Annual & Integrated

Report 2022-23
Visit our Annual &
Integrated Report microsite
Contents
Integrated Reporting 04

Our Company 16

Board of Directors 20

A Letter to Our Shareholders 23

In Conversation with Sudhir Sitapati 31

Management Discussion and Analysis

Our Business Model 48

Risk Management 50

Other Disclosures 66

Our Strategic Pillars 68

Statutory Reports

Board’s Report 170

Report on Corporate Governance 209

Financial Statements

Standalone 236

Consolidated 326

Notice of the AGM 426

 Integrated Reporting
At Godrej Consumer Products Limited (GCPL), we have been publishing a statutory annual report, in line with the Securities and
Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015; Companies Act, 2013; and
Secretarial Standards. This is our fifth Annual and Integrated Report, aligned with the principles of the International Integrated
Reporting Framework (referred to as the <IR> framework) developed by the International Integrated Reporting Council (IIRC).
In addition, this report is aligned with the Global Reporting Initiative (GRI) standards required by the Sustainability Reporting
Guidelines of GRI and the Business Responsibility and Sustainability Report (BRSR) requirements of SEBI.

Our R&D teams lead new product development

across the geographies we operate in

4
Content of Scope and Management
the report boundary Committee
endorsement and
assurance
Through integrated reporting, we aim This report is for GCPL, including GCPL
to share an overview of our financial and manufacturing plants in India, Africa,
non-financial performance that has helped Indonesia, Latin America, and the USA.
create short and long-term values for our The data and content are consolidated for
stakeholders. the business, unless otherwise specified. The GCPL Management Committee
remains committed to high levels
This report provides insights on: In line with our commitment to transparent of disclosure and transparency in
• Material issues and our operating reporting and sustainable business communication with all stakeholders.
context practices, we have adhered to the The Committee has been involved in the
• Governance structure taxonomy established by the Securities process of drafting this report and fully
• Our key strategies and Exchange Board of India’s Business endorses its contents.
• Our approach to value creation within Responsibility and Sustainability Report
each of the capitals (BRSR) and the Task Force on Climate- In addition, GCPL has commissioned
• Our performance against identified Related Financial Disclosures (TCFD) TUV India Private Limited to conduct an
key performance indicators (KPIs) framework. Our adherence to these robust independent external assurance of
• Interconnectedness between frameworks provides a comprehensive non-financial information disclosed
our material issues, strategies, understanding of our sustainability in GCPL’s Integrated Report for the
performance, and value creation aspirations and the effectiveness of our period April 1, 2022 to March 31, 2023.
• Financial and statutory reports actions to our stakeholders. It is a ‘limited assurance’ report of
GCPL’s sustainability information for the
applied reporting period. This assurance
statement is based on the principles
Reporting of IIRC Integrated Reporting, GRI

period
standards, and the ISAE 3000 standard.

All information, financial and

non-financial, is reported for the
period from April 1, 2022 to March 31,
2023. For a holistic overview of our
performance on sustainability, we have Read TUV India’s assurance
also incorporated comparative figures statement of GCPL’s ESG and
for the previous year (fiscal year 2021- non-financial information

22) and baseline year (fiscal year 2011-

12, except for statutory financials).

5
 Materiality

Approach to materiality Methodology

We approach materiality from a strategic The process of determining materiality Materiality analysis was performed
and value creation perspective. Material at GCPL is compliant with the prescriptions through identification and prioritisation. A
issues are identified by engaging in of the IIRC and draws from the 6 capitals of systematic step-wise process was followed.
conversations with our stakeholders and integrated reporting. First, relevant insights were collected
monitoring broad trends in the industry. through primary and secondary research
Performance on material issues forms the and, then, necessary calculations were
core content of this Annual and Integrated performed to obtain the materiality matrix.
Report. In fiscal year 2020-21, we Primary inputs were obtained through
conducted an extensive materiality direct stakeholder engagement, that is,
exercise, which involved engaging an through discussions on material issues with
external partner and enabling a thorough various stakeholder groups. Furthermore,
understanding of the relationship of the surveys were conducted to reach out to
material issues with our business risks, employees and gather information at scale.
objectives, and value creation.

Overview of the methodology

Identify issues across Engage with 450+ key stakeholders Develop a materiality matrix
6 capitals on material issues using a specialised tool
(Issue identification) (Stakeholder engagement) (Issue prioritisation)

• GCPL sustainability reports • Leadership team • Stakeholder responses

• Peer analysis • Employees • External requirements
• Sector trends • Investors • Significant assessment
• Internal team consultation • Suppliers • Internal team consultation
• Distributors
• NGO partners
• Consumers
• Beneficiaries
• Industry associates

6
 Stakeholder engagement
The secondary research primarily Upon identifying a broad list of material To develop the materiality matrix, it was
involved analysis of various sector trends, issues, interactions were initiated with each necessary to collate stakeholder responses.
sustainability reports, and select peer key stakeholder group. Each material issue Because not all stakeholders are equally
analysis. These aspects were further was assessed for its relative importance important in the organisational context,
rated based on the level of importance with respect to different stakeholder groups they were rated based on 2 parameters:
ascertained by us and our stakeholders. and aggregated. Stakeholder analysis was ability to influence GCPL and extent of
performed by identifying key stakeholders influence due to GCPL. Stakeholders were
and administering tailored questionnaires to then assigned weightages on the basis of
each of them. these 2 parameters.

