination was limited to
Financial Information, and Other Mumbai: May 9, 2017
procedures and implementation
Assurance and Related Services
thereof, adopted by the Company
Engagements.

156 Annual Report 2016-17


Directors’ Report

This page has intentionally been left blank

Godrej Consumer Products Limited 157


Report on
Corporate
Governance
Company's Philosophy on the Corporate Governance 160

Other Disclosures 173

Declaration by the Managing Director 173


Report on
Corporate Governance

COMPANY’S PHILOSOPHY ON rating agency, namely the Investment 1. Board of Directors


CORPORATE GOVERNANCE Information and Credit Rating Agency
GCPL’s corporate governance
(ICRA). The Company continuous
Corporate governance refers practices are shaped by its
to enjoy the Corporate Governance
to the framework of rules and Board of Directors. The Board
Rating of CGR2+ (pronounced CGR
practices by which the Board is committed to protecting the
two plus) and the Stakeholder Value
ensures accountability, fairness, long-term interests of all our
Creation and Governance Rating of
and transparency in Company’s stakeholders, and considering
SVG1 (pronounced SVG one).
relationship with all its stakeholders. this, it provides objective
The two ratings indicate whether and prudent guidance to the
Godrej Consumer Products Limited a Company is being run on the Management. Information relating
(the Company) is a part of the principles of corporate governance, to procedures, composition,
120-year-old Godrej Group, which has and whether the practices followed and Committees of the Board is
established a reputation for honesty, by the Company lead to value provided below.
integrity, and sound governance. The creation for all its shareholders.
Company’s philosophy on corporate A. Board Procedures
The CGR2 rating is on a rating scale
governance envisages the attainment
of CGR1 to CGR6, where CGR1 GCPL currently has a
of the highest level of transparency,
denotes the highest rating. The 14-member Board, with seven
accountability, and equity in all facets
CGR2+ rating implies that, in ICRA’s Independent Directors, who
of its operations and in its interactions
current opinion, the Company has are eminent professionals from
with its stakeholders, including
adopted and follows such practices, diverse fields, with expertise
shareholders, employees, lenders,
conventions, and codes as would in finance, information
and the government. The Company
provide its financial stakeholders a systems, marketing, and
is committed to achieving and high level of assurance of the quality corporate strategy. None of the
maintaining the highest standards of of corporate governance. Independent Directors have
corporate governance. The Company
The SVG1 rating is on a rating scale previously had any material
believes that all its actions must serve
of SVG1 to SVG6, where SVG1 association with the Godrej
the underlying goal of enhancing
denotes the highest rating. The SVG1 Group. GCPL’s Board has a
overall stakeholder value over a
rating implies that, in ICRA’s current lead Independent Director,
sustained period of time.
opinion, the Company belongs to the in line with accepted best
Every year, since fiscal year 2002-03, highest category on the composite practices, to strengthen the
the Company has subjected itself to parameters of stakeholder value focus and improve the quality
a voluntary review of its corporate creation and management as also of discussion at the Board
governance practices by an external corporate governance practices. level.

160 Annual Report 2016-17


Report on Corporate Governance

The Board meets at least which consists entirely of Team of the Company. The
once in a quarter to review Independent Directors, have Independent Directors also
the Company’s quarterly a discussion with the Statutory have a meeting amongst
performance and financial Auditors, in the absence of themselves, after which
results. Board meetings the Management Team or they provide their insights
are governed with a Whole-time Directors. For all to the entire Board and the
structured agenda. The major items, comprehensive Management Team.
Board periodically reviews background information
During the year, the Company
the compliance reports is provided to the Board
conducted familiarisation
with respect to laws and to enable them to take an
programmes for Independent
regulations applicable to informed decision. Once a
Directors. The details for these
the Company. Before the year, Strategy meeting, is
are available under the link
commencement of the Audit conducted as a part of Board
given below. [1]
Committee meeting, members Meeting, in which the Board
of the Audit Committee, interacts with the Management

(i) Composition of the Board

The Board composition is as follows:

No. of Directors as on No. of Directors as on


Category
March 31, 2017 date of this Report
i) Non-Independent Directors
Executive Chairman 1 1
Managing Director 1 1
Executive Director 1 1
Non-Executive Promoter Directors 3 4
Sub Total 6 7
ii) Independent Directors 6 7
Total Strength (i + ii) 12 14

(ii) Other relevant details of the Directors as on March 31, 2017

Number of Committee positions including


directorships GCPL
held in Committee
Relationship
Name of Date of original Indian Public member
with other Category Committee
Directors appointment Limited (excluding Shares Held
Directors Chairperson
Companies Committee
**
(including Chairperson)
GCPL)* **
Brother of
Nadir Godrej, Promoter/
November 29, 5
Adi Godrej # Father of Tanya Executive 2 1 500
2000 (3)
Dubash and Chairman
Nisaba Godrej
Promoter/
Jamshyd 6
March 1, 2001 None Non- 0 2 1,606,808***
Godrej (4)
Executive

[1]
http://godrejcp.com/Resources/uploads/compliance_other_updates/FamiliarisationProgrammeforIDs201617.pdf

Godrej Consumer Products Limited 161


Number of Committee positions including
directorships GCPL
held in Committee
Relationship
Name of Date of original Indian Public member
with other Category Committee
Directors appointment Limited (excluding Shares Held
Directors Chairperson
Companies Committee
**
(including Chairperson)
GCPL)* **
Promoter/
November 29, Brother of 10
Nadir Godrej Non- 1 3 917,454
2000 Adi Godrej (6)
Executive
Daughter of Promoter/
Tanya Adi Godrej and Non- 7
May 2, 2011 1 1 1,071,054
Dubash Sister of Nisaba Executive (2)
Godrej
Daughter of
Nisaba Adi Godrej and Promoter/ 4
May 2, 2011 None None 1,071,061
Godrej # Sister of Tanya Executive (1)
Dubash
Managing
Vivek 2
April 30, 2013 None Director / None 2 39,123 ****
Gambhir ## (1)
Executive
Non-
Narendra 8
May 2, 2011 None Executive/ 1 8 1,000
Ambwani (4)
Independent
Non-
4
Bharat Doshi April 1, 2001 None Executive/ 1 2 13,714
(2)
Independent
Non-
Omkar 10
June 18, 2008 None Executive/ 1 8 Nil
Goswami (7)
Independent
Non-
6
Aman Mehta April 26, 2006 None Executive/ 2 4 Nil
(6)
Independent
Non-
D 2
April 1, 2009 None Executive/ None 2 Nil
Shivakumar (1)
Independent
Non-
8
Ireena Vittal April 30, 2013 None Executive/ None 9 Nil
(6)
Independent

* Does not include directorship in Private Companies, Section 8 Companies, and Foreign Companies

** Does not include Chairmanship/Membership in Board Committees other than Audit Committee and
Stakeholders’ Relationship Committee, and in companies other than public limited companies registered in
India

*** Held as one of the Trustee of Raika Godrej Family Trust

****Under the Employee Stock Grant Scheme of the Company, Mr. Vivek Gambhir additionally holds 33,067
options that are convertible into equivalent equity shares on their vesting and exercise. The options will vest in
tranches and the same has to be exercised within 1 month of the respective vesting dates

# Ms. Nisaba Godrej has been appointed as the Executive Chairperson of the Company w.e.f. May 10, 2017
while Mr. Adi Godrej will continue to be the whole time Director and assume the position of Chairman Emeritus.

## Mr. Vivek Gambhir has been re-designated as Managing Director & CEO w.e.f. May 9, 2017.

162 Annual Report 2016-17


Report on Corporate Governance

Notes:

• Figures in bracket denotes directorship in listed companies.

• Brief profiles of all the Directors is available on the Company website www.godrejcp.com

(iii) Re-appointment of Regulations) and Mr. Adi Godrej will continue


Directors liable to retire Pirojsha Godrej being as Whole time Director
by rotation part of the promoter and assume the position
group would be a Non- of Chairman Emeritus
The Board has five
Independent Director. with effect from May 10,
Directors whose period
Ms. Ndidi Nwuneli is 2017. Mr. Vivek Gambhir,
of office is liable to be
appointed as a member Managing Director, has
determined for retirement
of Audit Committee and been designated as
by rotation, and among
Nomination & Remuneration Managing Director and
these five Directors, one-
Committee consequent CEO with effect from May 9,
third i.e. two Directors,
to her appointment on 2017.
shall retire at the Annual
the Board. As per the
General Meeting (AGM). B. Committees of the Board
provisions of Section 160 of
Thus, Mr. Nadir Godrej and
the Companies Act, 2013,
Mr. Jamshyd Godrej shall The Company has constituted
the Company has received
retire at the ensuing AGM Audit Committee in
a notice from a member
of the Company and, being accordance with Section
specifying intention to
eligible, are considered for 177 of the Companies Act,
propose the appointment of
re-appointment. Their brief 2013 and Regulation 18 of
Mr. Pirojsha Godrej and
resume is annexed to the the Listing Regulations. The
Ms. Ndidi Nwuneli as
Notice of the AGM. Stakeholders’ Relationship
Directors in the forthcoming
Committee formed in
(iv) Appointment of new AGM. Furthermore, a
accordance with Regulation 20
Directors on the Board specific resolution is
of the Listing Regulations and
included in the Notice of
The Board, at its meeting AGM for the appointment Section 178 of the Companies
held on January 30, of Ms. Ndidi Nwuneli as an Act, 2013 inter alia looks into
2017 has approved the Independent Director for a the investor grievances. The
appointment of Ms. Ndidi period of 5 years with effect Company has also formed a
Nwuneli and Mr. Pirojsha from April 1, 2017. Nomination & Remuneration
Godrej as Additional Committee in accordance
(v) Change in Leadership with Section 178 of the
Directors on the Board
Positions Companies Act, 2013 and
of the Company with
effect from April 1, The Board at its meeting Regulation 19 of the Listing
2017. Ms. Ndidi Nwuneli held on May 9, 2017, Regulations, which looks after
meets the criteria for approved the changes in the appointment, remuneration,
Independent Director as the leadership positions and performance evaluation
per the provisions of the of the Company. Ms. of the Directors. The Company
Companies Act, 2013 and Nisaba Godrej, who was also has a Risk Management
SEBI (Listing Obligations & an Executive Director, Committee in accordance with
Disclosure Requirements) will now be the Executive Regulation 21 of the Listing
Regulations, 2015 (Listing Chairperson, and Mr. Regulations.

Godrej Consumer Products Limited 163


Composition of Committees as on March 31, 2017
Position in the Committee
Nomination & Stakeholders’ Risk
Name of Directors Category Audit
Remuneration Relationship Management
Committee
Committee Committee Committee
Adi Godrej Promoter, Executive None None Member None
Jamshyd Godrej Promoter, Non-Executive None None Member None
Nadir Godrej Promoter, Non-Executive None None Chairman None
Tanya Dubash Promoter, Non-Executive None None None None
Nisaba Godrej Promoter, Executive None None None Member
Vivek Gambhir Executive None None Member Member
Narendra Ambwani Independent Member Chairman None None
Bharat Doshi Independent Chairman Member None None
Omkar Goswami Independent Member Member None Chairman
Aman Mehta Independent Member Member None None
D Shivakumar Independent Member Member None None
Ireena Vittal Independent Member Member None None
Total Strength of the Committee 6 6 4 5
No. of Independent Directors in the Committee 6 6 - 1
No. of Non-Independent Directors in the Committee - - 4 2
Members of Senior Management in the Committee - - - 2

Mr. V. Srinivasan, Chief Financial Officer & Company Secretary, was the Secretary for all the Committees during
fiscal year 2016-17. He is also the Compliance Officer of the Company and is responsible for redressal of investor
grievances

C. Attendance Details for Board/Committee Meetings and the Last AGM

Nomination & Stakeholders’ Risk


Audit AGM
Name of Meeting Board Remuneration Relationship Management
Committee July 29, 2016
Committee Committee Committee
No. of Meetings held> 4 4 4 12 2
Attendance of the Director
Adi Godrej 4 NA NA 11 NA Yes
Jamshyd Godrej 4 NA NA 7 NA Yes
Nadir Godrej 4 NA NA 12 NA Yes
Tanya Dubash 4 NA NA NA NA Yes
Nisaba Godrej 4 NA NA NA 1 Yes
Vivek Gambhir 4 NA NA 8 2 Yes
Narendra Ambwani 4 4 4 NA NA Yes
Bharat Doshi 4 4 4 NA NA Yes
Omkar Goswami 4 4 4 NA 2 Yes
Aman Mehta 4 4 4 NA NA Yes
D Shivakumar 4 4 4 NA NA Yes
Ireena Vittal 4 4 4 NA NA Yes

Notes:

• The Board, Audit Committee, and Nomination & Remuneration Committee meetings were held on May 3, 2016;
July 29, 2016; November 7, 2016; and January 30, 2017

• The maximum gap between any two Board meetings did not exceed 120 days during the year

• The Stakeholders’ Relationship Committee meetings were held on April 6, 2016; May 12, 2016; June 28, 2016;
August 1, 2016; August 11, 2016; September 9, 2016; October 6, 2016; November 15, 2016; December 13,
2016; January 5, 2017; February 13, 2017; and March 9, 2017

164 Annual Report 2016-17


Report on Corporate Governance

• The Risk Management Committee meetings were held on July 8, 2016 and January 24, 2017. Members from
Senior Management team i.e. Omar Momin & Sunil Kataria have attended 2 and 1 Meeting respectively

• Leave of absence was granted to the Directors / Committee Members whenever they could not be physically
present for the meeting

• ‘NA’ indicates not a member of the Committee

D. Terms of reference of Board Statement to be raised through an issue,


Committees included in the Board’s such as public, rights, or
Report in terms of preferential issues, the
(i) Audit Committee: statement of funds used
clause (c) of sub-
The terms of reference section (3) of Section for purposes other than
for the Audit Committee 134 of the Companies those stated in the offer
includes the matters Act, 2013, document/prospectus/
specified in Section 177 notice, and the report
(b) changes, if any, in submitted by the monitoring
of the Companies Act,
accounting policies and agency monitoring the
2013 as well as in Part C of
practices and reasons utilisation of proceeds of
Schedule II of the Listing
for the same, a public or rights issue,
Regulations such as:
and making appropriate
(c) major accounting
(1) supervision of the recommendations to the
entries involving
Company’s financial Board to initiate steps in
reporting process and estimates based on the
this matter;
disclosure of its financial exercise of judgment by
information to ensure that the Management; (7) review and monitor the
the financial statement auditor’s independence
(d) significant adjustments
is correct, sufficient, and and performance, and
made in the financial
credible; effectiveness of the audit
statements arising out of process;
(2) recommendation for audit findings,
(8) approval or any subsequent
appointment, remuneration,
(e) compliance with modification of transactions
and establishment of terms
listing and other legal of the Company with
of appointment of auditors
requirements relating to related parties;
of the Company;
financial statements,
(9) scrutiny of intercorporate
(3) approval of payment to
(f) disclosure of any loans and investments;
statutory auditors for any
Related Party
other services rendered by (10) valuation of undertakings
Transactions,
them; or assets of the Company,
(g) modification of wherever necessary;
(4) review, with the
Management, the annual opinion(s) in the draft
(11) evaluation of internal
financial statements and audit report;
financial controls and risk
auditor’s report thereon (5) review, with the management systems;
before submission to the Management, quarterly
board for approval, with (12) review, with the
financial statements before
Management, the
particular reference to the submission to the Board for
performance of the
following: approval;
Statutory Auditors and
(a) matters required to (6) review, with the internal auditors and
be included in the Management, the statement adequacy of internal control
Director’s Responsibility of application of funds systems;

Godrej Consumer Products Limited 165


(13) review the adequacy of after assessing the the Board of Directors
the internal audit function, qualifications, experience, their appointment and
if any, including the and background of the removal;
structure of the internal candidate;
(5) deciding whether to
audit department, staffing
(20) performance of any other extend or continue the
and seniority of the official
function as is mentioned in term of appointment
heading the department,
the terms of reference of of Independent
reporting structure
the Audit Committee. Directors, on the
coverage, and frequency of
internal audit; basis of the reports
(ii) Nomination & of their performance
(14) discussion with internal Remuneration Committee: evaluation. The criteria
auditors of any significant for the evaluation
The terms of reference
findings and follow-up there of Independent
of the Nomination &
on; Directors include
Remuneration Committee
(15) reviewing the findings of are as follows: skills, experience and
any internal investigations level of preparedness
(1) formulating criteria of the Directors,
by the internal auditors into
for determining attendance and extent
matters in which fraud or
the qualifications, of contribution to Board
irregularity is suspected
positive attributes, debates and discussion,
or of an occurrence of a
and independence and how the director
material failure of internal
of Directors and leverages his/her
control systems and
recommending to the expertise and networks
reporting the matter to the
Board of Directors to meaningfully
board;
a policy relating to contribute to the
(16) discussion with the the remuneration of Company.
Statutory Auditors, before the Directors, Key
the audit commences, Managerial Personnel, (iii) Stakeholders’
regarding the nature and and other employees; Relationship Committee
scope of the audit as well
(2) formulating criteria The terms of reference
as post-audit discussion
to ascertain any area of for evaluating the of the Stakeholders’
concern; performance of Relationship Committee is
Independent Directors redressal of grievances of
(17) identification of the and the Board of shareholders, debenture
reasons for substantial
holders, and other security
defaults in payments to Directors;
holders. The Committee
depositors, debenture
(3) devising a policy on the shall consider and resolve
holders, shareholders (in
diversity of the Board of the grievances of the
case of non-payment of
Directors; security holders of the
declared dividends), and
creditors; (4) identifying individuals Company, including
who are qualified to complaints like transfer/
(18) review the functioning transmission of shares,
become directors and
of the Whistle Blower non-receipt of Annual
who may be appointed
mechanism;
in Senior Management, Report, and non-receipt of
(19) approval of the in accordance with declared dividends as well
appointment of Chief the criteria laid down, as those required under the
Financial Officer and recommend to Companies Act, 2013.

166 Annual Report 2016-17


Report on Corporate Governance

(iv) Risk Management planned; techniques and


Committee c) review progress and enhance awareness.
The terms of reference status of mitigation for
2. Remuneration Policy
of the Committee are as the ‘Risks that matter’;
follows: d) set standards for risk The Remuneration Policy of the
a) spearhead risk documentation and Company has been provided in
management initiatives monitoring; the Directors’ Report section of the
within the Company; Annual Report as Annexure ‘A’.
e) improve risk
b) review status of actions management

Remuneration to Directors:

The details of the remuneration to Directors are as follows:


` in crore
Salary,
Company’s Monetary
Commission Allowances
Name of Director Sitting Fees Contribution PLVR Value of Total
QP2TQſVU and Other
to PF Perquisites
$GPGſVU
Whole-Time Directors
Adi Godrej - - 5.75 0.21 5.47 2.31 13.75
Nisaba Godrej 3.17 0.15 1.83 0 5.15
Vivek Gambhir 6.59 0.29 6.15 2.92 15.95
Non-Executive Directors
Jamshyd Godrej 0.04 0.15 - - - - 0.19
Nadir Godrej 0.04 0.15 - - - - 0.19
Tanya Dubash 0.04 0.15 - - - - 0.19
Narendra Ambwani 0.06 0.15 - - - - 0.21
Bharat Doshi 0.06 0.15 - - - - 0.21
Omkar Goswami 0.06 0.15 - - - - 0.21
Aman Mehta 0.06 0.15 - - - - 0.21
D Shivakumar 0.06 0.15 - - - - 0.21
Ireena Vittal 0.06 0.15 - - - - 0.21
Total 0.48 1.35 15.51 0.65 13.45 5.24 36.68

Notes:
• In case of Mr. Adi Godrej, salary includes the basic salary and various elements of flexible compensation. The
monetary value of perquisites includes accommodation, car, electricity expenses; reimbursement of medical/
hospitalisation expenses incurred for self and family; and medical insurance premium paid by the Company.
• In case of Ms. Nisaba Godrej and Mr. Vivek Gambhir, salaries include the basic salary and various elements of
flexible compensation. Additionally, the perquisites received by Mr. Vivek Gambhir include value of stock grants.
• The Performance-Linked Variable Remuneration (PLVR) to Mr. Adi Godrej, Ms. Nisaba Godrej, and Mr. Vivek
Gambhir is the amount payable for fiscal year 2016-17, as per the scheme of the Company. It is based on the
profitability and optimum utilisation of capital employed over the past year.
• Non-Executive Directors are paid commission on profits at a rate not exceeding 1 per cent of the Net Profits of
the Company in any fiscal year (computed in the manner provided in Section 197 and 198 of the Companies Act,
2013) or ` 15 lakhs per Director per annum, whichever is lower.
• The Independent Directors were originally appointed in terms of the erstwhile Listing Agreement (refer the
table containing other relevant details of the Directors under Para 1 of Board of Directors for the original date of
appointment). After the notification of Companies Act, 2013, all the Independent Directors have been appointed
for a period of 5 years.

Godrej Consumer Products Limited 167


• Mr. Vivek Gambhir has been granted stock options as detailed below:
Grant year No. of options Options exercised Options outstanding Vesting dates of outstanding options
2014-15 23,118 15,412 7,706 May 31, 2017
2015-16 17,798 5933 5,933 May 31, 2017
5,932 May 31, 2018
2016-17 13,496 Nil 4,499 June 30, 2017
4,499 May 31, 2018
4,498 May 31, 2019

3. Details of stakeholder complaints


Total complaints Total Total Total Complaints not
Sr. pending at the complaints complaints complaints resolved to the
Nature of complaint
No. beginning of the received replied during pending at the satisfaction of
year during the year the year end of the year shareholders

1. Non-receipt of Dividend Nil 71 71 0 0

2. Non-receipt of shares lodged Nil 49 49 0 0


for transfer/exchange

3. Non-receipt of Annual Report Nil 11 11 0 0

4. Others Nil 0 0 0 0

Total Nil 131 131 0 0

4. General Body Meetings

A. Annual General Meeting

Details last three AGMs of the Company are as follows:


Date Time Venue Details of special resolutions passed
July 28, 2014 3.30 p.m. Y. B. Chavan Centre, 2C[OGPVQHEQOOKUUKQPQPRTQſVUVQ0QP
General Jagannath Bhosale Marg, Nariman Executive Directors at a rate not exceeding 1 per
Point, Mumbai - 400021 EGPVQHVJG0GV2TQſVUQHVJG%QORCP[KPCP[
ſUECN[GCT
EQORWVGFKPVJGOCPPGTRTQXKFGF
in Section 197 and 198 of the Companies Act,
2013) or `15 lakh per director per annum,
whichever is lower
July 29, 2015 3.30 p.m. Y. B. Chavan Centre, General Jagannath z Private placement of Non-Convertible
Bhosale Marg, Nariman Point, Debentures up to an amount of ` 300 crore
Mumbai - 400021 z Approval for acquiring and holding of equity
shares by Foreign Institutional Investors upto
a limit of 40 per cent of the paid-up equity
share capital of the Company
July 29, 2016 4.00 p.m. Godrej One, 1st Floor Auditorium, Pirojshanagar, Re-appointment of Mr. Adi Godrej as Whole-time
Eastern Express Highway, Vikhroli (East), Director, designated as Chairman
Mumbai - 400079

B. Postal Ballot
There were no special resolutions passed during the year 2016-17 through postal ballot.

168 Annual Report 2016-17


Report on Corporate Governance

5. Means of Communication in link below [2]. The quarterly, after. The presentations made to
half-yearly, and annual results of financial analysts and institutional
GCPL sends quarterly newsletters
the Company’s performance are investors are filed with BSE and
to the registered email addresses
generally published in leading NSE and are also uploaded on the
of the investors. Moreover, all
English daily newspapers, such Company website www.godrejcp.
vital information related to the
as The Economic Times, Business com. The Company files its
Company and its performance,
Line, and Mint, as well as in the quarterly results on the electronic
including quarterly results, press
Marathi newspaper Maharashtra filing system of BSE and NSE. The
releases, performance updates,
Times. The Company holds quarterly results are also available
and corporate presentations, as
conference calls and meetings on the Stock Exchange websites
well as the information required by
with financial analysts once in viz. www.bseindia.com and www.
the Listing Regulations are posted
a quarter, and their transcripts nseindia.com.
on the Company website given
are posted on the website soon

6. General Shareholder Information

A. Annual General Meeting

Date and Time: Monday, July 31, 2017, at 3.00 p.m.


Venue : Godrej One, 1st Floor Auditorium, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai - 400 079

B. Financial Calendar

Financial year: April 1, 2016 to March 31, 2017

C. Dividends for FY 2016–17

Declared at Dividend rate per share on shares of face


Dividend type Record date
Board Meeting dated value ` 1 each
UV+PVGTKOHQTſUECN[GCT July 29, 2016 ` 1.00 August 22, 2016
2016-17
PF+PVGTKOHQTſUECN[GCT November 7, 2016 ` 1.00 November 30, 2016
2016-17
TF+PVGTKOHQTſUECN[GCT January 30, 2016 ` 1.00 February 21, 2017
2016-17
VJ+PVGTKOHQTſUECN[GCT May 9, 2017 ` 12.00 May 31, 2017
2016-17
TOTAL ` 15.00

Note: Since your Company has adopted IND AS, accounting of dividends will be done based on the payment of
dividend and hence, the 4th Interim Dividend of the fiscal year 2015-16 has been accounted for in the fiscal year
2016-17. Similarly, the 4th Interim Dividend of the fiscal year 2016-17, will be accounted in the fiscal year 2017-18.

D. Listing
The Company’s shares are listed and traded on the following Stock Exchanges:

ISIN number for NSDL/


Name & Address of the Stock Exchange Segment Stock/Scrip Code
CDSL
BSE Limited Equity 532424
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai - 400001
INE102D01028
The National Stock Exchange of India Limited Equity; GODREJCP
Exchange Plaza, Bandra Kurla Complex, Futures & Options (F&O)
Bandra (East), Mumbai - 400051

The applicable annual listing fees has been paid to the Stock Exchanges before the due date.
[2]
http://www.godrejcp.com/investor-updates.aspx

Godrej Consumer Products Limited 169


E. Market Price Data

The monthly high and low prices of GCPL at BSE and NSE in equity series for the year ended March 31, 2017, are
as follows:
BSE NSE
Month
High Low High Low
Apr-16 1,433.00 1,310.00 1,434.00 1,308.60
May-16 1,535.55 1,305.00 1,536.85 1,302.20
Jun-16 1,614.80 1,464.00 1,620.00 1,462.90
Jul-16 1,676.40 1,551.50 1,689.90 1,551.35
Aug-16 1,630.00 1,480.20 1,613.00 1,478.25
Sep-16 1,710.00 1,530.00 1,715.00 1,520.05
Oct-16 1,669.05 1,556.75 1,668.00 1,552.10
Nov-16 1,604.00 1,285.55 1,611.65 1,272.20
Dec-16 1,520.90 1,413.15 1,523.70 1,411.15
Jan-17 1,615.40 1,497.20 1,615.80 1,492.90
Feb-17 1,748.90 1,539.00 1,751.00 1,536.00
Mar-17 1,712.00 1,595.00 1,720.00 1,591.10

Source: Websites of the respective stock exchanges

Note: The high and low prices are in rupees per traded share

F. GCPL’s share price at BSE versus Sensex

GCPL’s share performance compared with the BSE Sensex for fiscal year 2016-17 is as follows:

140

120

100

80

60

40
Sensex GCPL
20

0
May 16

Aug 16

Dec 16
Sep 16

Nov 16

Feb 17

Mar 17
Apr 16

Jun 16

Oct 16

Jan 17
Jul 16

Note:

• Both BSE Sensex and GCPL share price are indexed to 100 at the beginning of the fiscal year

G. Registrar and Transfer Email ID: Sharecap Limited, registered


Agents gcpl@computechsharecap.in with SEBI as a Category I
Website: Registrar. Share transfer is
Computech Sharecap Limited,
www.computechsharecap.com normally effected within a
147, M.G. Road,
Opp. Jehangir Art Gallery, H. Share transfer maximum of 15 days from
Mumbai - 400001 GCPL’s share transfers and the date of receipt, if all the
Tel. No.: 022 22635000/01 other related operations are required documentation is
Fax: 022 22635005 performed by Computech submitted.

170 Annual Report 2016-17


Report on Corporate Governance

I. Distribution of Shareholding

Distribution of shareholding by size class as on March 31, 2017


Number of Number of shares
Number of shares Shareholders % Shareholding %
shareholders held
1–500 74,910 91.00 8,188,088 2.40
501–1,000 4,649 5.65 3,134,356 0.92
1,001–2,000 1,444 1.75 2,036,004 0.60
2,001–3,000 332 0.40 825,839 0.24
3,001–4,000 130 0.16 465,606 0.14
4,001–5,000 108 0.13 499,795 0.15
5,001–10,000 214 0.26 1,543,314 0.45
10,001 & above 532 0.65 323,907,814 95.10
Total 82,319 100.00 340,600,816 100.00

Distribution of shareholding by ownership as on March 31, 2017


Category Shares held (No.) % of holding
Promoter’s Holding
Promoters 215,496,082 63.27
Institutional Investors
Mutual Funds 2,096,189 0.62
Banks 31,322 0.01
Financial Institutions 608,559 0.18
Insurance Companies 4,628,114 1.36
Foreign Institutional Investors 96,817,567 28.43
Others
Private Corporate Bodies 3,392,858 1.00
Indian Public 16,176,289 4.75
NRI/OCB’s 1,353,836 0.40
Total 340,600,816 100.00

J. Shares held in the Physical and Dematerialised Forms

Breakup of physical and dematerialised shares as on March 31, 2017


Number of shares % Number of folios %
Physical 5,237,266 1.54 31,322 38.05
Demat 335,363,550 98.46 50,997 61.95
Total 340,600,816 100.00 82,319 100.00

Shares in the demat form have more liquidity compared with shares in the physical form. Therefore, the Company
recommends that shareholders holding shares in physical form shall convert their shareholding to demat form.

K. Outstanding GDRs/ADRs/ L. Commodity Price Risk or has entered into forward


Warrants/Convertible Foreign Exchange Risk and contracts to hedge some of
Instruments and their Impact Hedging Activities the risks. Details of hedged
on Equity and unhedged positions
The Company has foreign
are available in the Notes to
GCPL does not have any exchange risk, and the
Financial Statements section of
outstanding GDRs/ADRs/ mitigation of the same is
the Annual Report.
warrants/convertible managed by the Forex
instruments. Committee. The Company

Godrej Consumer Products Limited 171


M. Plant Locations

The Company’s plants are located at the following places:


Name of the State/ Union Territory Location of Plant
Jammu & Kashmir SICOP Industrial Estate, Kathua
Himachal Pradesh Thana, Baddi; Katha, Baddi
Sikkim Namchi
Assam Village Sila, Guwahati; Kalapahar, Lokhra, Guwahati
Meghalaya Burnihat, Rebhoi District
Madhya Pradesh Malanpur, District Bhind
Pondicherry Kattukuppam, Manpet Post, Mannadipet Commune
Tamil Nadu Nedungadu Commune, Karaikal and Thirunallar Commune, Karaikal; Maraimalainagar,
Kanjipuram

N. Address for Correspondence O. Electronic Credit of Dividend to provide details to NSDL/


CDSL through their respective
Members can contact us at our The Company encourages
depository participants.
Registered Office: the shareholders to opt for
electronic credit of dividend. It may be noted that if the
Godrej Consumer Products
The system is administered shareholders holding shares
Limited, 4th Floor, Godrej One,
by the Reserve Bank of in demat form provide details
Pirojshanagar, Eastern Express
India, which ensures faster directly to the Company, the
Highway, Vikhroli (East),
credit of dividends because Company will not be able to
Mumbai - 400 079
dividends are directly credited process the form. Hence,
Tel. No. : 022 25188010/20/30 in electronic form in the bank shareholders are requested to
Fax No.: 022 25188040 account of the shareholders. update the details directly with
Email ID: investor.relations@ Moreover, by availing this their Depositary Participant.
godrejcp.com facility, shareholders avoid
the risk of loss of dividend P. Consolidation of Shares
Website: www.
warrants in transit or fraudulent under one folio
godrejcp.com CIN:
encashment. Shareholders
L24246MH2000PLC129806 The Company urges
who hold shares in the physical
Investor correspondence form and have not opted shareholders holding shares
should be addressed to M/s. for the above system may under different folios to
Computech Sharecap Limited provide the required data to consolidate the shares
at the details mentioned in Computech Sharecap Limited under one folio. This would
Point No. G above. To allow in the requisite form, which substantially reduce paperwork
us to serve shareholders with can be obtained from the and transaction costs, and
higher speed and efficiency, Company’s Registered Office benefit the shareholders and
the Company strongly or M/s. Computech Sharecap the Company. Shareholders
recommends email-based Limited or the Company can do so by writing to the
correspondence on all website www.godrejcp.com Registrar with details such
issues, which do not require under the Investers tab. as folio numbers, order of
signature verification for being Shareholders holding shares in names, shares held under
processed. the demat form are requested each folio, and the folio under

172 Annual Report 2016-17


Report on Corporate Governance

which all shareholding should C. Vigil Mechanism/ Whistle Certificate regarding the
be consolidated. Share Blower policy compliance of conditions of
certificates need not be sent. corporate governance is attached
With a view to establish a
with the Directors’ Report.
7. Other Disclosures mechanism for protecting
employees reporting unethical Declaration by the Managing
 # /CVGTKCNN[UKIPKſECPV4GNCVGF behaviour, frauds, or violation Director
Party Transaction that may of the Company’s Code of
RQVGPVKCNN[EQPƀKEVYKVJVJG I, Vivek Gambhir, Managing Director
Conduct, the Board has
Company’s interest & CEO of Godrej Consumer Products
adopted a Whistle Blower
Limited (GCPL) hereby confirm
During fiscal year 2016-17, Policy. No person has been
pursuant to SEBI (Listing Obligations
there were no materially denied access to the Audit
& Disclosure Requirements)
significant Related Party Committee.
Regulations, 2015 that
Transactions i.e. transactions
of the Company of material D. Web link for Policies • The Board of Directors of GCPL
nature with bodies including The Whistle Blower Policy, the has laid down a Code of Conduct
its subsidiaries, promoters, Policy for determining Material for all the Board members and
directors, management, and Senior Management of the
Subsidiaries, and the Policy
relatives, which may have Company. The said Code of
on dealing with Related Party
potential conflict with the Conduct has also been posted
Transactions are available
interests of the Company at on the Company website and
under the link given below. [3]
large. Attention of members is available under the link given
is drawn to disclosures of E. Details of Compliance with below [3].
transactions with related Corporate Governance
parties, as set out in the Notes • All the Board Members and Senior
Requirements
to Accounts. Management Personnel have
The Company has complied affirmed their compliance with the
B. Details of Non-compliance with the requirements specified said Code of Conduct for the year
There has not been any non in Regulation 17 to 27 and ended March 31, 2017.
compliance of mandatory clause (b) to (i) of sub -
requirements, expected of regulation (2) of Regulation 46
the Company. No penalties of Listing Regulations. For Godrej Consumer Products Ltd.
or strictures were imposed
8. Auditor’s Certificate on sd/-
on the Company by the Stock
Corporate Governance
Exchanges, SEBI, or any
Vivek Gambhir
statutory authority for matters As stipulated in Para E of
Managing Director & CEO
related to capital markets Schedule V of the Listing
during the last 3 years. Regulations, the Auditor’s Mumbai, May 9, 2017