Stakeholder prioritisation
Ability of a stakeholder to Extent of influence on a
strongly influence GCPL’s stakeholder due to GCPL’s
Stakeholder group performance and operations performance and operations

Leadership team High High

Employees Medium High

Suppliers Medium Medium

Distributors Medium Medium

Consumers Medium Medium

Investors Medium High

NGO partners Low Medium

Beneficiaries Low Medium

Industry associates Low Medium

7
Feedback from stakeholders determined our top material issues, which are all within our boundary of operations.
Our material issues are linked to our strategic pillars.

Top material issues Link to our strategic pillars

1. Sustainable packaging People and planet alongside profit

Over 34% of our plastic is recyclable. We have reduced our plastic packaging intensity
by 17% since the fiscal yeay 2019-20.

2. Research and development (R&D) Radical simplification

We continuously assess the sustainability of our products from a life cycle perspective
and use the insights to constantly re-shape and strengthen our new product development
framework.

3. Responsible marketing and Radical simplification

communication Our products are priced affordably, and we are committed to offering our innovative,
eco-friendly products at a green discount rather than a premium price. We intend to make
sustainable choices more appealing and affordable, driving a positive change in consumer
behaviour and fostering a greener, more responsible market.

8
Top material issues Link to our strategic pillars

4. Building inclusive and People and planet alongside profit

prosperous communities We are committed to ensuring human rights of our employees and the communities
where we operate, suppliers and business partners, and customers and consumers. We
conducted a self-assessment across our plants and locations in India and Indonesia,
covering 93% of our blue collar workforce. Our CSR initiatives are impactful, making a
difference in the lives of millions.

5. Governance and accountability People and planet alongside profit

We have a board level ESG committee with a focus on environment, social and
governance issues of the company. They have oversight on sustainability risks,
opportunities and progress against goals.

6. Occupational health and safety People and planet alongside profit

We focus on inculcating a culture of safety and health and creating an incident-free
organisation. We are at a zero-fatality record since the last 3 years and we have also not
had any major fire or any other significant property damage.

7. Skill development and training People and planet alongside profit

100% of our white collar employees and over 90% of our workers are trained on skill
upgradation, health and safety, prevention of sexual harassment, and other human rights
issues.

9
 The following figure maps out the
entire universe of material issues
and stakeholder input and its
significance in our business.

10
11
 We engage with all our and decision-making and grow The table below provides an
stakeholders on a regular basis our business. In a crisis like overview of our stakeholder
to foster and nurture strong the COVID-19 pandemic, our engagement process and the
relationships, which in turn partnerships with our stakeholders steps we take to understand
help us improve our strategy became even more important. the needs and priorities of each
stakeholder group.

Stakeholders and their Frequency and manner of

significance stakeholder engagement

Consumers • Making our supply chain best-in-class: Improving the environmental footprint of
our entire supply chain
• Building a more inclusive and greener world: Improving social relationships
through CSR interventions in local communities

Investors and • Investor meets

shareholders • Investor calls
• Roadshows and grievance forums for shareholders and investors

Employees • Weekly/monthly reviews

• HR forums
• Town halls
• Small group discussions
• Employee engagement surveys
• 360-degree feedback

12
Sustainability and Our engagement
other concerns approach

• Product safety and quality • Providing high-quality, safe products that delight consumers
• Waste management and • Understanding short and long-term needs
circular economy • Ensuring responsible consumer engagement

• Profitability and growth • Communicating progress transparently

• Focus on carbon emission, renewable and clean
energy, and air pollution
• Technology, product, and process innovation
• Embed sustainability in supply chain

• Health, safety, and mental well-being • Ensuring a safe and productive place to work where employees
• Skill development and learning can be their whole selves
• Circular economy principles • Prioritising learning and development
• Water recycling and reuse • Highlighting employee feedback mechanisms through a variety
• Sustainable packaging of channels
• Enabling medical facilities for employees and their families

13
 Stakeholders and their Frequency and manner of
significance stakeholder engagement

Suppliers • Sustainable procurement initiative

• Supplier meets
• Audits
• Annual suppliers conference

Customers • Customer meets

• Customer surveys
• Feedback calls
• Direct visits

NGO partners and • Project planning and review meetings

community • Need assessment surveys
• Field visits
• Feedback surveys

Government and • One-on-one meetings

regulatory bodies • Meetings in industry forums

14
Sustainability and Our engagement
other concerns approach

• Product safety and quality • Supporting and enhancing their capabilities through skill
• Responsible supply chain development, growth opportunities, and safe operations
• Reducing environmental footprint
• Waste management and circular economy
• Sustainable packaging

• Greater market penetration • Using technology to assess and respond in an agile manner
• Responsible marketing and communication • Providing high-quality, safe products that delight consumers
• Ensuring responsible consumer engagement

• Building inclusive and prosperous communities • Responding to the COVID-19 crisis by supporting communities
with immediate relief kits and medical supplies and longer term
livelihood revival
• Creating and scaling up programmes that meet the needs
of communities in terms of livelihoods, public health, waste
management, and water conservation

• Carbon emission, energy efficiency, and waste • Committing to meet and exceed compliance and regulatory
management mandates
• Building inclusive and prosperous communities • Collaborating on national agendas to build inclusive and
prosperous communities

15
 Our
Company
Godrej Consumer Products is a part of the over 125-year-young Godrej Group.
We are fortunate to have a proud legacy built on the strong values of trust, integrity,
and respect for others. As an emerging markets company, we have witnessed rapid
growth and are pursuing our exciting and innovative aspirations.