[3]
http://www.godrejcp.com/codes-and-policies.aspx

Godrej Consumer Products Limited 173


Standalone
Financials
Independent auditor's report 176

Balance sheet as at March 31, 2017 184

5VCVGOGPVQH2TQſVCPF.QUUHQTVJG[GCTGPFGF/CTEJ 185

5VCVGOGPVQH%CUJ(NQYUHQTVJG[GCTGPFGF/CTEJ 186

5VCVGOGPVQH%JCPIGUKP'SWKV[HQTVJG[GCTGPFGF/CTEJ 188

0QVGUVQVJG(KPCPEKCN5VCVGOGPVHQTVJG[GCTGPFGF/CTEJ 189
INDEPENDENT AUDITOR’S records in accordance with the the disclosures in the standalone
REPORT provision of the Act for safeguarding Ind AS financial statements. The
TO THE MEMBERS OF GODREJ the assets of the Company and for procedures selected depend on the
CONSUMER PRODUCTS LIMITED preventing and detecting frauds and auditor’s judgment, including the
other irregularities; selection and assessment of the risks of material
Report on the Standalone IND AS application of appropriate accounting misstatement of the standalone Ind
Financial Statements policies; making judgments and AS financial statements, whether
We have audited the accompanying estimates that are reasonable and due to fraud or error. In making
standalone Ind AS financial prudent; and design implementation those risk assessments, the auditor
statements of GODREJ CONSUMER and maintenance of adequate internal considers internal financial control
PRODUCTS LIMITED (“the financial controls, that were operating relevant to the Company’s preparation
Company”), which comprise the effectively for ensuring the accuracy of the standalone Ind AS financial
Balance Sheet as at March 31, 2017, and completeness of the accounting statements that give a true and
the Statement of Profit and Loss records, relevant to the preparation fair view in order to design audit
(including other comprehensive and presentation of the standalone procedures that are appropriate in the
income), the Statement of Cash Flows Ind AS financial statements that give circumstances. An audit also includes
and the Statement of Changes in a true and fair view and are free from evaluating the appropriateness of
Equity for the year then ended, and material misstatement, whether due to the accounting policies used and the
a summary of significant accounting fraud or error. reasonableness of the accounting
policies and other explanatory estimates made by the Company’s
information (hereinafter referred Auditor’s Responsibility Directors, as well as evaluating the
to as ‘Standalone Ind AS financial Our responsibility is to express an overall presentation of the standalone
statements’). opinion on these standalone Ind AS Ind AS financial statements.
financial statements based on our We believe that the audit evidence
Management’s Responsibility for audit. we have obtained is sufficient and
the Standalone Ind AS Financial We have taken into account the appropriate to provide a basis for our
Statements provisions of the Act, the accounting audit opinion on the standalone Ind
The Company’s Board of Directors and auditing standards and matters AS financial statements.
is responsible for the matters in which are required to be included in
Section 134(5) of the Companies the audit report under the provisions Opinion
Act, 2013 (“the Act”) with respect to of the Act and the Rules made In our opinion and to the best of
the preparation of these standalone thereunder. our information and according to
Ind AS financial statements that give We conducted our audit in the explanations given to us, the
a true and fair view of the financial accordance with the Standards aforesaid standalone Ind AS financial
position, financial performance on Auditing specified under statements give the information
including other comprehensive Section 143(10) of the Act. Those required by the Act in the manner so
income, cash flows and changes in Standards require that we comply required and give a true and fair view
equity of the Company in accordance with ethical requirements and plan in conformity with the accounting
with the accounting principles and perform the audit to obtain principles generally accepted in
generally accepted in India, including reasonable assurance about whether India including the Ind AS, of the
the Indian Accounting Standards (Ind the standalone Ind AS financial financial position of the Company as
AS) prescribed under section 133 statements are free from material at March 31, 2017 and its financial
of the Act, read with relevant rules misstatement. performance including other
issued thereunder. An audit involves performing comprehensive income, its cash flows
This responsibility also includes procedures to obtain audit and the changes in equity for the year
maintenance of adequate accounting evidence about the amounts and ended on that date.

176 Annual Report 2016-17


Standalone Financials

Report on Other Legal and appointed as a director in 2016 to 30th December,


Regulatory Requirements terms of Section 164 (2) of the 2016. Based on audit
1. As required by the Companies Act. procedures and relying
(Auditor’s Report) Order, 2016 f) With respect to the adequacy on the management
(“the Order”) issued by the Central of the internal financial controls representation we report
Government of India in terms of over financial reporting of the that the disclosures are in
sub-section (11) of section 143 of Company and the operating accordance with books of
the Act, we give in the Annexure effectiveness of such controls, account maintained by the
A, a statement on the matters refer to our separate report in Company and as produced
specified in the paragraph 3 and 4 Annexure B. to us by the Management
of the Order. g) With respect to the other – Refer Note 47 to the
2. As required by Section 143 (3) of matters to be included in the standalone Ind AS financial
the Act, we report that: Auditor’s Report in accordance statements.
a) We have sought and obtained with Rule 11 of the Companies
all the information and (Audit and Auditors) Rules, For KALYANIWALLA & MISTRY LLP
explanations which to the 2014, in our opinion and to the Chartered Accountants
best of our knowledge and best of our information and Firm Registration No. 104607W/
belief were necessary for the according to the explanations W100166
purposes of our audit. given to us:
b) In our opinion, proper books i. The Company has Roshni R. Marfatia
of account as required by disclosed the impact of Partner
law have been kept by the pending litigations on its M. No.: 106548
Company so far as it appears financial position in its
from our examination of those standalone Ind AS financial Mumbai: May 09, 2017
books. statements – Refer Note 40
c) The Balance Sheet, the to the standalone Ind AS ANNEXURE A TO THE
Statement of Profit and financial statements. INDEPENDENT AUDITOR’S
Loss (including other ii. The Company did REPORT
comprehensive income), the not have any material
Referred to in Para 1 ‘Report on Other
Statement of Cash Flows and foreseeable losses on long
Legal and Regulatory Requirements’
the Statement of Changes in term contracts including
in our Independent Auditors’ Report
Equity dealt with by this Report derivative contracts
to the members of the Company
are in agreement with the requiring provision under
on the standalone Ind AS financial
books of account. the applicable law or
statements for the year ended March
d) In our opinion, the aforesaid accounting standards.
31, 2017.
standalone Ind AS financial iii. There has been no delay
in transferring amounts, Statement on Matters specified in
statements comply with the
required to be transferred, paragraphs 3 & 4 of the Companies
Indian Accounting Standards
to the Investor Education (Auditor’s Report) Order, 2016:
prescribed under section 133
and Protection Fund by the i) a) The Company has maintained
of the Act, read with relevant
rules issued thereunder. Company. proper records showing
e) On the basis of the written iv. The Company has provided full particulars, including
representations received from requisite disclosures in quantitative details and
the directors as on March 31, the financial statements situation of fixed assets;
2017 taken on record by the as to holdings as well b) As explained to us, the
Board of Directors, none of as dealings in Specified Company has a program for
the directors is disqualified as Bank Notes during the physical verification of fixed
on March 31, 2017 from being period from 8th November, assets at periodic intervals.

Godrej Consumer Products Limited 177


In our opinion, the period Act. Accordingly, the provisions of the opinion that prima facie, the
of verification is reasonable of sub-clause (a), (b) and (c) of prescribed accounts and records
having regard to the size of the paragraph 3 (iii) of the Order are have been made and maintained.
Company and the nature of not applicable, to the Company. We have not, however, made
its assets. The discrepancies iv) In our opinion and according to a detailed examination of the
reported on such verification the information and explanations records with a view to determine
whether they are accurate or
are not material and have been given to us, the Company has
complete.
properly dealt with in the books complied with the provisions of
vii) a) According to the information
of account. section 185 and 186 of the Act,
and explanation given to us
c) According to the information with respect to investments made,
and the records examined
and explanations given to guarantees given and securities
by us, the Company is
us and on the basis of our provided. generally regular in depositing
examination of the records of v) In our opinion and according to undisputed statutory dues,
the Company, the title deeds of the information and explanations including dues pertaining to
immovable properties are held given to us, the Company has provident fund, employees’
in the name of the Company. not accepted any deposits from state insurance, income-tax,
ii) The Management has conducted the public within the meaning sales-tax, wealth tax, service
physical verification of inventory of section 73 to 76, or any tax, duty of customs, duty
(excluding stocks lying with third other relevant provisions of the of excise, value added tax,
parties) at reasonable intervals. In Companies Act and the rules cess and any other statutory
respect of inventory lying with third framed there under. No order has dues with the appropriate
parties, these have substantially been passed by the Company authorities, wherever
been confirmed by them. In Law Board, or National Company applicable and there are no
such outstanding dues as at
our opinion, the frequency of Law Tribunal, or Reserve Bank of
March 31, 2017, for a period of
verification is reasonable. The India, or any Court, or any other
more than six months from the
discrepancies reported on such Tribunal.
date they became payable.
verification are not material and vi) We have broadly reviewed the
b) According to the information
have been properly dealt with in books of accounts and records
and explanations given to
the books of account. maintained by the Company us and the records of the
iii) The Company has not granted any in respect of manufacture of Company examined by us,
loans, secured or unsecured, to products covered under the dues of income tax, sales tax,
companies, firms, limited liability Rules made by the Central service tax, customs duty and
partnerships or other parties listed Government for maintenance of excise duty not deposited
in the register maintained under cost records, under section 148 on account of dispute are as
section 189 of the Companies (i) of the Companies Act, and are follows:

178 Annual Report 2016-17


Standalone Financials

Amount
Name of Statute Nature of Dues Period Forum where Dispute is pending
(`)
Central Excise Duty on one to one correlation in terms of 3,824,264 2002-03 The Hon'ble Supreme Court of India
Act, 1944 excisable material purchased and cleared 7,302,990 2001-03 The Hon'ble Supreme Court of India
final product with reference to the said material
wherein the benefit under notification No. 32
of 99 availed
CENVAT credit availed on Capital Goods 1,755,920 2007-08 CESTAT, Chennai
86,115 2002-03
Advertisement Service- Credit availed as Input 2,837,962 2008-09 Commissioner of Central Excise
(Appeals)
Input Service Tax Distribution Credit availed 3,219,974 2006-08 Commissioner of Central Excise
(Appeals)
Service Tax not paid on Royalty (Foreign 27,167,930 2004-08 Commissioner of Central Excise
Payment) (Appeals)
Cenvat credit availed on goods received from 64,146,884 2007-08 CESTAT, Chennai
Emox
Valuation of Soap Noodles transferred from 144,754,226 2007-12 CESTAT, Delhi
Malanpur factory to Himachal Pradesh
factories
Cenvat credit on input services availed based 543,416 2007-12 CESTAT, Chennai
on the invoices issued by suppliers to the
branches prior to registration.
Allegations of non- manufacturing of shoe 6,174,082 2011-12 CESTAT, Chennai
polish brush
Valuation of Mosquito Repellant supplied from 55,307,174 2008-12 CESTAT, Kolkata
Guwahati factories to Emox Puducherry
Excise valuation dispute on account of non- 103,600,000 1993-96 The Hon'ble Supreme Court of India
compete fees and trademark license fees paid
by PGG (JV between Godrej Soaps Limited
and Proctor and Gamble) to Godrej
Distribution of Cenvat Credit by Head Office to 243,129,676 2008-12 Commissioner of Central Excise
Other Factories 196,719,214 2006-12 CESTAT, Chennai
Valuation of PHD - Differential demand 78,976,342 2008-14 Commissioner of Central Excise
between Section 4 and 4A valuation
Valuation of Combi pack which are marked as 3,045,410 2007-08 CESTAT, Chennai
Goods for Export
Central Excise Violation of Target Plus Scheme of Customs 8,249,528 2007-08 CESTAT, Chennai
Act, 1944 CENVAT credit availed on the grounds of 14,7762,862 2008-13 CESTAT, Chennai
valuation methodology adopted by one plant
while transferring goods from Lokhra plant
Self credit taken by Sikkim Unit denied by Asst 26,044,314 Commissioner Appeals
Commissioner
CENVAT credit availed on supplementary 4,456,848 2009-10 CESTAT, Chennai
invoices issued by GCPL to Emox upon
payment of differential duty by GCPL.
CENVAT credit availed on account of account 37,845,678 2009-12 CESTAT, Mumbai
of trading activity conducted
Recovery of Service tax on processing activity 43,394,056 2009-14 CESTAT, Kolkata
done by Colortek for Lokhra operations
Service Tax on Business Support Service 37,552,534 2009-14 CESTAT, Kolkata
provided by third party
Cenvat Credit disallowance on outward 225,200 2014-15 Commissioner of Central Excise
transportation (Appeals), Kolkata
Utilisation of Cenvat credit to pay Education 22,934,798 2010-16 Commissioner of Central Excise
Cess and Higher Education Cess demanded (Appeals), Kolkata
back by authorities
Others 951,996 2007-08 CESTAT, New Delhi
282,382 2008-09 CESTAT, Kolkata
442,266 2003-04 Commissioner of Central Excise
(Appeals), Chennai
425,056 2007-08 Commissioner Excise

Godrej Consumer Products Limited 179


Amount
Name of Statute Nature of Dues Period Forum where Dispute is pending
(`)
Central Sales Tax Sales Tax Dues on account of Classification 34,232,967 2005-07 Appellate Authority
Act, 1956 Head 2009-13
& Value Added
82,519,288 1996-97 Assessing Officer
Tax Act of Various
States 2005-09
2011-12
3,278,512 2008-2014 Appellate Deputy Commissioner,
Vizag and Hyderabad
19,918,004 2009-2011 Commissioner Commercial Taxes,
Ernakulum
2124000 1998-99 Deputy Commissioner Appeals
39,157,279 2006-09 High Court, Rajasthan
187,351,651 2005-15 High Court, Andhra Pradesh
2,396,904 2000-05 High Court, Madhya Pradesh
2006-07
784,488 2014-15 Joint Commissioner Appeals,
Chennai
12,462,631 2012-13 Joint Commissioner Appeals,
Uttarakhand
18,993,960 2015-16 Assistant Commissioner
16,448,458 2013-15 Uttar Pradesh Tribunal
555,281 2013-2015 Andhra Pradesh Tribunal
1,642,753 2000-02 Bihar Tribunal
2005-06
2369744 2013-14 Madhya Pradesh Tribunal
3,208,868 2003-05 Supreme Court of India
Central Sales Tax Check post case 1,610,000 2010-11 Appellate Authority
Act, 1956 Entry Tax 19,724,486 2005-08 Appellate Authority
& Value Added
2010-13
Tax Act of Various
States 5,790,286 2005-13 Assessing Officer
1,451,267 1999-00 Madhya Pradesh High Court
2005-06
Non submission of C and F Forms 4,415,747 2002-11 Assessing Officer
2012-13
1,048,019 1997-99 Appellate Authority
2004-09
19,449,405 2009-10 Andhra Pradesh High Court
6,867,888 2003-04 Karnataka High Court
8,212,639 2009-10 Kolkata High Court
Truck Detention cases 314,721 2004-05 U.P. High Court
3,126,227 2004-05 Assessing Officer
2007-10
2013-17
370,953 2013-14 Appellate Authority
Other Sales Tax Dues 34,737,177 2001-12 Appellate Authority, West Bengal;
2013-14 High Court, Andhra Pradesh and
Tamil Nadu; Assessing Officer;
Joint Commissioner (Appeals),
Mumbai; Tribunal, Bihar and U.P.
Income Tax Act, Demand based on the order of regular 1,082,401 AY 2010-11 Income - tax Appellate Tribunal
1961 assessment u/s 143(3) of the Act.
Income-tax in dispute pertaining to erstwhile 92,200 AY 2006-07 High Court
Godrej Household Products Limited. 99,136,617 AY 2006-07 Income tax Appellate Tribunal
to 2010-11

180 Annual Report 2016-17


Standalone Financials

viii) According to the information and based on our examination ANNEXURE B TO THE
and explanations given to us of the records of the Company, INDEPENDENT AUDITOR’S
and based on the documents transactions with the related REPORT
and records produced parties are in compliance with
Referred to in Para 2 (f) ‘Report
before us, there has been no sections 177 and 188 of the
on Other Legal and Regulatory
default in repayment of loans Act where applicable and
details of such transactions Requirements’ in our Independent
or borrowings to financial
have been disclosed in the Auditor’s Report to the members
institutions, banks or debenture
holders. There were no loans financial statements as required of the Company on the financial

or borrowings taken from the by the applicable accounting statements for the year ended March
government during the year. standards. 31, 2017.
ix) According to the information and xiv) According to the information
and explanations give to us Report on the Internal Financial
explanations given to us and
and based on our examination Controls under Clause (i) of Sub-
the records examined by us,
of the records of the Company, section 3 of Section 143 of the
no moneys were raised either
the Company has not made any Companies Act, 2013 (“the Act”)
by way of initial public offer or
preferential allotment or private
further public offer (including We have audited the internal financial
placement of shares or fully or
debt instruments) or term loans controls over financial reporting of
partly convertible debentures
by the Company during the year. Godrej Consumer Products Limited
during the year.
x) Based upon the audit
xv) According to the information (“the Company”) as of March 31,
procedures performed by us,
and explanations given to us 2017 in conjunction with our audit of
to the best of our knowledge
and based on our examination the standalone financial statements of
and belief and according to the
of the records of the Company, the Company for the year ended on
information and explanations the Company has not entered that date.
given to us by the Management, into non-cash transactions with
no material fraud on, or by the directors or persons connected Management’s Responsibility for
Company, has been noticed or with him. Accordingly, Internal Financial Controls
reported during the year. paragraph 3(xv) of the Order is
xi) According to the information The Company’s management is
not applicable.
and explanations give to us xvi) The Company is not required responsible for establishing and
and based on our examination to be registered under section maintaining internal financial controls
of the records of the Company, 45-IA of the Reserve Bank of based on “the internal control over
the Company has paid/provided India Act 1934 and hence the financial reporting criteria established
for managerial remuneration in provisions of paragraph 3(xvi) of by the Company considering the
accordance with the requisite the Order is not applicable. essential components of internal
approvals mandated by the control stated in the Guidance Note
provisions of section 197 read For KALYANIWALLA & MISTRY LLP on Audit of internal financial controls
with Schedule V to the Act. Chartered Accountants over financial reporting issued by the
xii) In our opinion and according to Firm Registration No. 104607W/
Institute of Chartered Accountants of
the information and explanations W100166
India”. These responsibilities include
given to us, the Company is not
a nidhi company. Accordingly, the design, implementation and
Roshni R. Marfatia
paragraph 3(xii) of the Order is Partner maintenance of adequate internal
not applicable. M. No.: 106548 financial controls that were operating
xiii) According to the information effectively for ensuring the orderly
and explanations given to us Mumbai: May 9, 2017 and efficient conduct of its business,

Godrej Consumer Products Limited 181


including adherence to company’s Our audit involves performing internal financial control over financial
policies, the safeguarding of its procedures to obtain audit evidence reporting includes those policies and
about the adequacy of the internal
assets, the prevention and detection procedures that
financial controls system over
of frauds and errors, the accuracy (1) pertain to the maintenance of
financial reporting and their operating
and completeness of the accounting records that, in reasonable detail,
effectiveness.
records, and the timely preparation accurately and fairly reflect the
of reliable financial information, as Our audit of internal financial controls transactions and dispositions of
required under the Companies Act, system over financial reporting the assets of the Company;
2013. included obtaining an understanding (2) provide reasonable assurance
of internal financial controls over that transactions are recorded
Auditors’ Responsibility financial reporting, assessing the risk as necessary to permit
Our responsibility is to express an that a material weakness exists, and preparation of financial
opinion on the Company’s internal testing and evaluating the design and statements in accordance with
financial controls over financial operating effectiveness of internal generally accepted accounting
reporting based on our audit. We control based on the assessed risk. principles, and that receipts
conducted our audit in accordance The procedures selected depend and expenditures of the
with the Guidance Note on Audit on the auditor’s judgment, including Company are being made only in
of Internal Financial Controls over the assessment of the risks of accordance with authorizations of
Financial Reporting (the “Guidance material misstatement of the financial management and directors of the
Note”) and the Standards on statements, whether due to fraud or Company; and
Auditing, issued by ICAI and deemed error. (3) provide reasonable assurance
to be prescribed under section We believe that the audit evidence regarding prevention or timely
143(10) of the Companies Act, we have obtained is sufficient and detection of unauthorized
2013, to the extent applicable to an appropriate to provide a basis for acquisition, use, or disposition of
audit of Internal Financial Controls, our audit opinion on the Company’s the Company’s assets that could
both applicable to an audit of internal financial controls system over have a material effect on the
Internal Financial Controls and, both financial reporting. financial statements.
issued by the Institute of Chartered
Accountants of India. Those Meaning of Internal Financial Inherent Limitations of Internal
Standards and the Guidance Note Controls over Financial Reporting Financial Controls over Financial
require that we comply with ethical A Company’s internal financial Reporting
requirements and plan and perform control over financial reporting is Because of the inherent limitations
the audit to obtain reasonable a process designed to provide of internal financial controls over
assurance about whether adequate reasonable assurance regarding financial reporting, including the
internal financial controls over the reliability of financial reporting possibility of collusion or improper
financial reporting was established and the preparation of financial management override of controls,
and maintained and if such controls statements for external purposes in material misstatements due to error or
operated effectively in all material accordance with generally accepted fraud may occur and not be detected.
respects. accounting principles. A Company’s Also, projections of any evaluation

182 Annual Report 2016-17


Standalone Financials

of the internal financial controls over internal financial controls system over Institute of Chartered Accountants of
financial reporting to future periods financial reporting and such internal India.
are subject to the risk that the internal financial controls over financial
financial control over financial reporting were operating effectively For KALYANIWALLA & MISTRY LLP
reporting may become inadequate as at March 31, 2017, based on Chartered Accountants
because of changes in conditions, the internal control over financial Firm Registration No. 104607W/
or that the degree of compliance reporting criteria established by the W100166
with the policies or procedures may Company considering the essential
deteriorate. components of internal control stated Roshni R. Marfatia
in the Guidance Note on Audit of Partner
Opinion M. No.: 106548
Internal Financial Controls over
In our opinion, the Company has, in Financial Reporting issued by the
Mumbai: May 09, 2017
all material respects, an adequate

Godrej Consumer Products Limited 183


BALANCE SHEET AS AT MARCH 31, 2017 ` Crore
As at As at As at
Note No.
March 31, 2017 March 31, 2016 April 1, 2015
I. ASSETS
1. Non-current assets
(a) Property, Plant and Equipment 3 457.43 459.01 242.93
(b) Capital work-in-progress 43.09 11.05 171.88
(c) Goodwill 4 2.48 2.48 2.48
(d) Other Intangible assets 4 823.59 822.60 814.78
(e) Intangible assets under development 2.32 2.17 6.95
(f) Financial Assets
(i) Investments in subsidiaries and associates 5 2,811.83 2,468.20 2,148.83
(ii) Other Investments 6 216.51 - -
(iii) Loans 7 15.33 14.30 14.80
(iv) Others 8 12.08 0.06 0.06
(g) Other non-current assets 9 186.76 115.27 142.32
(h) Non-Current Tax Assets (Net) 10 19.46 17.00 19.29
Total Non Current Assets 4,590.88 3,912.14 3,564.32
2. Current assets
(a) Inventories 11 561.92 555.88 489.51
(b) Financial Assets
(i) Investments 12 652.86 143.31 151.59
(ii) Trade receivables 13 209.33 276.94 142.94
(iii) Cash and cash equivalents 14 A 86.54 40.57 169.86
(iv) Bank balances other than (iii) above 14 B 10.46 115.71 332.61
(v) Loans 15 0.11 0.11 0.32
(vi) Others 16 9.00 3.47 3.71
(c) Other current assets 17 54.13 77.99 66.64
1,584.35 1,213.98 1,357.18
(d) Non Current Assets held for sale 18 6.49 - -
Total Current Assets 1,590.84 1,213.98 1,357.18
TOTAL ASSETS 6,181.72 5,126.12 4,921.50
II. EQUITY AND LIABILITIES
1. EQUITY
(a) Equity Share capital 19 34.06 34.05 34.04
(b) Other Equity 20 4,363.87 3,749.84 3,248.11
Total Equity 4,397.93 3,783.89 3,282.15
2. LIABILITIES
Non-current liabilities
(a) Provisions 21 3.77 2.72 3.99
(b) Deferred tax liabilities (Net) 22 224.24 204.67 182.45
(c) Other non-current liabilities 23 27.82 21.09 4.76
Total Non Current Liabilities 255.83 228.48 191.20
Current liabilities
(a) Financial Liabilities
(i) Borrowings 24 148.97 2.75 0.34
(ii) Trade payables 25 1,120.36 851.32 992.12
(iii) Other financial liabilities 26 34.18 21.88 291.67
(b) Other current liabilities 27 155.55 188.17 126.52
(c) Provisions 28 68.90 49.63 37.50
Total Current Liabilities 1,527.96 1,113.75 1,448.15
TOTAL EQUITY AND LIABILITIES 6,181.72 5,126.12 4,921.50
The accompanying notes are an integral part of the Standalone Financial Statements.
As per our Report attached Signatures to the Financial Statements
For Kalyaniwalla & Mistry LLP For and on behalf of the Board
Chartered Accountants
Firm Regn No. 104607W/W100166 Adi Godrej
Chairman

Roshni R. Marfatia V Srinivasan Vivek Gambhir


Partner Chief Financial Officer Managing Director & CEO
M. No. 106548 & Company Secretary

Mumbai: May 9, 2017

184 Annual Report 2016-17


Standalone Financials

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2017 ` Crore
Year ended Year ended
Note No.
March 31, 2017 March 31, 2016
Revenue
I Revenue from Operations 29 5,088.99 4883.40
II Other Income 30 63.60 61.37
III Total Income (I + II) 5,152.59 4944.77
IV Expenses
Cost of Materials Consumed 31 1,834.77 1847.87
Purchases of Stock-in-Trade 216.26 194.90
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in- 32 (3.79) (48.24)
Progress
Excise Duty 340.89 329.18
Employee Benefits Expense 33 299.01 331.37
Finance Costs 34 36.06 54.67
Depreciation and Amortization Expense 35 56.68 44.91
Other Expenses 36 1,265.23 1241.89
Total Expenses 4,045.11 3996.55
V Profit Before Exceptional Items and Tax (III-IV) 1,107.48 948.22
VI Exceptional Items - -
VII Profit Before Tax (V+VI) 1,107.48 948.22
VIII Tax Expense
(1) Current Tax 235.40 202.48
(2) Deferred Tax 24.05 23.07
Total Tax Expense 259.45 225.55
IX Profit for the Year (VII-VIII) 848.03 722.67
X Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans (11.78) (2.46)
(ii) Income tax relating to item that will not be reclassified to profit or loss 6.59 0.85
B (i) Items that will be reclassified to profit or loss
The effective portion of gains and losses on hedging instruments in a (1.16) -
cash flow hedge
(ii) Income tax relating to item that will be reclassified to profit or loss 0.41 -
Total Comprehensive Income for the year (IX+X) 842.09 721.06
XI Earnings per Equity Share (Face Value ` 1) 37
(1) Basic (`) 24.90 21.22
(2) Diluted (`) 24.89 21.22
The accompanying notes are an integral part of the Standalone Financial Statements.
As per our Report attached Signatures to the Financial Statements
For Kalyaniwalla & Mistry LLP For and on behalf of the Board
Chartered Accountants
Firm Regn No. 104607W/W100166 Adi Godrej
Chairman

Roshni R. Marfatia V Srinivasan Vivek Gambhir


Partner Chief Financial Officer Managing Director & CEO
M. No. 106548 & Company Secretary

Mumbai: May 9, 2017

Godrej Consumer Products Limited 185


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2017 ` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Exceptional Items and Tax 1,107.48 948.22
Adjustment for:
Depreciation and amortisation 56.68 44.91
Unrealised Foreign Exchange (Gain) / Loss 0.57 (0.03)
Bad Debts Written off 0.29 3.92
Provision / (Write-back) for Doubtful Debts / Advances 2.43 (2.35)
Provision for Non Moving Inventory (3.11) 8.25
Write in of Old Balances (0.89) (1.17)
Expenses on Employee Stock Grant Scheme (ESGS) 7.59 6.06
Interest Expense & Discounting Charges 36.06 54.67
(Profit) / Loss on Fixed Assets Sold / Discarded (Net) (0.13) 11.39
(Profit) / Loss on Sale of Investments (Net) (6.23) (12.99)
Reversal of provision for dimunition in the value of investments (2.84) -
Fair value Gain/ (Loss) on financial assets measured at FVTPL (11.60) (0.16)
Recovery of loan from GCPL ESOP Trust which was earlier written off (0.61) (0.60)
Corporate Guarantee Commission (17.20) (18.60)
Interest Income (20.90) (28.00)
40.11 65.30
Operating Cash Flows Before Working Capital Changes 1,147.59 1,013.52
Adjustments for:
Inventories (2.93) (74.62)
Trade Receivables 65.25 (134.18)
Loans (1.03) 0.71
Other Financial Assets (17.55) 0.24
Other Non-Financial Assets (39.58) (8.36)
Financial Liabilities 276.61 (146.25)
Non - Financial Liabilities and Provisions (15.52) 61.23
265.25 (301.23)
Cash Generated from Operations 1,412.84 712.29
Adjustment for:
Direct Taxes Paid (235.35) (200.19)
Net Cash Flow from Operating Activities 1,177.49 512.10
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant & Equipment and Intangibles (Net) (104.56) (93.40)
Sale of Property, Plant & Equipment and Intangibles 1.51 1.48
Investments in Mutual Funds (Net) (343.03) 102.88
Investments in Deposits with NBFCs (Net) (149.00) (80.00)
Investments in NCD with NBFCs (Net) (206.44) -
Investments in Fixed Deposits having maturities greater than 3 months (Net) 98.69 216.38
Investments in Subsidiaries (360.81) (274.45)
Sale of Subsidiary 32.29 -
Recovery of Loan by GCPL ESOP Trust which was earlier written off 0.61 0.60
Interest Received 20.54 27.07
Net Cash Flow (used in) Investing Activities (1,010.20) (99.44)

186 Annual Report 2016-17


Standalone Financials

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2017 ` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Allotment of Equity Shares under ESGS 0.01 0.01
Issue of Debentures (Net of Expenses) - (0.25)
Redemption of Debentures (including Premium on Redemption) - (277.64)
(Repayment)/ Proceeds from Packing Credit (2.75) 2.75
Proceeds from Commercial Paper 148.97 -
Interest & Discounting Charges Paid (31.76) (41.06)
Dividend Paid (195.78) (187.27)
Dividend Tax Paid (39.87) (38.12)
Net Cash Flow (used in) Financing Activities (121.18) (541.58)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 46.11 (128.92)
CASH AND CASH EQUIVALENTS:
As At The Beginning of the year (Refer Note 14 A) 40.57 169.86
Less : Cash credit - (0.34)
Unrealised Foreign Exchange Restatement in Cash and Cash Equivalents (0.14) (0.03)
As At The End of the year (Refer Note 14 A) 86.54 40.57
86.54 40.57

Note:
1) The above Statement of Cash Flows includes amount of ` 16.52 crore (previous year ` 14.57 crore) (Refer Note 46) on account of
Corporate Social Responsibility expenditure which has been fully paid.
2) The above Statement of Cash Fows has been prepared under the ‘Indirect Method’ as set out in IND AS 7, ‘Statement of Cash Flows.

As per our Report attached Signatures to the Financial Statements


For Kalyaniwalla & Mistry LLP For and on behalf of the Board
Chartered Accountants
Firm Regn No. 104607W/W100166 Adi Godrej
Chairman

Roshni R. Marfatia V Srinivasan Vivek Gambhir


Partner Chief Financial Officer Managing Director & CEO
M. No. 106548 & Company Secretary

Mumbai: May 9, 2017

Godrej Consumer Products Limited 187


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2017
(a) Equity share capital ` Crore
Note No.
As at April 1, 2015 34.04
Changes in equity share capital during the year 19 0.01
As at March 31, 2016 34.05
Changes in equity share capital during the year 19 0.01
As at March 31, 2017 34.06

(b) Other equity (Refer Note 20) ` Crore


Other
Reserves & Surplus comprehensive
income
Total
Effective
Securities General Retained
Particulars Others portion of Cash
premium reserve Earnings
Flow Hedges
reserve
Balance at April 1, 2015 1,439.88 154.05 34.61 1,619.57 - 3,248.11
Profit for the year - - - 722.67 - 722.67
Remeasurements of defined benefit plans - - - (1.61) - (1.61)
Total comprehensive income for the year - - - 721.06 - 721.06
Exercise of Share options - - (6.39) - - (6.39)
Deferred employee compensation expense - - 6.06 - - 6.06
Cash dividends - - - (187.27) - (187.27)
Dividend Distribution Tax (DDT) - - - (38.12) - (38.12)
Transfer from / (to) Debenture Redemption Reserve - - (24.39) 24.39 - -
Premium Received on Allotment of Shares 6.39 - - - - 6.39
Balance at March 31, 2016 1,446.27 154.05 9.89 2,139.63 - 3,749.84
Profit for the year - - - 848.03 - 848.03
Remeasurements of defined benefit plans - - - (5.19) - (5.19)
Other comprehensive income for the year - - - - (0.75) (0.75)
Total comprehensive income for the year - - - 842.84 (0.75) 842.09
Cash dividends - - - (195.78) - (195.79)
Dividend Distribution Tax (DDT) - - - (39.87) - (39.87)
Exercise of Share options - - (6.04) - - (6.04)
Deferred employee compensation expense - - 7.59 - - 7.60
Premium Received on Allotment of Shares 6.04 - - - - 6.04
Balance at March 31, 2017 1,452.31 154.05 11.44 2,746.82 (0.75) 4,363.87
The accompanying notes are an integral part of the Standalone Financial Statements.
As per our Report attached Signatures to the Financial Statements
For Kalyaniwalla & Mistry LLP For and on behalf of the Board
Chartered Accountants
Firm Regn No. 104607W/W100166 Adi Godrej
Chairman

Roshni R. Marfatia V Srinivasan Vivek Gambhir


Partner Chief Financial Officer Managing Director & CEO
M. No. 106548 & Company Secretary

Mumbai: May 9, 2017

188 Annual Report 2016-17


Standalone Financials

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017
1. CORPORATE INFORMATION amended by the Companies been prepared on a historical cost
Godrej Consumer Products (Indian Accounting Standards) basis, except for the following
Limited (the Company) was Rules, 2016 and other relevant assets and liabilities which have
incorporated on November provisions of the Act. been measured at fair value:
29, 2000, to take over as a The financial statements up to • Certain financial assets and
going concern the consumer year ended March 31, 2016 were liabilities (including derivative
products business of Godrej prepared in accordance with the instruments) measured at
Soaps Limited (subsequently accounting standards notified fair value (refer accounting
renamed as Godrej Industries under the Companies (Accounting policy regarding financial
Limited), pursuant to a Scheme Standard) Rules 2006 and other instruments),
of Arrangement as approved relevant provisions of the Act, • Defined benefit plans – plan
by the High Court, Mumbai. considered as the “Previous assets and share-based
The Company is a fast moving GAAP”. payments measured at fair
consumer goods company, These financial statements are the value
manufacturing and marketing Company’s first Ind AS financial • Assets held for sale –
Household and Personal Care statements and are covered by measured at lower of carrying
products. The Company is a Ind AS 101, First-time adoption value or fair value less cost to
public company limited by shares, of Indian Accounting Standards. sell
incorporated and domiciled in An explanation of how the
India and is listed on the Bombay transition to Ind AS has affected 2.2 Key estimates and assumptions
Stock Exchange (BSE) and the the Company’s equity, financial In preparing these financial
National Stock Exchange (NSE). position, financial performance statements, management has
The Company’s registered office and its cash flows is provided in made judgements, estimates
is at 4th Floor, Godrej One, Note 51. and assumptions that affect the
Pirojshanagar, Eastern Express Current versus non-current application of accounting policies
Highway, Vikhroli (east), Mumbai – classification and the reported amounts of
400 079. All assets and liabilities have assets, liabilities, income and
been classified as current or expenses. Actual results may
2. BASIS OF PREPARATION, non-current as per the Company’s differ from these estimates.
MEASUREMENT AND normal operating cycle and The areas involving critical
SIGNIFICANT ACCOUNTING other criteria set out in the estimates or judgements are:
POLICIES Schedule III to the Companies i. Determination of the estimated
Act, 2013. Based on the nature useful lives of tangible assets
2.1 Basis of Preparation and and the assessment as to
of products and the time taken
measurement which components of the cost
between acquisition of assets for
processing and their realization may be capitalized; (Note 2.5
a) Basis of Preparation
in cash and cash equivalent, (a))
The financial statements have
the Company has ascertained ii. Determination of the estimated
been prepared in accordance
its operating cycle as twelve useful lives of intangible assets
with Indian Accounting Standards
months for the purpose of the and determining intangible
(“Ind AS”) as notified by Ministry
classification of assets and assets having an indefinite
of Corporate Affairs pursuant to
liabilities into current and non- useful life; (Note 2.5 (b))
Section 133 of the Companies
current. iii. Recognition and measurement
Act, 2013 (‘Act’) read with the
of defined benefit obligations,
Companies (Indian Accounting
b) Basis of Measurement key actuarial assumptions;
Standards) Rules, 2015 as
These financial statements have (Note 44)