Our Values

16
 Our Purpose
Bringing the goodness of health and beauty
to consumers in emerging markets

Watch the video

17
 85+ 13,000+ 1.2 bn
countries Godrejites consumers

1.6 bn 12 bn ~75%
USD USD

FY 22-23 FY 22-23 revenue

revenue market cap from top 11 brands

(As on 31 March 2023)

Leading presence in
Asia, Africa, and Latin America

Latin America Sub-Saharan Africa India & SAARC Indonesia

#1 Hair Colour (Argentina) #1 Hair Colour #1 Household Insecticides #1 Household Insecticides

#1 Hair Fixing Sprays (Argentina)** (Ethnic hair) #1 Air Care #1 Air Care
#1 Depilatory Products (Chile) #1 Hair Colour #1 Baby Wipes
Source: **Scentia
18
Home Care Personal Care

Household Insecticides Personal Wash and Hygiene

Air Care Hair Colour
Fabric Care Premium Beauty and Professional Products
Home Hygiene

Sustainability
For over 125 years, the Godrej Group
has actively championed social responsibility.
It’s core to who we are.

23% Creating a more Aligned with the Adopted

of the promoter holdings

inclusive and greener
planet through
United Nations TCFD
in the Group is held Sustainable Development framework and
in trusts that invest in Godrej Goals, and the needs of recommendations to assess
education, environment, local communities and mitigate risks and
and health
Good & Green opportunities arising from
climate change

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 Board of Directors
Nisaba Godrej Sudhir Sitapati Nadir Godrej
Executive Chairperson Managing Director and CEO Non-executive Director

Indian C ESG Indian ESG Indian ESG C

Tanya Dubash Pirojsha Godrej Jamshyd N Godrej

Non-executive Director Non-executive Director Non-executive Director

Indian ESG Indian C Indian

Ireena Vittal Omkar Goswami Narendra Ambwani

Lead Independent Director Independent Director Independent Director

Indian Indian C Indian ESG C

20
Board Committees

Nomination and Remuneration Committee Risk Management Committee Stakeholder Relationship Committee
Audit Committee CSR Committee C Chairman
ESG ESG Committee

Pippa Tubman Armerding Ndidi Nwuneli Sumeet Narang

Independent Director Independent Director Independent Director

French Nigerian ESG Indian

Mapping our Board of Directors basis their skill/capability matrix

Strategy and Consumer staples Market Tech and future People and talent Governance, Diversity of
business industry expertise expertise perspective understanding finance, and risk perspective

Ms. Nisaba Godrej

Mr. Sudhir Sitapati

Mr. Nadir B. Godrej

Ms. Tanya Dubash

Mr. Pirojsha Godrej

Mr. Jamshyd Godrej

Ms. Ireena Vittal

Mr. Omkar Goswami

Mr. Narendra Ambwani

Ms. Pippa Armerding

Ms. Ndidi Nwuneli

Mr. Sumeet Narang

21
22
A Letter to
Our Shareholders
Dear shareholders,

Thank you for your continued belief in GCPL and taking the time to read this note.

Overall, I believe fiscal year 2022-23 was a moderate year of performance, but a
strong year of strategic transformation. At value and volume growths of 8% and
-1% respectively, and with PAT remaining flat, we were far off our targets for the
year. However, we were happier with our performance in the second half, with
quarter four ending on a strong note.

Category development continues to be at the heart of our strategy, and even in a

difficult year of cost inflation we continued our increased and strong investments
behind brands. One of the best examples is Air Care. We have pivoted this in
India and Indonesia on the insight that the category is adopted when guests visit
you at home.

We are also driving relevance of our brands by enhancing access through the
creation of value packs and improving distribution through educative sampling.

I have often commented that working with Sudhir is such a learning experience
that I feel like I am getting a second MBA. It is a pleasure to see the superb clarity
of thought and deep execution capabilities that he and the team have.

23
 I am very excited about the potential of our week, which didn’t leave much time for I hope that we can tell the stories of the
recent acquisition of the FMCG business of due diligence. But he was excited by the choices we are making today with similar
Raymond Consumer Care. The deodorant category and the potential, so he made an pride when we look back on them a few
opportunity in India is significant. Raymond offer for ₹100 crore, and asked Uday to buy decades later.
is a leading player in the Deodorants and 10% of the company, and the then CEO, to
Sexual Wellness categories in India with buy 5%, and said he would loan them the While growth in our Africa business has been
brands like Park Avenue and KamaSutra. money. That was the due diligence he built good over the last few years, we need to be
So, through this, we are also increasing the in. A year later, we entered a joint venture more strategic about some of the structural
number of categories we play in in India, and with Sara Lee and sold 51% of the business issues and forex management. The team has
to categories with the potential to deliver for ₹100 core, the same amount we had several projects underway to simplify and
double-digit multi-decade growth. paid for acquiring the whole company. strengthen the business in the long run. In
Indonesia, as part of our efforts to simplify
At our analyst meet in May, I shared my We went on to invest in and grow our sales and distribution, we have implemented
excitement and how perspectives from the Household Insecticides business over the a stronger structure for General Trade and
past can give you some thoughts for the decades. It was a separate business from moved from a direct distribution model to a
future. For me, it goes back to the story of GCPL till 2010, when we acquired Sara Lee’s distributor-led model.
how we acquired our Goodknight brand. stake and merged the business into GCPL.
We believe this business has an implied As I do every year, I would like to share my
In 1994, Transelektra, an insecticides value of around ₹30,000 crore today, based perspectives on what I believe could have
company, which made the Goodknight and on the current GCPL market cap, with an been better, what went well, and what we
HIT brands, was up for sale. Hindustan Lever underlying 30% CAGR on value creation. need to do going forward.
was keen to acquire it, but the deal was held
up and the owner didn’t want to wait longer.
So, my father, Adi, was approached by Uday
Kotak, the banker overseeing the transaction,
with the offer. He needed to decide in a

Goodknight was acquired in 1994 and then acquired again and merged in 2010.
We believe this business has an implied value of around ₹30,000 crore today, based
on the current GCPL market cap, with an underlying 30% CAGR on value creation.

Godrej buys 51% of the GCPL acquired Sara We believe this

the Goodknight business Lee’s 51% stake in the business has an
business for sold to Sara business for ₹1,240 implied value of
₹100 crore Lee for ₹100 crore, and merged the around ₹30,000
crore, starting business into GCPL crore today, based
a JV on the current
GCPL market cap

1994 1995 2010 2023

24
Spending time across our global markets in India, Indonesia, and Africa,
engaging with our team members, consumers, vendors, and partners.

Welcoming the Raymond team to Godrej and sharing

perspectives on the significant opportunities we see ahead.

25
 What could have
been better
Indonesia had a disappointing year. Value management, which has impacted the It is critical that we are able to drive
(excluding the Hygiene business) and bottom line by over 100 bps this year. category adoption and penetration for long-
EBITDA growth was weak. However, This will be a key area of focus for the term sustainable growth. Performance has
with trade and inventory issues behind team, along with projects to simplify how now picked up and continues to improve,
us and investments in a new General we do business. with growth in the teens in the fourth
Trade structure and media, I am hopeful quarter. The new launches of Goodknight
for a good year ahead. While our Africa Household Insecticides, our biggest Mini Liquid Vapouriser and HIT No-gas
business continued with its positive topline category, did not meet our growth Spray, aimed at democratising mosquito
trajectory, we need to improve forex aspirations. repellents, are being received well.

What went well

Despite all the macroeconomic Brand building requires investments, and One way we do is through the creation of
uncertainty, your company delivered on we are being deliberate about continuing value packs, like with Godrej Expert Rich
a lot of what we set out to do. It was a to make these investments for the longer Crème, where the smaller pack is priced at
year of two halves, with progressively term. Despite the hyperinflation this year, ₹15.
stronger performance each quarter and we increased media investments by 40% and
closing with a strong fourth quarter. invested in market development. The results We are using educative, door-to-door
We made good progress against some are very encouraging and our share of voice product sampling to better understand
of the key priorities we had outlined. in India has increased by over 1,400 bps in consumer perception of our brands and
On the category front, Personal Care in the last 3 years. use this to enhance existing products and
India grew by 19%, continuing its solid develop new ones. We covered 3 million
trajectory. From a geography perspective, Ensuring that we continue to make our households in India last year, with a plan to
our India and Africa operations delivered products affordable and accessible is critical. ramp this up to 6 million next year.
healthy double-digit growth.

Our big hits were in Hair Colour and

Air Fresheners in India, the FMCG
business in Africa, and inventory and cost
management. Consolidated inventory
reduced by 21 days and we delivered
150 bps of controllable cost savings.
Consequently, it was a record year in
terms of cash flow from operations.