Godrej Consumer Products Limited 189


iv. Recognition and should be classified. Amendment to Ind AS 7:
measurement of provisions Fair values are categorised into The amendment to Ind AS 7
and contingencies, key different levels in a fair value requires the entities to provide
assumptions about the hierarchy based on the inputs disclosures that enable users
likelihood and magnitude of an used in the valuation techniques of financial statements to
outflow of resources; (Note 2.5 as follows. evaluate changes in liabilities
(j)) Level 1: quoted prices arising from financing activities,
v. Fair valuation of employee (unadjusted) in active markets for including both changes arising
share options, Key identical assets or liabilities. from cash flows and non-cash
assumptions made with Level 2: inputs other than quoted changes, suggesting inclusion
respect to expected volatility; prices included in Level 1 that are of a reconciliation between the
(Note 2.5 (l)(ii)) observable for the asset or liability, opening and closing balances
vi. Rebates and sales incentives either directly (i.e. as prices) in the balance sheet for liabilities
accruals or indirectly (i.e. derived from arising from financing activities, to
vii. Fair value of financial prices). meet the disclosure requirement.
instruments (Note 2.3) Level 3: inputs for the asset Amendment to Ind AS 102:
or liability that are not based The amendment to Ind AS 102
2.3 Measurement of fair values on observable market data provides specific guidance to
The Company’s accounting (unobservable inputs). measurement of cash-settled
policies and disclosures require If the inputs used to measure the awards, modification of cash-
financial instruments to be fair value of an asset or a liability settled awards and awards that
measured at fair values. fall into different levels of the fair include a net settlement feature
The Company has an established value hierarchy, then the fair value in respect of withholding taxes.
control framework with respect to measurement is categorised in its It clarifies that the fair value of
the measurement of fair values. entirety in the same level of the cash-settled awards is determined
The Company uses valuation fair value hierarchy as the lowest on a basis consistent with that
techniques that are appropriate in level input that is significant to the used for equity settled awards.
the circumstances and for which entire measurement. The amendment clarifies that if the
sufficient data are available to The Company recognises terms and conditions of a cash-
measure fair value, maximizing transfers between levels of the fair settled share-based payment
the use of relevant observable value hierarchy at the end of the transaction are modified with the
inputs and minimizing the use of reporting period during which the result that it becomes an equity-
unobservable inputs. change has occurred. settled share-based payment
The management regularly transaction, the transaction is
reviews significant unobservable 2.4 Standards issued but not yet accounted for as such from
inputs and valuation adjustments. effective the date of the modification.
If third party information, such as In March 2017, the Ministry of Further, the amendment requires
broker quotes or pricing services, Corporate Affairs issued the the award that include a net
is used to measure fair values, Companies (Indian Accounting settlement feature in respect of
then the management assesses Standards) (Amendments) Rules, withholding taxes to be treated as
the evidence obtained from 2017, notifying amendments to Ind equity-settled in its entirety. The
the third parties to support the AS 7, ‘Statement of Cash Flows’ cash payment to the tax authority
conclusion that such valuations and Ind AS 102, ‘Share-based is treated as if it was part of an
meet the requirements of Ind AS, payment.’ The amendments are equity settlement.
including the level in the fair value applicable to the Company from The Company is currently
hierarchy in which such valuations April 1, 2017. evaluating the effect of the above

190 Annual Report 2016-17


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amendments. measured. The carrying amount of business combination is their fair


any component accounted for as value at the date of acquisition.
2.5 Significant Accounting Policies a separate asset is derecognized Following initial recognition,
when replaced. All other repair intangible assets are carried
a) Property, Plant and Equipment
and maintenance are charged to at cost less any accumulated
Recognition and measurement
profit and loss during the reporting impairment losses. Internally
Items of property, plant and
period in which they are incurred. generated intangibles, excluding
equipment, other than Freehold
Depreciation eligible development costs are
Land, are measured at cost less
Depreciation is provided, under not capitalized and the related
accumulated depreciation and
the Straight Line Method, pro rata expenditure is reflected in profit
any accumulated impairment
to the period of use, based on and loss in the period in which the
losses. Freehold land is carried at
useful lives specified in Schedule expenditure is incurred.
cost and is not depreciated.
II to the Companies Act, 2013 The useful lives of intangible
The cost of an item of property,
except the following items where assets are assessed as either
plant and equipment comprises
useful lives estimated by the finite or indefinite.
its purchase price, including
management based on internal Goodwill
import duties and non-refundable
technical assessment, past trends Goodwill on acquisition of
purchase taxes, after deducting
and expected operational lives subsidiaries is included in
trade discounts and rebates,
differ from those provided in intangible assets. Goodwill is
any directly attributable costs of
Schedule II of the Companies Act not amortised but it is tested for
bringing the asset to its working
2013: impairment annually or more
condition for its intended use and
• Leasehold land is amortised frequently if events or changes in
estimated costs of dismantling
equally over the lease period. circumstances indicate that the
and removing the item and
• Leasehold Improvements are asset may be impaired, and is
restoring the item and restoring
depreciated over the shorter carried at cost less accumulated
the site on which it is located.
of the unexpired period of the impairment losses. Gains and
If significant parts of an item of
lease and the estimated useful losses on the disposal of an entity
property, plant and equipment
life of the assets. include the carrying amount of
have different useful lives,
• Office Equipments are goodwill relating to the entity sold.
then they are accounted for
depreciated over 5 to 10 years. Other intangible assets
as separate items (major
• Tools are depreciated over a Intangible assets with finite lives
components) of property, plant
period of 9 years, and dies and are amortised over the useful
and equipment.
moulds over 3 years. economic life and assessed for
Any gain or loss on derecognition
• Vehicles are depreciated over impairment whenever there is an
of an item of property, plant
a period ranging from 5 years indication that the intangible asset
and equipment is included in
to 8 years depending on the may be impaired. The amortization
profit or loss when the item is
use of vehicles. method and period are reviewed
derecognised.
Depreciation methods, useful lives at least at the end of each
Subsequent expenditure
and residual values are reviewed reporting period. Changes in the
Subsequent costs are included
at each reporting date and expected useful life or expected
in the assets carrying amount
adjusted if appropriate. pattern of consumption of future
or recognized as a separate
economic benefits embodied
asset, as appropriate only if it is b) Intangible Assets in the assets are considered to
probable that the future economic Intangible assets acquired modify amortization period or
benefits associated with the item separately are measured on initial method, as appropriate, and are
will flow to the Company and that recognition at cost. The cost of treated as changes in accounting
the cost of the item can be reliably intangible assets acquired in a estimates.

Godrej Consumer Products Limited 191


Intangible assets with indefinite borrowing costs are charged to marketed and (iv) sale has been
useful lives are not amortised, revenue. agreed or is expected to be
but are tested for impairment concluded within 12 months of the
annually. The assessment of d) Impairment of non-financial Balance Sheet date.
indefinite life is reviewed annually assets Subsequently, such non-current
to determine whether the indefinite An impairment loss is recognised assets and disposal groups
life continues to be supportable. If whenever the carrying value of an classified as held for sale are
not the change in useful life from asset or a cash-generating unit measured at lower of its carrying
indefinite to finite is made on a exceeds its recoverable amount. value and fair value less costs
prospective basis. Recoverable amount of an asset to sell. Non-current assets held
Gains or losses arising from or a cash-generating unit is the for sale are not depreciated or
derecognition of an intangible higher of its fair value less costs amortised.
asset are measured as the of disposal and its value in use.
difference between the net An impairment loss, if any, is f) Financial Instruments
disposal proceeds and the recognised in the Statement of A financial instrument is any
carrying amount of the asset and Profit and Loss in the period in contract that gives rise to a
are recognized in the statement which the impairment takes place. financial asset of one entity
of profit or loss when the asset is The impairment loss is allocated and a financial liability or equity
derecognized. first to reduce the carrying amount instrument of another entity.
Amortisation of any goodwill (if any) allocated Financial instruments also include
Amortisation is calculated to write to the cash generating unit and derivative contracts such as
off the cost of intangible assets then to the other assets of the unit, foreign currency foreign exchange
less their estimated residual pro rata based on the carrying forward contracts, futures and
values using the straight-line amount of each asset in the unit. currency options.
method over their estimated useful Goodwill and intangible assets
that have an indefinite useful life i) Financial assets
lives, and is recognised in profit or
are not subject to amortization and Initial recognition and
loss.
are tested annually for impairment, measurement
The estimated useful lives for
or more frequently if events All financial assets are recognised
current and comparative periods
or changes in circumstances initially at fair value plus, in the
are as follows:
indicate that they might be case of financial assets not
Software licences 6 years
impaired. Other assets are tested recorded at fair value through
Trademarks 10 years
for impairment whenever events profit or loss, transaction
Technical knowhow 10 years
and changes in circumstances costs that are attributable to
Goodknight and Hit (Brands)
indicate the carrying amount may the acquisition of the financial
are assessed as intangibles
not be recoverable. asset. Purchases or sales of
having indefinite useful life and
financial assets that require
are not amortised in the financial
e) Assets held for sale delivery of assets within a time
statements.
Non-current assets or disposal frame established by regulation
Residual value, is estimated to be
groups comprising of assets and or convention in the market
immaterial by management and
liabilities are classified as ‘held place (regular way trades) are
hence has been considered at ` 1.
for sale’ when all of the following recognised on the trade date,
c) Borrowing Costs criteria’s are met: (i) decision i.e., the date that the Company
Interest and other borrowing costs has been made to sell; (ii) the commits to purchase or sell the
attributable to qualifying assets assets are available for immediate asset.
are capitalized. Other interest and sale in its present condition; (iii) Subsequent measurement
the assets are being actively For the purpose of subsequent

192 Annual Report 2016-17


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measurement, financial assets are EIR amortisation is included in recognition and is irrevocable.
classified in four categories: finance income in the profit or If the Company decides to
• Debt instruments at amortised loss. The losses arising from classify an equity instrument as
cost, impairment are recognised in at FVTOCI, then all fair value
• Debt instruments at fair value the profit or loss. This category changes on the instrument,
through other comprehensive generally applies to trade and excluding dividends, are
income (FVTOCI) other receivables. For more recognized in the Other
• Debt instruments, derivatives information on receivables, Comprehensive Income
and equity instruments at fair refer to Note 49 (b). (OCI). There is no recycling
value through profit (FVTPL) Debt instrument at fair value of the amounts from OCI to
• Equity instruments measured through profit and loss (FVTPL) profit and loss, even on sale
at fair value through other Any debt instrument, which of investment. However, the
comprehensive income does not meet the criteria for Company may transfer the
(FVTOCI) categorization as at amortized cumulative gain or loss within
on the basis of its business cost or as FVTOCI, is classified equity.
model for managing the as at FVTPL. Equity instruments included
financial assets and the In addition, the Company within the FVTPL category are
contractual cash flow may, at initial recognition, measured at fair value with
characteristics of the financial irrevocably designate a debt all changes recognized in the
asset. instrument, which otherwise profit and loss.
Debt instruments at amortised meets amortized cost or Investments in Subsidiaries
cost FVTOCI criteria, as at FVTPL. and Associates:
• A ‘debt instrument’ is However, such election is Investments in subsidiaries
measured at the amortised allowed only if doing so and associates are carried
cost if both the following reduces or eliminates a at cost less accumulated
conditions are met: The asset measurement or recognition impairment losses, if any.
is held within a business inconsistency (referred to as Where an indication of
model whose objective is ‘accounting mismatch’). impairment exists, the carrying
to hold assets for collecting Debt instruments included amount of the investment is
contractual cash flows, and within the FVTPL category are assessed and written down
Contractual terms of the asset measured at fair value with immediately to its recoverable
give rise on specified dates all changes recognized in the amount. On disposal of
to cash flows that are solely Statement of Profit and Loss. investments in subsidiaries
payments of principal and Equity investments and associates, the difference
interest (SPPI) on the principal All equity investments within between net disposal
amount outstanding. the scope of Ind-AS 109 are proceeds and the carrying
After initial measurement, measured at fair value. Equity amounts are recognized in the
such financial assets are instruments which are held Statement of Profit and Loss.
subsequently measured at for trading are classified as Derecognition
amortised cost using the at FVTPL. For all other equity A financial asset (or, where
Effective Interest Rate (EIR) instruments, the Company applicable, a part of a financial
method. Amortised cost is decides to classify the same asset or a part of a group of
calculated by taking into either as at FVTOCI or FVTPL. similar financial assets) is
account any discount or The Company makes such primarily derecognised (i.e.
premium on acquisition and election on an instrument- removed from the Company’s
fees or costs that are an by-instrument basis. The balance sheet) when:
integral part of the EIR. The classification is made on initial • The contractual rights to

Godrej Consumer Products Limited 193


receive cash flows from the original carrying amount of recognised initially at fair value
financial asset have expired, or the asset and the maximum and, in the case of loans and
The Company has transferred amount of consideration borrowings and payables, net
its rights to receive cash that the Company could be of directly attributable and
flows from the asset or has required to repay. incremental transaction cost.
assumed an obligation to pay Impairment of financial assets Amortised cost is calculated by
the received cash flows in The Company assess on a taking into account any discount
full without material delay to forward looking basis the or premium on acquisition
a third party under a ‘pass- Expected Credit Losses and fees or costs that are an
through’ arrangement; and (ECL) associated with its integral part of the EIR. The EIR
either (a) the Company has financial assets that are amortisation is included as finance
transferred substantially all debt instruments and are costs in the statement of profit and
the risks and rewards of the carried at amortised cost. loss.
asset, or (b) the Company The impairment methodology The Company’s financial
has neither transferred nor applied depends on whether liabilities include trade and other
retained substantially all the there has been a significant payables, loans and borrowings
risks and rewards of the asset, increase in credit risk. including bank overdrafts,
but has transferred control of For trade receivables, the financial guarantee contracts and
the asset. When the Company Company applies a simplified derivative financial instruments.
has transferred its rights to approach. It recognises Derecognition
receive cash flows from an impairment loss allowance A financial liability is derecognised
asset or has entered into a based on lifetime ECLs at when the obligation under the
pass-through arrangement, it each reporting date, right liability is discharged or cancelled
evaluates if and to what extent from its initial recognition. or expires. When an existing
it has retained the risks and Trade receivables are tested financial liability is replaced by
rewards of ownership. When for impairment on a specific another from the same lender on
it has neither transferred nor basis after considering the substantially different terms, or
retained substantially all of sanctioned credit limits, the terms of an existing liability
the risks and rewards of the security deposit collected etc. are substantially modified, such
asset, nor transferred control and expectations about future an exchange or modification is
of the asset, the Company cash flows. treated as the derecognition of the
continues to recognise the original liability and the recognition
transferred asset to the ii) Financial liabilities of a new liability. The difference in
extent of the Company’s Initial recognition and the respective carrying amounts
continuing involvement. In measurement is recognised in the statement of
that case, the Company also Financial liabilities are classified, profit or loss.
recognises an associated at initial recognition, as financial Loans and borrowing
liability. The transferred asset liabilities at fair value through After initial recognition, interest-
and the associated liability profit or loss, loans and bearing loans and borrowings
are measured on a basis borrowings, payables, or as are subsequently measured at
that reflects the rights and derivatives designated as hedging amortised cost using the EIR
obligations that the Company instruments in an effective hedge, method. Gains and losses are
has retained. as appropriate. Such liabilities, recognised in Statement of Profit
Continuing involvement that including derivatives that are and Loss when the liabilities are
takes the form of a guarantee liabilities, shall be subsequently derecognized as well as through
over the transferred asset is measured at fair value. the EIR amortisation process.
measured at the lower of the All financial liabilities are Amortised cost is calculated by

194 Annual Report 2016-17


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taking into account any discount a net basis, or to to realise the to be highly effective in achieving
or premium on acquisition assets and settle the liabilities offsetting changes in fair value or
and fees or costs that are an simultaneously. cash flows and are assessed on
integral part of the EIR. The EIR an ongoing basis to determine
amortisation is included as finance g) Derivative financial instruments that they actually have been highly
costs in the Statement of Profit and hedge accounting effective throughout the financial
and Loss. The Company uses derivative reporting periods for which they
Financial guarantee contracts financial instruments, such as are designated.
Financial guarantee contracts forward currency contracts to Cash flow hedges
issued by the Company are hedge its foreign currency risks When a derivative is designated
those contracts that require and interest rate risks respectively. as a cash flow hedging
specified payments to be made Such derivative financial instrument, the effective portion
to reimburse the holder for a loss instruments are initially recognised of changes in the fair value of the
it incurs because the specified at fair value on the date on which derivative is recognised in OCI
debtor fails to make a payment a derivative contract is entered and accumulated in the other
when due in accordance with into and are subsequently equity under ‘effective portion of
the terms of a debt instrument. re-measured at fair value. Any cash flow hedges’. The effective
Financial guarantee contracts changes therein are generally portion of changes in the fair value
are recognised initially as a recognised in the profit or loss of the derivative that is recognised
liability at fair value, adjusted for account. Derivatives are carried in OCI is limited to the cumulative
transaction costs that are directly as financial assets when the fair change in fair value of the hedged
attributable to the issuance of value is positive and as financial item, determined on a present
the guarantee. Subsequently, the liabilities when the fair value is value basis, from inception of the
liability is measured at the higher negative. hedge. Any ineffective portion
of the amount of loss allowance At the inception of a hedge of changes in the fair value of
determined as per impairment relationship, the Company formally the derivative is recognised
requirements of Ind-AS 109 and designates and documents the immediately in profit or loss.
the amount recognised less hedge relationship to which If a hedge no longer meets the
cumulative amortisation. the Company wishes to apply criteria for hedge accounting
Where guarantees in relation hedge accounting and the risk or the hedging instrument is
to loans or other payables of management objective and sold, expires, is terminated or is
subsidiaries are provided for no strategy for undertaking the exercised, then hedge accounting
compensation, the fair values are hedge. The documentation is discontinued prospectively.
accounted for as contributions includes the Company’s risk When hedge accounting for a
and recognised as fees receivable management objective and cash flow hedge is discontinued,
under “other financial assets” strategy for undertaking the the amount that has been
or as a part of the cost of the hedge, the hedging economic accumulated in other equity
investment, depending on the relationship the hedged item or remains there until is reclassified
contractual terms. transaction the nature of the risk to profit and loss account in the
Offsetting of financial instruments being hedged, hedge ration and same period or periods as the
Financial assets and financial how the entity will assess the hedged expected future cash
liabilities are offset and the net effectiveness of changes in the flows affect profit or loss.
amount is reported in the balance hedging instrument’s fair value in
sheet if there is a currently offsetting the exposure to changes h) Inventories
enforceable legal right to offset in hedged item’s fair value or cash Inventories are valued at lower of
the recognised amounts and flows attributable to the hedged cost and net realizable value. Net
there is an intention to settle on risk. Such hedges are expected realizable value is the estimated