On the category front, our

big hits were in Hair Colour
and Air Freshners in India.
26
What do we
need to do now?
Our leadership team is driving a very clear We recognise that shifts must happen Representation in senior leadership roles has
focus on our strategy and the double- across levels. When Shalini Puchalapalli, increased from 33% in fiscal year 2021-22 to
digit volume growth ambition we have Senior Director - Country Head for Google 40% in fiscal year 2022-23.
set ourselves. We will focus on scaling up Customer Solutions, joins the GCPL Board
Household Insecticides performance and of Directors in November 2023, she will Over the years, we have introduced various
the growth of the Indonesia business. be the sixth woman director on the Board, policy changes to become more inclusive for
Margins and forex management will be taking women representation to 50%. I our LGBTQ+ colleagues, but the translation
the focus in Africa. Through the use of am very proud of this important step in from advocacy into hiring remains slow.
digital technology and automation, we are our journey to ensure equitable gender
reimagining and radically simplifying how representation at the most senior levels of Sustainability is core to our strategy and
we work. The aim is to become leaner and leadership. Women represent 47% of our operating model and we are embedding it
to create the cost efficiencies needed to total workforce at GCPL, but only 25% of across various aspects of our business. Our
fuel our growth strategy. senior leadership. We are making targeted sustainability vision, roadmap, and action
efforts to take this up to 30% in senior plan for 2025, which is overseen by the ESG
We are committed to delivering business leadership in the next few years through Committee at our Board of Directors, is
growth while becoming more sustainable various hiring and development initiatives. aligned with the World Business Council for
and inclusive in our approach. Sustainable Development’s 9 pathways for
Given the nature of our business in Africa, the sustainable transformation of businesses.
Grooming women leaders and ensuring building representation of local ethnic These pathways, in turn, tie in with the UN’s
adequate representation continues to be a talent in management and key functions Sustainable Development Goals which are
key priority. We have set specific goals and is critical. We have 90% representation in aimed at helping solve ‘wicked’ social and
regularly review progress, while ensuring Marketing, 71% in Finance, and 76% in environmental problems.
we make the necessary changes to support Manufacturing.
women at the workplace.

Shalini Puchalapalli, Senior Director - Country Head for Google Customer

Solutions, who joins the GCPL Board of Directors in November 2023, will be the
sixth woman director on the Board, taking our women representation to 50%.

27
 As part of our CSR initiatives, we We ensured over 2,300 MT of waste has With the launch of Magic Body Wash, our
continued to scale up our Elimination been recycled over the past year, partnered reconstitution portfolio is growing. We
of Mosquito Borne Endemic Diseases with local authorities to strengthen waste believe this portfolio will enable us to
(EMBED) programme in partnership with management systems, and invested in the democratise access to health and hygiene
the governments of Madhya Pradesh, well-being of waste workers. products while also and importantly,
Uttar Pradesh, and Chhattisgarh. Since offering a green discount to our consumers.
2015 we have helped make 1,598 villages I am particularly energised by our recently
malaria-free, and are now also addressing articulated ambition to be net zero by
dengue and chikungunya in 9 cities. We 2035. It reinforces our commitment to
have scaled up our waste management putting people and planet alongside profit.
and plastics programmes to 5 cities.

Manch, our employee resource group for

women in sales roles in India, leverages
the power of collective action to help
make our workforce more inclusive.

28
Our product, design, and sustainability On behalf of the GCPL Board and To all our customers, business partners,
teams continue to work closely on a Management Committee, I want to take shareholders, investors, and communities,
sustainability framework for developing this opportunity to say a very special thank our deep gratitude for your support
new products that are greener across you to our incredible team members; for through the years. We will continue to
the value chain. We remain agile to the their passion and leadership, which allows count on your partnership as we take GCPL
changing global context of sustainability, us to build a more purposeful GCPL. to a new level of ambition and achievement.
increasing stakeholder interest, and
growing internal ambition.

Nisaba Godrej

We continue to scale up EMBED in

partnership with the governments of
Madhya Pradesh, Uttar Pradesh, and
Chhattisgarh, and since 2015 we have
helped make 1,598 villages malaria-free.

29
30
In conversation
with our Managing
Director and CEO,
Sudhir Sitapati

Share with us your reflections on

how GCPL performed in fiscal year
2022-23, against the backdrop of
the global macroeconomic and
political crises.
In December 2021, we articulated our strategy, which is to focus on category
development driven by product innovation, relevance building, creating access and
marketing investments; and to fund it through a digitally enabled radical simplification
of our company. We will do this while continuing to live our values and place our
people and the planet alongside profits. Our measure of medium-term success is the
double-digit volume growth ambition we have set for ourselves.

How does this translate for our business in the short term? Our strategy led to a plan
for fiscal year 2022-23 that we crafted back in January 2022. We were already on a
high inflationary wicket at that point and our aim was to bring the business back to at
least moderate volume growth, ensure reasonable price growth, good gross margin
improvement, and moderate EBITDA growth, given increased media investments.

Then, in February 2022, the Ukraine war unfolded into what has been a classic black
swan event. In a situation like this, it isn’t just the volatility that hits, there is also the
fact that you just don’t know how to respond. We couldn’t have predicted back then
just how long or far reaching the impact would be.

31
 The GCPL strategic narrative, which links our purpose, vision, strategy,
and operating philosophy, guides our choices and ways of working

OUR Bringing the goodness OUR

of health and beauty
PURPOSE to consumers in
VALUES
emerging markets

OUR OUR
VISION STRATEGY
Delight Category develop
2 billion existing portfolio

consumers
by 2027

Funded by radical
simplification

OUR OPERATING
People and Planet
PHILOSOPHY alongside Profit

Less is more; Consumer

1 Much less is 2 first, Business
much more second

3 Think local, 4 Tomorrow

Act global before today
THE A manual prescriptive guideline to
help in our day-to-day operations
5 Better from within, Different from outside GCPL The bedrock of our capability
WAY development programme

OUR 1
10%
2
More spends on
3 More automation, 4 More diversity,

MEASURES
UVG brands, Less on Less working Less environmental
cost to serve capital impact

32
Sharing our purpose and strategy with our Indonesia team at a town
hall when our global management committee visited Jakarta

33
 The question we asked ourselves as a So, in a year of hyperinflation, we increased Simplification in a time of volatility has
leadership team was: We have just crafted media investments by 40% and invested in consequences, so we shifted the focal
our plans for the year. How do we face market development. We took hard calls on metrics from margins to cash flow from
this black swan event? simplifying our business. Take inventory for operations. We knew that it would be
example. Consolidated inventory reduced difficult to get the margins we were aiming
The answer ended up being simple. We by 21 days, and in our Indonesia business, for with the kind of costs and pressures
stick to our strategy, because this isn’t a Modern Trade channel inventory reduced underway. Given these choices, it ended
strategy for the next 6 months or even a by 24 days. Similarly, for other aspects like up being a year of two halves and we saw
year. We believe it will hold for the next new product development or people and progressively stronger performance each
couple of decades. Like we have since efficiencies. quarter, closing out with a very strong fourth
learned, it’s not strategy unless it tests quarter. It was a record year in terms of cash
your resolve. flow from operations, something that was in
the making for a few quarters.

How do you deal with a black swan event?

You stick to the strategy

34
In the fourth quarter in India, our India We feel much more confident about
branded business delivered strong growth the improvement we are seeing in our
of 16%, with Household Insecticides core business in Indonesia. Sales growth
growing at 14%. It was heartening that excluding Hygiene in the fourth quarter
much of this broad-based sales growth was at 11% in constant currency terms and
came from volume growth (13% underlying EBITDA margins are now at 21.5%. While
volume growth) and that categories like Africa had a slightly slower close to the year
Hair Colour and Air Care have delivered at 8% sales growth, it has been largely due
explosive growth. Profitability also to demonetisation in Nigeria, and we do
increased sharply with gross margins of not see this impacting performance going
56.2% and EBITDA margins of 26.6%. This forward, which has otherwise been quite
is despite a 51% increase in media spends. strong.

Sharing my reflections on our strategy and

performance at our Annual Analyst Meet in Mumbai

35
 You have said that category development
is at the heart of your strategy.
Why is this so important and what
progress have you made on this journey?

Category development is about driving Our category development playbook And the third, is creating access. One of
relevance for a category—why people has three key levers. The first, is building our biggest successes recently is the ₹15
should adopt the category. It is different relevance. Let’s look at Air Care, where Godrej Expert Rich Crème hair colour in a
from gaining market share. Here, you are we have gained market share and grown sachet in India, which provided a fillip to a
basically marketing the category and not penetration. The insight we worked on is category that had somewhat slowed down
just the brand. Our vision is to delight 2 that this category is typically adopted when pace and is now back to galloping. In
billion consumers globally by 2027, and guests come home. Guests are also likely February, we introduced two innovations
category development will power that. to gossip about you when your back is in Household Insecticides, Goodknight
If you look at the key markets that we turned, and this comes together in the idea Mini Liquid Vapouriser and HIT No-gas
operate in—India, Indonesia, Nigeria, of ‘talking rooms’ which are featured in the Spray, aimed at democratising mosquito
Bangladesh, they are all at the cusp of campaigns in India and Indonesia. repellents and creating access for the
explosive Home and Personal Care growth. category in India.
The categories we operate in are still The second, is investing in our brands.
underdeveloped and while the reason for We deliberately chose to increase our
that is in part, the income and spending investments in brand building last year
power of people in these economies, it is at a time when others were reducing it.
also about what companies like ours do to Consequently, our share of voice in India
develop these categories. has increased by over 1,400 bps in the last
2 years.

Our Stella brand in Indonesia builds on the insight of

Air Care being adopted when guests visit your home

36
We are ramping up distribution. In our new We continue to scale our internal capabilities As we centralise and leverage synergies
FMCG business in Africa for example, we for market development. The work on our for R&D and marketing, we are also setting
have increased direct coverage by 1.8x in global categories of Household Insecticides, up Godrej International, a dedicated team
Nigeria and 2x in Kenya over the last year. Hair Colour, and Air Care is spearhead to scale up global exports and serve world
In India and Indonesia, we are building by a best-in-class Global Category and class product mixes. We have consolidated
strong internal capabilities in household Innovation team, which is mining and small country operations, both flag and
sampling and putting the necessary testing centralised strategies on product distributor models, with the intent to
enablers in place to grow this. Last year, development, innovation, and brand expand to over 120 countries and double
we sampled 3 million households in India communication. For our Goodknight brand the business in 3 years (~USD 70 million in
and we plan to sample 6 million in the for example, we have the same relevant fiscal year 2022-23).
year ahead in India and another 3 million insight across India, Indonesia, and Nigeria,
in Indonesia. In India, we have also started of mothers being afraid of mosquitos
focusing on rural wall painting to reach disturbing their children’s sleep and yet
media dark consumers and consumers who worried about using a product like coils. We
are otherwise difficult to reach through tested the same creative idea across these
traditional media channels. markets and it has worked well.