Godrej Consumer Products Limited 195


selling price in the ordinary course investments, with original asset that arises from past events
of business, less estimated costs maturities less than three months and whose existence will be
of completion and the estimated which are readily convertible into confirmed only by the occurrence
costs necessary to make the cash and which are subject to or non-occurrence of one or
sale. Costs are computed on the insignificant risk of changes in more uncertain future events not
weighted average basis and are value. wholly within the control of the
net of CENVAT credits. For the purpose of the statement entity. Contingent Assets are not
Raw materials, packing materials of cash flows, cash and cash recognised till the realization of
and stores: Costs includes cost of equivalents cash and short term the income is virtually certain.
purchase and other costs incurred deposits as defined above is net However the same are disclosed
in bringing each product to its of outstanding bank overdrafts as in the financial statements where
present location and condition. they are considered an integral an inflow of economic benefit is
Finish goods and work in part of the Company’s cash probable.
progress: In the case of management.
manufactured inventories and k) Revenue Recognition
work in progress, cost includes j) Provisions, Contingent Revenue is recognized to the
all costs of purchases, an Liabilities and Contingent extent that it is probable that the
appropriate share of production Assets economic benefits will flow to the
overheads based on normal A provision is recognised when Company and the revenue can
operating capacity and other the enterprise has a present be reliably measured. Revenue
costs incurred in bringing each obligation (legal or constructive) is measured at the fair value of
product to its present location and as a result of a past event and the consideration received or
condition it is probable that an outflow of receivable, taking into account
Finished goods valuation also resources embodying economic contractually defined terms of
includes excise duty. Provision is benefits will be required to settle payment and excluding taxes or
made for cost of obsolescence the obligation, in respect of which duties collected on behalf of the
and other anticipated losses, a reliable estimate can be made. government.
whenever considered necessary. These are reviewed at each Sale of goods
If payment for inventory is balance sheet date and adjusted Revenue from sale of goods is
deferred beyond normal to reflect the current management recognised when significant risks
credit terms, then the cost is estimates. and rewards of ownership in the
determined by discounting the If the effect of the time value of goods are transferred to the buyer.
future cash flows at an interest money is material, provisions The Company recognizes
rate determined with reference are determined by discounting revenues on the sale of products,
to market rates. The difference the expected future cash flows net of returns, discounts, sales
between the total cost and the specific to the liability. The incentives/rebate, amounts
deemed cost is recognised as unwinding of the discount is collected on behalf of third parties
interest expense over the period recognised as finance cost. (such as sales tax) and payments
of financing under the effective Contingent Liabilities are or other consideration given to the
interest method. disclosed in respect of possible customer that has impacted the
obligations that arise from past pricing of the transaction.
i) Cash and Cash Equivalents events but their existence is Accumulated experience is used
Cash and cash equivalents in the confirmed by the occurrence or to estimate and provide for the
balance sheet includes cash at non-occurrence of one or more discounts and returns. No element
bank and on hand, deposits held uncertain future events not wholly of financing is deemed present as
at call with financial institutions, within the control of the Company. the sales are made with normal
other short term highly liquid A contingent asset is a possible credit days consistent with market

196 Annual Report 2016-17


Standalone Financials

practice. l) Employee Benefits that meet the related service


Customer Loyalty Programme i) Short-term Employee benefits and non-market performance
Sales consideration is allocated Liabilities for wages and conditions at the vesting date.
between the loyalty programme salaries including non- For share-based payment
and the other components of the monetary benefits that are awards with non-vesting
transaction. The amount allocated expected to be settled wholly conditions, the grant-date
to the loyalty programme is within twelve months after the fair value of the share-based
deferred, and is recognised as end of the period in which the payment is measured to reflect
revenue when the Company has employees render the related such conditions and there
fulfilled its obligations to supply service are classified as is no true-up for differences
the products under the terms of short term employee benefits between expected and actual
the programme or when it is no and are recognized as an outcomes.
longer probable that the points expense in the Statement of The dilutive effect of
under the programme will be Profit and Loss as the related outstanding options is
redeemed. service is provided. A liability reflected as additional share
Royalty & Technical Fees is recognised for the amount dilution in the computation of
Royalty is recognized on accrual expected to be paid if the diluted earnings per share.
basis in accordance with the Company has a present legal iii) Post-Employment Benefits
substance of the relevant or constructive obligation to Defined Contribution Plans
agreement. pay this amount as a result of Payments made to a defined
Interest income past service provided by the contribution plan such as
For all debt instruments measured employee and the obligation Provident Fund maintained with
at amortised cost, interest income can be estimated reliably. Regional Provident Fund Office
is recorded using the effective ii) Share-based payments and Superannuation Fund are
interest rate (EIR). EIR is the The cost of equity settled charged as an expense in the
rate which exactly discounts the transactions is determined by Statement of Profit and Loss as
estimated future cash receipts the fair value at the grant date, they fall due.
over the expected life of the the fair value of the employee Defined Benefit Plans
financial instrument to the gross share options is based on the Gratuity Fund
carrying amount of the financial Black Scholes model used for The Company has an
asset. When calculating the valuation of options. obligation towards gratuity, a
EIR the company estimates The grant-date fair value of defined benefit retirement plan
the expected cash flows by equity-settled share-based covering eligible employees.
considering all the contractual payment granted to employees Gratuity is payable to all
terms of the financial instrument is recognised as an expense, eligible employees on death
(for example, prepayments, with a corresponding increase or on separation/termination
extensions, call and similar in equity, over the vesting in terms of the provisions of
options). The expected credit period of the awards. The the payment of the Gratuity
losses are considered if the credit amount recognised as an (Amendment) Act, 1997 or as
risk on that financial instrument expense is adjusted to reflect per the Company’s scheme
has increased significantly since the number of awards for whichever is more beneficial to
initial recognition. which the related service the employees.
Dividend income and non-market performance Provident Fund
Dividends are recognised in conditions are expected to Provident Fund Contributions
profit or loss on the date on which be met, such that the amount which are made to a Trust
the Company’s right to receive ultimately recognised is based administered by the Company
payment is established on the number of awards are considered as Defined

Godrej Consumer Products Limited 197


Benefit Plans. The interest the effect of the asset ceiling measured as the present value
rate payable to the members (if any, excluding interest), of expected future payments to
of the Trust shall not be are recognised immediately be made in respect of services
lower than the statutory rate in the balance sheet with a provided by the employees
of interest declared by the corresponding debit or credit upto the end of the reporting
Central Government under the to retained earnings through period using the projected unit
Employees Provident Funds OCI in the period in which they credit method.
and Miscellaneous Provisions occur. Remeasurements are Re-measurements are
Act, 1952 and shortfall, if any, not reclassified to profit or loss recognised in profit or loss in
shall be made good by the in subsequent periods. the period in which they arise.
Company. The Company’s Net interest expense (income) Actuarial gains and losses in
liability towards interest on the net defined liability respect of such benefits are
shortfall, if any, is actuarially (assets) is computed by charged to Statement of Profit
determined at the year end. applying the discount rate, and Loss in the period in which
The Company’s net obligation used to measure the net they arise.
in respect of defined benefit defined liability (asset), to the
plans is calculated separately net defined liability (asset) m) Leases
for each plan by estimating at the start of the financial Lease payments
the amount of future benefit year after taking into account The determination of whether an
that employees have earned in any changes as a result arrangement is (or contains) a
the current and prior periods, of contribution and benefit lease is based on the substance
discounting that amount and payments during the year. Net of the arrangement at the
deducting the fair value of any interest expense and other inception of the lease. The
plan assets. expenses related to defined arrangement is, or contains
The calculation of defined benefit plans are recognised in a lease if fulfillment of the
benefit obligations is profit or loss. arrangement is dependent on the
performed by a qualified When the benefits of a plan use of a specific asset or assets
actuary using the projected are changed or when a plan is and the arrangement conveys a
unit credit method. When the curtailed, the resulting change right to use the asset or assets,
calculation results in a potential in benefit that relates to past even if that right is not explicitly
asset for the Company, the service or the gain or loss specified in the arrangement.
recognised asset is limited to on curtailment is recognised As a lessee
the present value of economic immediately in profit or loss. Leases of assets where the
benefits available in the The Company recognises company has substantially all the
form of any future refunds gains and losses on the risks and rewards of ownership
from the plan or reductions settlement of a defined benefit are classified as finance leases.
in future contributions to the plan when the settlement Minimum lease payments
plan. To calculate the present occurs. made under finance leases are
value of economic benefits, iv) Other Long Term Employee apportioned between the finance
consideration is given to any Benefits charge and the reduction of the
applicable minimum funding The liabilities for earned outstanding liability. The finance
requirements. leave and sick leave are not charge is allocated to each
Re-measurement of the net expected to be settled wholly period during the lease term so
defined benefit liability, which within 12 months after the as to produce a constant periodic
comprise actuarial gains and end of the period in which the rate of interest on the remaining
losses, the return on plan employees render the related balance of the liability.
assets (excluding interest) and service. They are therefore The leased assets are measured

198 Annual Report 2016-17


Standalone Financials

initially at an amount equal to the or loss except to the extent that Deferred tax assets are reviewed
lower of their fair value and the it relates to items recognised at each reporting date and are
present value of the minimum directly in equity or in OCI. reduced to the extent that it is no
lease payments. Subsequent to In which case, the tax is also longer probable that sufficient
initial recognition, the assets are recognized directly in equity or taxable profit will be available
accounted for in accordance with other comprehensive income, to allow the benefit of part or
the accounting policy applicable respectively. all of that deferred tax asset
to that asset. Current Tax to be utilised such reductions
Leases of assets under which Current tax comprises the are reversed when it becomes
significant portion of the risks and expected tax payable or probable that sufficient taxable
rewards of ownership are retained recoverable on the taxable profit profits will be available.
by the lessor are classified as or loss for the year and any Unrecognized deferred tax assets
operating leases. Lease payments adjustment to the tax payable or are reassessed at each reporting
/receipts under operating leases recoverable in respect of previous date and recognised to the extent
are recognised as an expense / years. It is measured using tax that it has become probable
income on a straight-line basis rates enacted or substantively that future taxable profits will be
over the lease term unless the enacted by the end of the available against which they can
payments are structured to reporting period. Management be recovered.
increase in line with expected periodically evaluates positions Deferred tax is measured at the
general inflation to compensate for taken in tax returns with respect tax rates that are expected to be
the lessor’s expected inflationary to situations in which applicable applied to temporary differences
cost increases. tax regulation is subject to when they reverse, using tax rates
As a lessor interpretations and establishes enacted or substantively enacted
Leases in which the company provisions where appropriate. by the end of the reporting period.
does not transfer substantially • Current tax assets and The measurement of deferred
all the risks and rewards of liabilities are offset only if, tax assets and liabilities reflects
ownership of an asset are the Company has a legally the tax consequences that would
classified as operating leases. enforceable right to set off the follow from the manner in which
Rental income from operating recognised amounts; and the Company expects, at the
lease is recognized on a straight • intends either to settle on a reporting date, to recover or settle
line basis over the term of the net basis, or to realise the the carrying amount of its assets
relevant lease unless such asset and settle the liability and liabilities.
payments are structured to simultaneously. Deferred tax assets and liabilities
increase in line with expected Deferred Tax are offset only if:
general inflation to compensate for Deferred Income tax is recognised i) the entity has a legally
the lessor’s expected inflationary in respect of temporary difference enforceable right to set off
cost increase. Lease incentives between the carrying amount of current tax assets against
received are recognised as an assets and liabilities for financial current tax liabilities; and
integral part of the total lease reporting purpose and the amount ii) the deferred tax assets and the
expense, over the term of the considered for tax purpose. deferred tax liabilities relate
lease. Deferred tax assets are to income taxes levied by the
recognised for unused tax losses, same taxation authority on the
n) Income Tax unused tax credits and deductible same taxable entity.
Income tax expense/ income temporary differences to the iii) Deferred tax asset / liabilities
comprises current tax expense extent that it is probable that future in respect of temporary
income and deferred tax expense taxable profits will be available differences which originate
income. It is recognised in profit against which they can be utilized. and reverse during the

Godrej Consumer Products Limited 199


tax holiday period are not arising on the settlement or r) Earnings Per Share
recognised. Deferred tax translation of monetary items Basic earnings per share is
assets / liabilities in respect are recognized in profit or calculated by dividing the profit
of temporary differences that loss in the year in which they or loss for the period attributable
originate during the tax holiday arise except for the qualifying to the equity shareholders by
period but reverse after the tax cash flow hedge, which are the weighted average number of
holiday period are recognised. recognised in OCI to the extent equity shares outstanding during
Minimum Alternate Tax (MAT) that the hedges are effective. the period.
For the purpose of calculating
credit is recognized as an
p) Government grants diluted earnings per share,
asset only when and to the
Government grants, including the profit or loss for the period
extent there is a convincing
non-monetary grants at fair value attributable to the equity
evidence that the Company
are recognised when there is shareholders and the weighted
will pay normal tax during
reasonable assurance that the average number of equity shares
specified period.
outstanding during the period is
grants will be received and the
adjusted to take into account:
o) Foreign Currency Transactions company will comply with all the
• The after income tax effect of
i) Functional and Presentation attached conditions.
interest and other financing
currency When the grant relates to an
costs associated with dilutive
The Company’s financial expense item, it is recognised as
potential equity shares, and
statements are prepared income on a systematic basis over
• Weighted average number of
in Indian Rupees (INR “`”) the periods necessary to match
additional equity shares that
which is also the Company’s them with the costs that they are would have been outstanding
functional currency. intended to compensate. assuming the conversion of all
ii) Transactions and balances Government grants relating dilutive potential equity shares.
Foreign currency transactions to purchase of property, plant
are recorded on initial and equipment are included in s) Segment Reporting
recognition in the functional non-current liabilities as deferred The Company is considered to
currency using the exchange income and are credited to the be a single segment company
rate at the date of the profit and loss on a straight line – engaged in the manufacture
transaction. basis over the expected lives of of Personal and Household
Monetary assets and liabilities the related assets Care products. Consequently,
denominated in foreign the Company has, in its primary
q) Dividend segment, only one reportable
currencies are translated into
The Company recognises a business segment. As per
the functional currency at the
liability for any dividend declared INDAS-108 ‘Operating Segments’,
exchange rate at the reporting
but not distributed at the end of if a financial report contains
date. Non-monetary items
the reporting period, when the both the consolidated financial
that are measured based on
distribution is authorised and the statements of a parent that is
historical cost in a foreign
within the scope of Ind AS-108
currency are translated using distribution is no longer at the
as well as the parent’s separate
the exchange rate at the discretion of the Company on or
financial statements, segment
date of the initial transaction. before the end of the reporting
information is required only in the
Non-monetary items that are period. As per Corporate laws in
consolidated financial statements.
measured at fair value in a India, a distribution is authorized
Accordingly, information required
foreign currency are translated when it is approved by the
to be presented under Ind AS-108
using the exchange rate shareholders. A corresponding
Operating Segments has been
at the date the fair value is amount is recognized directly in
given in the consolidated financial
determined. equity.
statements.
Exchange differences

200 Annual Report 2016-17


NOTE 3 : PROPERTY, PLANT & EQUIPMENT ` Crore
Assets held
Particulars Owned Assets
under lease
Furniture Total
Freehold Leasehold Leasehold Plant and Office
Buildings and Vehicles Computers Building
Land Land Improvements Equipment Equipment
Fixtures
Year ended March 31, 2017
Gross Carrying Amount
Opening Gross Carrying Amount 0.51 14.21 122.52 24.43 203.07 9.34 10.14 7.26 15.07 90.26 496.81
Additions - 0.20 3.08 2.00 29.00 1.17 3.20 2.68 7.78 - 49.11
Assets classified as held for sale - - - - - - (1.78) - - - (1.78)

Godrej Consumer Products Limited


(Note 18)
Disposals - - (0.38) (0.03) (0.49) (0.13) (1.25) (0.02) (0.01) - (2.31)
Closing Gross Carrying Amount 0.51 14.41 125.22 26.40 231.58 10.38 10.31 9.92 22.84 90.26 541.83
Accumulated Depreciation
Opening Accumulated Depreciation - 0.41 2.67 2.10 24.70 0.80 2.13 0.78 2.89 1.32 37.80
Depreciation charge during the year - 1.08 3.60 3.10 28.69 1.23 2.42 1.43 5.24 1.50 48.29
Assets classified as held for sale - - - - - - (0.76) - - - (0.76)
(Note 18)
Disposals - - (0.27) (0.01) (0.06) (0.04) (0.53) (0.01) (0.01) - (0.93)
Closing Accumulated Depreciation - 1.49 6.00 5.19 53.33 1.99 3.26 2.20 8.12 2.82 84.40
Net Carrying Amount 0.51 12.92 119.22 21.21 178.25 8.39 7.05 7.72 14.72 87.44 457.43
Year ended March 31, 2016
Gross Block
Deemed Cost as at April 1, 2015 0.51 6.14 51.78 6.74 157.59 2.00 7.72 3.66 6.79 - 242.93
Additions - 8.07 70.80 18.16 55.26 7.46 3.80 4.34 8.48 90.26 266.63
Disposals - - (0.06) (0.47) (9.78) (0.12) (1.38) (0.74) (0.20) - (12.75)
Closing Gross Carrying Amount 0.51 14.21 122.52 24.43 203.07 9.34 10.14 7.26 15.07 90.26 496.81
Accumulated Depreciation
Depreciation charge during the year - 0.41 2.67 2.17 25.25 0.81 2.32 0.91 2.93 1.32 38.79
Disposals - - - (0.07) (0.55) (0.01) (0.19) (0.13) (0.04) - (0.99)
Closing Accumulated Depreciation - 0.41 2.67 2.10 24.70 0.80 2.13 0.78 2.89 1.32 37.80
Net Carrying Amount 0.51 13.80 119.85 22.33 178.37 8.54 8.01 6.48 12.18 88.94 459.01

The Company has availed the deemed cost exemption in relation to the property, plant and equipment on the date of transition and hence the net carrying amount has been
considered as the gross carrying amount on that date. Refer note below for the gross carrying value and accumulated depreciation on April 1, 2015 under the previous GAAP:
Standalone Financials

201
202
Deemed cost as on 1 April 2015 ` Crore
Assets held
Particulars Owned Assets
under lease
Furniture Total
Freehold Leasehold Leasehold Plant and Office
Buildings and Vehicles Computers Building
Land Land Improvements Equipment Equipment
Fixtures
Gross Carrying Value as on April 1, 2015 0.51 6.85 79.31 9.70 357.81 8.50 12.94 9.58 15.88 - 501.08
Accumulated Depreciation till March - 0.71 27.53 2.96 200.22 6.50 5.22 5.92 9.09 - 258.15
31, 2015
Net Block treated as Deemed cost 0.51 6.14 51.78 6.74 157.59 2.00 7.72 3.66 6.79 - 242.93
upon transition

Annual Report 2016-17


Standalone Financials

NOTE 4 : INTANGIBLE ASSETS ` Crore


Other Intangible assets
Particulars Goodwill Trademarks and Computer Technical Total
Brands Software Knowhow
Year ended March 31, 2017
Gross Carrying Amount
Opening Gross Carrying Amount 2.48 791.56 35.14 1.85 828.55
Additions - - 9.38 - 9.38
Disposals - - - - -
Closing Gross Carrying Amount 2.48 791.56 44.52 1.85 837.93
Accumulated Amortisation
Opening Accumulated Depreciation - 0.07 5.61 0.27 5.95
Amortisation recognised for the year - 0.07 8.04 0.28 8.39
Disposals - - - - -
Closing Accumulated Amortisation - 0.14 13.65 0.55 14.34
Closing Net Carrying Amount 2.48 791.42 30.87 1.30 823.59
Year ended March 31, 2016
Gross Carrying Amount
Deemed Cost as at April 1, 2015 2.48 791.56 21.37 1.85 814.78
Additions - - 14.54 - 14.54
Disposals - - (0.77) - (0.77)
Closing Gross Carrying Amount 2.48 791.56 35.14 1.85 828.55
Accumulated Amortisation
Amortisation recognised for the year - 0.07 5.78 0.27 6.12
Disposals - - (0.17) - (0.17)
Closing Accumulated Amortisation - 0.07 5.61 0.27 5.95
Closing Net Carrying Amount 2.48 791.49 29.53 1.58 822.60
The Company has availed the deemed cost exemption in relation to the intangible assets on the date of transition and hence the net
carrying amount has been considered as the gross carrying amount on that date. Refer note below for the gross carrying value and
accumulated amortisation on April 1, 2015 under the previous GAAP:

Deemed cost as on 1 April 2015


Trademarks Computer Technical
Particulars Goodwill
and Brands Software Knowhow
Gross Carrying Value as on April 1, 2015 12.60 1,055.39 42.52 2.64
Accumulated Amortisation till March 31, 2015 10.12 263.83 21.15 0.79
Net Block treated as Deemed cost upon transition 2.48 791.56 21.37 1.85

NOTE 5 : INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES


` Crore
Numbers Amounts
Face As at As at As at As at As at As at
Value March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Unquoted, fully paid up:
Carried at cost
(a) Investments in Equity
Instruments
(i) Subsidiary Companies
Godrej Netherlands B.V. EUR 100 1,000 1,000 1,000 107.23 107.23 76.22
Godrej South Africa (Pty) Ltd. ZAR 1 18,050,000 18,050,000 18,050,000 12.67 12.67 12.67

Godrej Consumer Products Limited 203


` Crore
Numbers Amounts
Face As at As at As at As at As at As at
Value March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Godrej Consumer Products USD 1 45,235,006 45,235,006 45,235,006 615.09 614.41 614.41
Mauritius Ltd.
Godrej Consumer Products USD 1 199,300,001 186,300,001 185,800,001 1,096.56 996.40 993.19
Holding (Mauritius) Ltd.
Godrej Household Products BDT 10 - 34,352,653 34,352,653 - 35.13 24.60
(Bangladesh) Pvt. Ltd.
Godrej Household Products LKR 10 21,501,045 21,501,045 21,501,045 37.33 27.10 27.10
Lanka (Pvt) Ltd.
Godrej Consumer Products BDT 100 4,999 4,999 4,999 0.04 0.04 0.04
(Bangladesh) Ltd.
Godrej Mauritius Africa Holdings USD 1 96,750,000 78,000,001 54,100,001 622.87 497.97 316.46
Ltd.
Godrej East Africa Holdings Ltd. USD 1 28,950,001 15,450,001 8,400,001 208.96 113.88 51.55
Godrej Tanzania Holdings Ltd. USD 1 11,350,000 4,750,001 200,001 76.10 31.91 1.11
Godrej SON Holdings INC. USD 1 100,000 - - 0.66 - -
(ii) Associate Company
Bhabhani Blunt Hairdressing Pvt ` 10 5,546 5,546 5,546 22.32 22.32 22.32
Ltd.
2,799.83 2,459.04 2,139.67
(b) Investments in Compulsorily Convertible Debentures of Associate Company
Bhabhani Blunt Hairdressing Pvt ` 10 3,060 3,060 3,060 12.00 12.00 12.00
Ltd.
2,811.83 2,471.04 2,151.67
Less : Provision for Diminution in the Value of Investments - (2.84) (2.84)
TOTAL 2,811.83 2,468.20 2,148.83

Aggregate Amount of Unquoted Investments 2,811.83 2,471.04 2,151.67


Aggregate Amount of Quoted Investments - - -
Aggregate Market Value of Quoted Investments - - -
Aggregate Provision for Impairment in the Value of Investments - 2.84 2.84
NOTE:
As per the Company’s policy, investments include the fair value of financial guarantees issued as security for loans taken by subsidiaries.
The details of such fair values included in the investments above is as shown below:

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Godrej Netherlands B.V. 4.52 4.52 -
Godrej Consumer Products Mauritius Ltd. 0.68 - -
Godrej Consumer Products Holding (Mauritius) Ltd. 11.83 - -
Godrej Mauritius Africa Holdings Ltd. 24.54 24.54 -
Godrej East Africa Holdings Ltd. 19.62 15.86 -
61.19 44.92 -

204 Annual Report 2016-17


Standalone Financials

NOTE 6 : OTHER INVESTMENTS (NON-CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unquoted, fully paid up:
At amortised cost
Investments in Deposits with Non-Banking Financial Companies 62.85 - -
At Fair Value through Profit or Loss
Investment in Equity Instruments* - - -
Quoted, fully paid up:
At amortised cost
Investments in Non-convertible Debentures with Non-Banking Financial 153.66 - -
Companies
TOTAL 216.51 - -

Aggregate Amount of Unquoted Investments 62.85 - -


Aggregate Amount of Quoted Investments 153.66 - -
Aggregate Market Value of Quoted Investments 153.89 - -
Aggregate Provision for Impairment in the Value of Investments - - -
* amount less than ` 0.01 crore

NOTE 7 : LOANS (NON-CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.04 0.05 0.05
Security Deposits 15.29 14.25 14.75
TOTAL 15.33 14.30 14.80

NOTE 8 : OTHER NON-CURRENT FINANCIAL ASSETS ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Fixed Deposits with maturity of more than 12 months (under lien against Bank 0.06 0.06 0.06
Guarantees)
Financial guarantee fee receivable 12.02 - -
TOTAL 12.08 0.06 0.06

NOTE 9 : OTHER NON-CURRENT ASSETS ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Capital Advances (Refer Note below) 12.82 4.41 27.08
Balances with Government Authorities
Considered Good 172.94 110.55 114.74
Considered Doubtful 13.62 13.62 12.23
Less: Provision for Doubtful Advances (13.62) (13.62) (12.23)
172.94 110.55 114.74
Other non-current assets
Considered Good 1.00 0.31 0.50
Considered Doubtful 1.22 1.22 -
Less: Provision for Doubtful Advances (1.22) (1.22) -
1.00 0.31 0.50
TOTAL 186.76 115.27 142.32

NOTE:
Capital Advances include ` 0.28 crore (31-Mar-16 ` 0.08 crore; 01-Apr-15 ` 5.18 crore) due from Related Parties.

Godrej Consumer Products Limited 205


NOTE 10 : NON-CURRENT TAX ASSETS (NET) ` Crore
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Advance Tax
[Net of Provision for taxation - ` 1301.89 crore (31-Mar-16 ` 1069.12 crore; 19.46 17.00 19.29
01-Apr-15 ` 913.17 crore)]
TOTAL 19.46 17.00 19.29
(Refer Note 22 for tax reconciliations)

NOTE 11 : INVENTORIES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
(Valued at lower of cost or net realizable value)
Raw Materials (Including Packing Materials) 186.52 190.57 176.61
Goods-in Transit 7.80 2.54 -
194.32 193.11 176.61
Work-in-Progress 30.81 35.98 47.11
Finished Goods 299.18 295.44 235.41
Stock-in-Trade 29.53 24.31 24.97
Stores and Spares 8.08 7.04 5.41
561.92 555.88 489.51
During FY 2016-17 an amount of NIL crores (31-Mar-16: ` 8.25 crore) was charged to the Statement of Profit and Loss on account of
damage and slow moving inventory. The reversal on account of above during the year amounted to ` 3.11 crore (31-Mar-16: NIL).

NOTE 12 : INVESTMENTS (CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unquoted, fully paid up:
At Fair Value through Profit or Loss
Investments in Mutual Funds 425.56 61.86 151.59
At amortised cost
Investments in Deposits with Non-Banking Financial Companies 174.52 81.45 -
Quoted, fully paid up:
At amortised cost
Investments in Non-convertible Debentures with Non-Banking Financial 52.78 - -
Companies
TOTAL 652.86 143.31 151.59

Aggregate Amount of Unquoted Investments 600.08 143.31 151.59


Aggregate Amount of Quoted Investments 52.78 - -
Aggregate Market Value of Quoted Investments 52.89 - -
Aggregate Amount of Provision for Impairment in the Value of Investments - - -

206 Annual Report 2016-17


Standalone Financials

NOTE 13 : TRADE RECEIVABLES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Secured
Considered Good 5.37 5.90 5.44
Unsecured
Considered Good 203.96 271.04 137.50
Considered Doubtful 5.07 3.00 6.74
Less: Provision for Doubtful Debts (5.07) (3.00) (6.74)
203.96 271.04 137.50
TOTAL 209.33 276.94 142.94

NOTE 14 A : CASH AND CASH EQUIVALENTS ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Balances with Banks
- In Current Accounts 56.35 18.29 44.18
- Deposits with less than 3 months original maturity 30.00 20.00 125.32
86.35 38.29 169.50
Cheques, Drafts on Hand - 2.01 0.09
Cash on Hand 0.19 0.27 0.27
TOTAL 86.54 40.57 169.86

NOTE 14 B : OTHER BANK BALANCES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Deposits with maturities more than 3 months but less than 12 months 2.94 108.50 325.86
(Refer Note (a))
In Unpaid Dividend Accounts 7.52 7.21 6.75
TOTAL 10.46 115.71 332.61

NOTE:
a) The fixed deposits include deposits under lien against bank guarantees ` 2.94 crore (31-Mar-16 ` 1.93 crore; 01-Apr-15 ` 2.05 crore)
b) For Specified Bank Notes, Refer note 47
c) There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior periods.

NOTE 15 : LOANS (CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.07 0.09 0.11
Security Deposits 0.04 0.02 0.21
TOTAL 0.11 0.11 0.32

NOTE 16 : OTHER CURRENT FINANCIAL ASSETS ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Financial guarantee fee receivable 3.71 - -
Others 5.29 3.47 3.71
TOTAL 9.00 3.47 3.71

Godrej Consumer Products Limited 207


NOTE 17 : OTHER CURRENT ASSETS ` Crore
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Balances with Government Authorities 28.62 59.84 48.88
Right to receive inventory 3.80 3.23 1.81
Other Advances (Refer Note Below)
Considered Good 21.71 14.92 15.95
Considered Doubtful 1.02 0.47 0.36
Less: Provision for Doubtful Advances (1.02) (0.47) (0.36)
TOTAL 54.13 77.99 66.64

NOTE:
Includes ` 0.12 crore (31-Mar-16 ` 0.01 crore; 01-Apr-15 ` 0.57 crore) due from Related Parties.

NOTE 18 : NON CURRENT ASSETS HELD FOR SALE ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Vehicles held for sale 6.49 - -


TOTAL 6.49 - -

NOTE:
In March 2017, the Management decided to dispose off vehicles which were no longer in use. The negotiations for sale to interested
parties are in process.

NOTE 19 : EQUITY SHARE CAPITAL ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Authorised
410,000,000 Equity Shares (31-Mar-16: 410,000,000; 01-Apr-15: 410,000,000) 41.00 41.00 41.00
of ` 1 each
10,000,000 Preference Shares (31-Mar-16: 10,000,000; 01-Apr-15: 10,000,000) 1.00 1.00 1.00
of ` 1 each
Issued
340,631,940 Equity Shares (31-Mar-16: 340,564,947; 01-Apr-15: 340,478,025) 34.06 34.06 34.04
of ` 1 each
Subscribed and Fully Paid up
340,600,816 Equity Shares (31-Mar-16: 340,533,823; 01-Apr-15: 340,446,901) 34.06 34.05 34.04
of ` 1 each fully paid up
TOTAL 34.06 34.05 34.04

NOTES:
a) During the year, the Company has issued 66,993 equity shares (previous year 86,922) under the Employee Stock Grant Scheme.
b) 31,124 Right Issue equity shares (previous year 31,124 equity shares) are kept in abeyance due to various suits filed in courts / forums
by third parties for which final order is awaited.
c) The reconciliation of number of equity shares outstanding and the amount of share capital at the beginning and at the end of the
reporting period:

208 Annual Report 2016-17


Standalone Financials

As at March 31, 2017 As at March 31, 2016 As at April 1, 2015


No. of Shares ` Crore No. of Shares ` Crore No. of Shares ` Crore
Shares outstanding at the beginning of 340,533,823 34.05 340,446,901 34.04 340,378,310 34.04
the year
Add : Shares Issued during the year * 66,993 0.01 86,922 0.01 68,591 0.00
Shares outstanding at the end of the year 340,600,816 34.06 340,533,823 34.05 340,446,901 34.04
* amount less than ` 0.01 crore

d) Terms / rights attached to equity shares

The Company has issued only one class of equity shares having a par value of ` 1 each. Each equity shareholder is
entitled to one vote per share.

During the year ended March 31, 2017 the amount of per share dividend recognised as distribution to equity
shareholders was ` 5.75 (previous year ` 5.50).

e) Shares held by Holding Company and Subsidiary of Holding Company and details of shareholders holding more than
5% shares in the Company:

As at As at As at
Name of the Shareholder
March 31, 2017 March 31, 2016 April 1, 2015
No. of Shares % held No. of Shares % held No. of Shares % held
Godrej & Boyce Manufacturing Co Ltd* 25,003,815 7.34 118,503,815 34.80 119,163,815 35.00
Godrej Industries Limited 80,937,620 23.76 80,937,620 23.77 80,277,620 23.58
Godrej Seeds & Genetics Limited 93,500,000 27.45 - - - -

*Godrej & Boyce Manufacturing Company has ceased to be the holding company with effect from March 30, 2017 owing to
reorganisation of shareholding within promoter group

f) Shares Reserved for issue under options


The Company has 128,895 (previous year 141,096) equity shares reserved for issue under Employee Stock Grant
Scheme as at March 31, 2017. (As detailed in Note 45)

g) Information regarding aggregate number of equity shares during the five years immediately preceding the date of
Balance Sheet:
The Company has not issued any bonus shares or shares for consideration other than cash and has not bought back
any shares during the past five years.

The Company has not allotted any shares pursuant to contract without payment being received in cash.
h) There are no calls unpaid on equity shares, other than shares kept in abeyance as mentioned in Note (b) above.
i) No equity shares have been forfeited.

j) Capital Management

The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure
and healthy capital ratios to support its business and maximize shareholder value. The Company makes adjustments
to its capital structure based on economic conditions or its business requirements. To maintain / adjust the capital
structure the Company may make adjustments to dividend paid to its shareholders or issue new shares.

The Company monitors capital using the metric of Net Debt to Equity. Net Debt is defined as borrowings less cash
and cash equivalents, fixed Deposits and readily redeemable investments.

Godrej Consumer Products Limited 209


NOTE 20 : OTHER EQUITY ` Crore
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Securities Premium Account 1452.31 1446.27 1439.88
General Reserve 154.05 154.05 154.05
Other Reserves
Capital Investment Subsidy Reserve 0.15 0.15 0.15
Capital Redemption Reserve 1.46 1.46 1.46
Debenture Redemption Reserve - - 24.39
Employee Stock Options Outstanding 9.83 8.28 8.61
11.44 9.89 34.61
Retained Earnings 2746.81 2139.63 1619.57
Other Comprehensive Income (Effective portion of cash flow hedges) (0.75) - -
4,363.87 3,749.84 3,248.11

OTHER RESERVES MOVEMENT ` Crore


As at As at
March 31, 2017 March 31, 2016
Capital Investment Subsidy Reserve
Balance as per last financial statements 0.15 0.15
Closing Balance 0.15 0.15
Capital Redemption Reserve
Balance as per last financial statements 1.46 1.46
Closing Balance 1.46 1.46
Debenture Redemption Reserve
Balance as per last financial statements - 24.39
(-) Transfer to retained earnings - (24.39)
Closing Balance - -
Employee Stock Options Outstanding
Gross Employee Compensation for Options granted 8.28 8.61
(-) Exercise of Share options (6.04) (6.39)
(+) Deferred Employee Compensation Expense 7.59 6.06
Closing Balance 9.83 8.28
TOTAL 11.44 9.89

Nature and purpose of reserves

1) Securities premium reserve


The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The
reserve is utilised in accordance with the provisions of the Companies Act.