We tested Goodnight Liquid Vapourier advertisements

with the same creative idea for the first time in India,
Indonesia, and Nigeria and they were very well received

37
 How are you going about ‘radical simplification’
as you call it, to reduce controllable costs and
fund category development?

Our game plan is to fuel category was a difficult year, the team moved with The other area that we are simplifying
development by simplifying our operations admirable speed and boldness to shift to a is supply chain and we are doing this
and cutting down on what we call distribution system which is similar to what by consolidating manufacturing. We
‘controllable costs’ (costs which consumers we have in India. are seeing explosive wet hair growth
don’t see), and investing that in costs that in Africa, so we want to shift more
consumers do see, like material costs and In a similar vein, in Nigeria and West of our manufacturing base from
media, and some parts of distribution costs. Africa, under the guidance of Dharnesh the USA into Nigeria, where we are
Gordhon, CEO of our Godrej Africa, USA already manufacturing some of these
A good example of how we are doing this and Middle East business, we are exiting products. This should result in lower net
is in our Indonesia business, where we direct distribution and will move to a manufacturing cost and simplify our USA
simplified our sales and distribution system, single distribution partner. In Nigeria, this business to a marketing and distribution
moving from a three-tier distribution system has doubled the number of outlets we focused business. The higher US dollar
to a two-tier one in 4 months. Roughly reach overnight, increased our warehouse availability in Nigeria will also help lower
30% of our sales would come from direct footprint from the one we had to 23, forex expenses.
distribution through 60,000 outlets, in a reduced lead times by 4x, and offered
system which had heavy overheads and better working capital management. While
high-cost operations. Rajesh Sethuraman, this may not be cost dilutive in the short
our new CEO for the business, took a call run, it will certainly be growth accretive. We
shortly after joining to change this. In what are reasonably certain that in a year this will
be margin accretive.

Rajesh Sethuraman and our Godrej Indonesia team led a bold

simplification of our sales and distribution system, moving from
a three-tier distribution system to a two-tier one in 4 months

38
We are working on various ways to In line with our shift to lighter
integrate technology in decision making manufacturing and distribution models,
and simplify how we do business; moving to we are also creating global shared services
algorithms over judgement as an approach in finance, supply chain, human resources
for greater accuracy. I am particularly happy and global exports, allowing us to
about media planning and how we have leverage synergies of scale and expertise.
shifted to running media on an algorithmic
model, focused on minimising cost per We are starting to see the results of some
reach and cost per incremental reach. In of these initiatives, and in fiscal year 2022-
financial forecasting we are finding a top- 23 we clocked controllable cost savings of
down financial forecasting model far more 150 bps.
accurate than the bottom-up approach we
had been using.

In Nigeria, we are shifting our distribution

model to partner with a single large national
distributor and capitalise on their reach

39
 How is GCPL refreshing its approach to
people and personal growth to continue to
attract and develop top talent globally?

We have a fantastic team; highly driven, We have been thinking quite deeply about We are setting the bar unrelentingly high
capable, and most of all, people who truly the importance of nurturing leaders who on talent; ensuring that top talent has
live the Godrej way. Our global leadership fundamentally connect with our purpose at richer, more meaningful jobs, with market-
team has spent a large part of the year GCPL and helping them to think through leading opportunities for value creation
travelling across various countries to how to create a tangible legacy and impact through our performance-linked rewards
spend time with our people, learn from in the roles that they serve. In April this schemes. We have found listening to the
insights and drive change. We have enjoyed year, along with the time we typically spend wisdom of crowds also very valuable to
travelling together as a team a few times discussing annual plans, we spent a day hire the right talent from outside Godrej,
a year, spending time on our collective with 60 of our most senior leaders from and, in what has made me particularly
reflections and leadership approach, and across the globe to reflect on and craft our happy, re-hire great talent back.
working with the local teams to ideate and personal leadership stories, anchored to our
problem solve. We spent time in Jakarta role of enabling GCPL to live its purpose.
in August, in Kenya in December, and in Listening to people share that day really
Mumbai in April. reinforced my belief in the potential we
have to build on, and the gratitude to be
part of this journey.

Crafting and sharing our leadership I enjoy the time I get to spend in conversation with our
stories at the GCPL Global interns and younger team members; they can really
Leadership Meet in Mumbai push the boundaries on how we are thinking

40
Developing best-in-class functional journeys for key individuals and cohorts, improved this over the last few years.
expertise is a critical imperative and I am where we are leveraging multidisciplinary Women representation continues to be a
personally overseeing a lot of the work elements for immersive experiences. focus globally. One of the challenges we
in this area. We have set up the Business face is representation in functions like Sales
Learning Academy to facilitate functional Being diverse and inclusive is core to who and Manufacturing in India where women
learning by building programmes, products, we are at Godrej and we are committed are typically under-represented in the
technologies and mechanisms that make to exploring how we can build more workforce. Through Aarambh, a focused
delivery of results fast and effective. The equitable opportunities. In India, we are initiative to hire women for entry-level sales
bedrock of this functional learning is what experimenting with Project NEO. Designed roles in India, our team aims to double the
we call the ‘GCPL Codebooks’, a set of as an alternative hiring pathway for people number of women in Sales in India to 100
codified principles which detail the GCPL from diverse work backgrounds, NEO in the next 2 years. Our leadership team
‘Beliefs’ and ‘Actions’ in a series of key attracted over 6,500 applications last year, continues to be responsible for making
functional areas. This has been put together and offered learning and insights into how this change possible by deepening their
by functional experts from across our teams we can rethink our hiring approach. We will commitment to become better allies to
and in action, is streamlining our ways of take it global now. In our Africa business, under-represented groups in our teams and
working globally. This is complemented scaling the representation of local talent in the industry at large.
by customised leadership development management is key and we have steadily