2) General reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under
the Companies Act 2013.

3) Capital Investment Subsidy Reserve


Capital Investment Subsidy Reserve represents subsidy received from the government for commissioning of Malanpur
plant in the nature of capital investment.

210 Annual Report 2016-17


Standalone Financials

4) Capital redemption reserve


Capital Redemption reserve represents amount set aside by the company for future redemption of capital.

5) Debenture Redemption Reserve


The Company had issued debentures in India and as per the provisions of the Companies Act, 2013, is required to
create debenture redemption reserve out of the profits of the Company available for the payment of dividend. The
debenture redemption reserve has been transferred to retained earning during the year ended March 31, 2016 on
redemption of the debentures.

6) Employee Stock Options Outstanding


The shares option outstanding account is used to recognise the grant date fair value of options issued to employees
under the Employee Stock Grant Scheme which are unvested as on the reporting date and is net of the deferred
employee compensation expense.
Refer note 45 for details on ESGS Plans.

7) Effective portion of Cash Flow Hedges


The cash flow hedging reserve represents the cumulative portion of gains or losses arising on changes in fair value
of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising
on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated
under the heading of cash flow reserve will be reclassified to Statement of Profit and Loss only when the hedged
transaction affects the profit or loss or included as a basis adjustment to the non financial hedged item.

NOTE 21 : PROVISIONS (NON-CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Provision for Employee Benefits
Compensated Absences 3.77 2.72 3.99
TOTAL 3.77 2.72 3.99

NOTE 22 : TAX RECONCILIATIONS ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
The income tax expense consists of the following:
Current Tax:
Current tax on profits for the year 235.40 202.48
Deferred tax (net) 24.05 23.07
Total income tax expense 259.45 225.55

` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
Current tax and Deferred Tax related to items recognised in Other Comprehensive Income during the year:
Net (gain) / loss on remeasurements of defined benefit plans (6.59) (0.85)
Net (gain) / loss on revaluation of cash flow hedges (0.41) -
Total (7.00) (0.85)

Godrej Consumer Products Limited 211


Reconciliation of tax expense and the accounting profit
The reconciliation between estimated income tax expense at statutory income tax rate into income tax expense reported in Statement of
Profit & Loss is given below:
` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
Profit before income taxes 1,107.48 948.22
Indian statutory income tax rate 34.61% 34.61%
Expected income tax expense 383.28 328.16
Tax effect of adjustments to reconcile expected Income Tax Expense to
reported Income Tax Expense:
Deduction under Sec 80IC (213.22) (206.32)
Incremental deduction allowed for research and development costs (0.03) (0.63)
Tax impact of income not subject to tax (0.05) (0.21)
Tax effects of amounts which are not deductible for taxable income 11.49 23.64
Additional tax paid on book profits 77.98 83.65
Others - (2.74)
Total income tax expense 259.45 225.55

The Company benefits from the tax holiday available to units set up under section 80-IC and 80-IE of Income Tax Act, 1961. These tax
holidays are available for a period of ten years from the date of commencement of operations.

Deferred Tax (Liabilities): ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Property, Plant and Equipment (30.04) (24.27) (20.79)
Intangible assets (225.10) (208.85) (183.85)
Others (5.40) (1.26) (0.75)
Total deferred tax liabilities (260.54) (234.38) (205.39)

Deferred Tax Assets: ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Defined benefit obligations 2.28 1.84 2.30
Provisions 27.39 22.46 17.37
Others 6.63 5.41 3.27
Total deferred tax assets 36.30 29.71 22.94

Net Deferred tax (Liabilities) / Assets (224.24) (204.67) (182.45)

Movement in Deferred tax Liabilities / Asset ` Crore


Deferred
Property, Other Defined Other
Intangible Tax
plant and Deferred benefit Provisions Deferred
assets Liabilities /
equipment Tax Liability obligations Tax Asset
Asset (net)
At 1st April 2015 (20.79) (183.85) (0.75) 2.31 17.37 3.26 (182.45)
(Charged)/Credited :
- to profit or loss (3.48) (25.00) (0.51) (0.47) 4.24 2.15 (23.08)
- to other comprehensive income - - - - 0.85 - 0.85
As at 31st March 2016 (24.27) (208.85) (1.26) 1.84 22.46 5.41 (204.68)
(Charged)/Credited :
- to profit or loss (5.77) (16.25) (4.14) 0.44 0.86 0.81 (24.05)
- to other comprehensive income - - - - 4.07 0.41 4.48
As at 31st March 2017 (30.04) (225.10) (5.40) 2.28 27.39 6.63 (224.24)

212 Annual Report 2016-17


Standalone Financials

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 relate to income taxes levied by the
same tax authority.
Significant management judgment is required in determining provision for income tax, deferred income tax assets and
liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on
estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets
will be recovered.
As on March 31, 2017 the tax liability with respect to the dividends proposed is ` 83.21 crores (31-Mar-16 : ` 19.06
crores, 1-Apr-15 : ` 17.33 crores)
During the year, the Company has not accounted for tax credits in respect of Minimum Alternative Tax (MAT credit) of
` 77.98 crores (31-Mar-16 : ` 83.65 crores, 1-Apr-15 : ` 94.72 crores ). The Company is not reasonably certain of availing
the said MAT credit in future years against the normal tax expected to be paid in those years and accordingly has not
recognised a deferred tax asset for the same.
` Crore
Tax Credits As at As at As at
Expiry Date Expiry Date Expiry Date
carried forward March 31, 2017 March 31, 2016 April 1, 2015
2006-07 - 14.28 March 31, 2017 14.28 March 31, 2017
2007-08 12.02 March 31, 2018 12.02 March 31, 2018 12.02 March 31, 2018
2008-09 8.30 March 31, 2019 8.30 March 31, 2019 8.30 March 31, 2019
2009-10 29.72 March 31, 2020 29.72 March 31, 2020 29.72 March 31, 2020
2010-11 100.08 March 31, 2021 100.08 March 31, 2021 100.08 March 31, 2021
2011-12 40.09 March 31, 2022 40.09 March 31, 2022 40.09 March 31, 2022
2012-13 60.60 March 31, 2023 60.60 March 31, 2023 60.60 March 31, 2023
2013-14 84.35 March 31, 2024 84.35 March 31, 2024 84.35 March 31, 2024
2014-15 94.72 March 31, 2025 94.72 March 31, 2025 94.72 March 31, 2025
2015-16 83.65 March 31, 2026 83.65 March 31, 2026
2016-17 77.98 March 31, 2027

NOTE 23 : OTHER NON-CURRENT LIABILITIES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unearned premium on guarantees given to subsidiaries 26.77 21.09 4.76
Others 1.05 - -
TOTAL 27.82 21.09 4.76

NOTE 24 : BORROWINGS ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Secured
Cash Credit from Bank (Refer Note (a) below) - - 0.34
Unsecured
Packing Credit from Bank (Refer Note (b) below) - 2.75 -
Commercial Paper (Refer Note (c) below) 148.97 - -
148.97 2.75 -
TOTAL 148.97 2.75 0.34

NOTES:
a) Cash Credit from Banks are secured by hypothecation of Inventories and Book debts repayable on demand.
b) The packing credit is granted by banks for a maximum tenure of 180 days at Bank’s base rate less interest subvention of 3% per
annum as per Interest Equalisation Scheme of Government of India.
c) Commercial Paper carries an average interest rate of 6.49% and are repayable at maturity dates in May 2017.
d) The Company does not have any default as on the Balance Sheet date in the repayment of any loan or interest.

Godrej Consumer Products Limited 213


NOTE 25 : TRADE PAYABLES ` Crore
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Dues to Micro, Small and Medium Enterprises - - -
Others 1,120.36 851.32 992.12
TOTAL 1,120.36 851.32 992.12

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at
the balance sheet date. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such
parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

NOTE 26 : OTHER CURRENT FINANCIAL LIABILITIES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Current Maturities of Long Term Debt (Refer Notes (a) below) - - 260.20
Security Deposit Received 4.19 4.66 4.42
Unclaimed Dividends (Refer Note (b) below) 7.52 7.21 6.75
Capital creditors and other payables 22.47 10.01 20.30
TOTAL 34.18 21.88 291.67

NOTES:
a) Current Maturities of Long term Debt as on April 1, 2015 include 2,500 zero-coupon, unsecured, redeemable, non-convertible
debentures having a face value of ` 10 lac each, redeemable at a premium, which will yield 9.35% p.a. at maturity. These debentures
have been redeemed on December 18, 2015.
b) There are no amounts due to be credited to Investor Education and Protection Fund in accordance with Section 125 of the Companies
Act, 2013 as at the year end.

NOTE 27 : OTHER CURRENT LIABILITIES ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Statutory Dues (VAT, Excise, Service Tax, Octroi, etc) 39.44 40.94 40.59
Advance received from Customers 7.45 7.01 6.45
Employee Benefits Payable 85.94 119.58 71.53
Unearned premium on guarantees given to subsidiaries 19.15 13.51 3.51
Others 3.57 7.13 4.44
TOTAL 155.55 188.17 126.52

NOTE 28 : PROVISIONS (CURRENT) ` Crore


As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Provision for Employee Benefits
Gratuity (Net) 44.16 27.76 21.54
Compensated Absences 2.81 2.59 2.79
Other Provisions :
Provision for Sales Returns 14.03 11.84 7.29
Provision towards Litigations 7.90 7.44 5.88
TOTAL 68.90 49.63 37.50

214 Annual Report 2016-17


Standalone Financials

Movements in each of the class of other provision during the financial year are set out below: ` Crore
Provision towards
Sales Return
Litigation

As at April 1, 2015 7.29 5.88


Additional provisions recognised 4.55 2.16
Amount Utilised /Unused amounts reversed - (0.60)
As at March 31, 2016 11.84 7.44
As at April 1, 2016 11.84 7.44
Additional provisions recognised 2.19 0.74
Amount Utilised /Unused amounts reversed - (0.28)
As at March 31, 2017 14.03 7.90

Sales Returns:
When a customer has a right to return the product within a given period, the Company recognises a provision for sales
return. This is measured on the basis of average past trend of sales return as a percentage of sales. Revenue is adjusted
for the expected value of the returns and cost of sales are adjusted for the value of the corresponding goods to be
returned.

Legal Claims:
The provisions for indirect taxes and legal matters comprises of numerous separate cases that arise in the ordinary
course of business. A provision is recognised for legal cases; if company assesses that it is probable that an outflow
of economic resources will be required. These provisions have not been discounted as it is not practicable for the
Company to estimate the timing of the provision utilisation and cash outflows, if any, pending resolution.

NOTE 29 : REVENUE FROM OPERATIONS ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Sale of Products (including excise duty) 5013.69 4820.02
Other Operating Revenues
a) Royalty & Technical Fees 54.60 53.71
b) Miscellaneous Income 20.70 9.67
TOTAL 5088.99 4883.40

NOTE 30 : OTHER INCOME ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Interest Income on:
Non-convertible debentures and fixed deposits with Non-Banking Financial Companies at 18.74 2.03
amortised cost
Deposits with banks 1.99 25.82
On Others 0.17 0.15
Net Gain on Sale of Investments 6.23 12.99
Fair Value Gain on financial assets measured at fair value through profit or loss 11.60 0.16
Reversal of provision for diminution in investments 2.84 -
Other Non-Operating Income
Profit on Sale of Fixed Assets (net) 0.13 -
Guarantee Commission income 20.99 18.60
Miscellaneous Non-operating Income (Refer Note below) 0.91 1.62
TOTAL 63.60 61.37

NOTE :
Miscellaneous non-operating income includes ` 0.61 crore (Previous Year ` 0.60 crore), recovered from the GCPL ESOP Trust towards loan
repayment, which was earlier written off against reserves under a Scheme of Amalgamation approved by the Hon’ble High Court of Bombay.

Godrej Consumer Products Limited 215


NOTE 31 : COST OF MATERIALS CONSUMED ` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
Raw material and packing material
Opening Inventory 193.11 176.61
Add : Purchases (Net) 1835.98 1864.37
2029.09 2040.98
Less: Closing Inventory (194.32) (193.11)
Cost of Materials Consumed 1834.77 1847.87

NOTE 32 : CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN- TRADE


AND WORK-IN-PROGRESS ` Crore
Year ended Year ended
March 31, 2017 March 31, 2016
Opening Inventory
Finished Goods 295.44 235.41
Stock-in-Trade 24.31 24.97
Work-in-Progress 35.98 47.11
355.73 307.49
Less: Closing Inventory
Finished Goods 299.18 295.44
Stock-in-Trade 29.53 24.31
Work-in-Progress 30.81 35.98
359.52 355.73
(Increase) in Inventories (3.79) (48.24)

NOTE 33 : EMPLOYEE BENEFITS EXPENSE ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Salaries and Wages 270.87 307.19
Contribution to Provident and Other Funds 14.94 12.36
Share based payments to Employees (Employee Stock Grant Scheme) (Refer Note 45) 7.59 6.06
Staff Welfare Expenses 5.61 5.76
TOTAL 299.01 331.37

NOTE 34 : FINANCE COSTS ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Premium on Debentures - 17.68
Interest Expense
Unwinding of interest on liabilities 2.79 0.45
Others 5.20 2.21
Bill discounting Charges 28.07 34.33
TOTAL 36.06 54.67

216 Annual Report 2016-17


Standalone Financials

NOTE 35 : DEPRECIATION AND AMORTISATION EXPENSES ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Depreciation on property, plant and equipment 48.29 38.79
Amortisation on intangible assets 8.39 6.12
TOTAL 56.68 44.91

NOTE 36 : OTHER EXPENSES ` Crore


Year ended Year ended
March 31, 2017 March 31, 2016
Consumption of Stores and Spare Parts 12.50 13.56
Power and Fuel 68.89 97.25
Rent (Net) (Refer Note (a) below) 40.30 36.88
Repairs and Maintenance
Plant and Equipment 4.20 4.26
Buildings 5.13 5.03
Others (Net) 23.15 21.99
32.48 31.28
Insurance 4.39 4.75
Rates and Taxes 3.08 5.41
Processing and Other Manufacturing Charges 149.12 139.09
Travelling and Conveyance 31.85 31.46
Auditors' Remuneration
As Statutory Auditor 1.44 1.48
For Taxation Matters 0.40 0.42
For Other Services 0.48 0.51
Reimbursement of Expenses 0.05 0.05
Service Tax 0.09 0.14
Legal and Professional Charges 19.13 19.01
Donations 1.36 7.92
Sales Promotion 35.45 29.83
Advertising and Publicity (Refer Note (c) and (d)) 528.22 493.60
Selling and Distribution Expenses 78.20 78.80
Freight 178.38 184.51
Net Loss on Sale/ write off of Fixed Assets - 11.39
Net Loss on Foreign Currency Transactions and Translations 0.95 0.66
Bad Debts Written Off 0.29 3.92
Provision for Doubtful Debts / Advances 2.43 (2.13)
Miscellaneous Expenses (Net) 75.75 52.10
TOTAL 1265.23 1241.89

NOTE :
a) During the year, the Company has netted off the rental income in respect of corporate office premises amounting to ` 9.12 crore for
the year ended on March 31, 2017 (Previous Year ` 7.99 crore) with rental expenses amounting to ` 9.12 crore for the year ended on
March 31, 2017 (Previous Year ` 7.99 crore) in respect of similar premises in the same building.
b) Miscellaneous Expenses include the Company’s share of various expenses incurred by group companies for sharing of services and
use of common facilities.
c) During the current year, the Company has paid ` 0.03 crore as donation to Armed Forces Flag Day included under Donations above.
d) During the previous year, the Company had paid ` 0.10 crore for an advertisement in the commemorative souvenir on Pandit
Jawaharlal Nehru published by the All India Congress Committee included under Advertising and Publicity above.

Godrej Consumer Products Limited 217


NOTE 37 : EARNINGS PER SHARE
As at As at
March 31, 2017 March 31, 2016
Net Profit After Tax (` Crore) 848.03 722.67
Number of Shares outstanding at the beginning of the year 340,533,823 340,446,901
Add : Shares Issued during the year 66,993 86,922
Number of Shares outstanding at the end of the year 340,600,816 340,533,823
Weighted Average Number of Equity Shares
For calculating Basic EPS 340,578,974 340,513,052
Effect of dilution:
Shared based payments 85,924 91,992
For calculating Diluted EPS 340,664,898 340,605,044
Earnings Per Share Before and After Extraordinary Items (Face Value ` 1)
Basic (`) 24.90 21.22
Diluted (`) 24.89 21.22

NOTE 38 : COMMITMENTS
Estimated value of contracts remaining to be executed on capital account to the extent not provided for : ` 46.72 crore
(31-Mar-16 ` 34.40 crore; 01-Apr-15 ` 39.43 crore), net of advances there against of ` 15.80 crore (31-Mar-16 ` 3.40
crore; 01-Apr-15 ` 20.30 crore).

NOTE 39 : DIVIDEND
The Board has declared a fourth interim dividend for the year 2016-17 on May 9, 2017 at the rate of ` 12 per share
(1200% of the face value of ` 1 each) amounting to ` 408.68 crore. The dividend distribution tax on the said dividend is `
83.20 crore.

NOTE 40 : CONTINGENT LIABILITIES


` Crore
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
a) CLAIMS FOR EXCISE DUTIES, TAXES AND OTHER MATTERS
i) Excise duty demands aggregating ` 64.20 crore (31-Mar-16 ` 69.14 41.98 45.64 46.01
crore, 1-April-15 ` 69.70 crore)against which the Company has
preferred appeals (net of tax).
ii) Sales tax demands aggregating ` 52.34 crore (31-Mar-16 ` 49 crore, 34.23 32.35 41.23
1-April-15 ` 62.46 crore) against which the Company has preferred
appeals (net of tax).
iii) Income-tax matters
Demand notices issued by Income-tax Authorities. 10.03 9.83 16.01
iv) Other matters : ` 3.00 crore (previous year ` 3.00 crore) (net of tax). 1.96 1.98 1.98

218