Cascading the GCPL Codebooks and

ways of working across our teams;
sharing perspectives and best practices

41
 The World Economic Forum’s Global Risks Report 2023
has featured the failure to mitigate climate change in
the top 5 risks both for the short-term and the long-
term. Where is GCPL in its climate change journey and
what are your future ESG ambitions?
Climate and environmental risks are slowly We are tracking these risks closely and We recognise that climate change and
moving from being a distant possibility to developing robust mitigation strategies. nature loss, especially water loss, are
becoming a pressing reality. Impacts of closely linked. These issues collectively
climate change on the global economy are There is more ground for us to cover and threaten food security, livelihoods, and
still undervalued, and our preparedness to so, we are stepping up our commitments. amplify the impacts of natural disasters.
tackle them will be a critical differentiating We have set science-based targets in To address this, we have invested in
factor. line with the initiative to help limit global afforestation programmes and carbon
warming Well Below 2 Degrees Scenario. sequestration initiatives within our
At GCPL, we have taken concerted While these goals are ambitious, we have watershed projects. This not only helps
steps to comprehend the financial and seen progress. Over 31% of our energy is conserve water and store carbon, but
physical impacts of climate change on sourced from renewables and our emission also revitalises ecosystems, preserves
our operations. Following a meticulous intensity has reduced by nearly half from biodiversity and improves livelihoods
climate risks scenario analysis based on 2010. We have also set a Scope 1 and 2 net for local communities. Our watershed
the Task Force on Climate-related Financial zero commitment by 2035 that is crafted initiative recharges over six times the
Disclosures (TCFD) recommendations, we on a science-based approach. Additionally, water we use at GCPL.
have integrated climate-related risks into we maintain a steadfast commitment to
our enterprise risk management strategy. sending zero waste to landfills.

42
Product innovation is another area of focus. Our sustainable efforts also extend to our our innovative, eco-friendly products at
We aspire to delight our customers with suppliers. The regular assessment of the a green discount, not a premium, making
new ranges of products at a green discount. ESG performance of our suppliers, sharing sustainable choices more appealing and
Our reconstituted product portfolio is a industry best practices, and capacity affordable. Our ESG ambitions are shaped
good example. Our Magic handwash and building are core aspects of our Sustainable by the belief that every step we take
Magic bodywash products are in a powder- Supply Chain Policy. towards sustainability today will pave the
to-liquid or liquid concentrate format way for a more inclusive and greener world
This innovation reduces transportation We want to break the stereotype that eco- tomorrow.
weight, resulting in lower fuel consumption friendly products and packaging cater only
and decreased emissions. Moreover, our to a niche market. We strongly believe in
reconstituted products require 84% less making sustainable products accessible to
plastic packaging, further reducing waste everyone. So, we are committed to pricing
and aiding in building a more sustainable
supply chain.

Our reconstituted product portfolio of Magic handwash

and bodywash require 84% less plastic packaging and
help build a more sustainable supply chain

43
 Several recent investor surveys indicate that
environmental and governance issues often take
precedence over social issues in ESG investment
considerations. How is GCPL ensuring that aspects of
human rights and CSR are not overlooked?
At GCPL, we firmly believe that Our Audit teams continually monitor our Our CSR initiatives have been equally
environmental and governance issues compliance, while our HR supports this impactful and the EMBED (Elimination
cannot eclipse the importance of social initiative across all levels. of Mosquito Borne Endemic Diseases)
concerns within ESG considerations. programme being a good example. Since
Upholding human rights and fulfilling our In fiscal year 2022-23, we took proactive 2016, EMBED has been supporting the
Corporate Social Responsibility (CSR) is at measures to further embed this Government of India’s mission to eliminate
the heart of our ethos. commitment in our company culture. We malaria by 2030. Despite being preventable,
conducted a thorough self-assessment malaria continues to be a significant health
We have devised a multi-pronged at our plants and locations in India and burden in India, accounting for 85% of the
systemic strategy to ensure the Indonesia, covering 93% of our blue malaria cases in Southeast Asia.
comprehensive integration of human collar workforce. Any identified gaps
rights throughout our business. This were immediately addressed, with steps EMBED has made a difference in the lives
starts with the GCPL Board of Directors taken to fortify labour contracts for of over 28.2 million people at high risk for
providing oversight and trickles down to contract workers in India. malaria. These individuals, most of whom
implementation by the Operations teams. reside in disadvantaged and hard-to-reach

Project EMBED has made a difference in the lives of over

28.2 million people at high risk for malaria

44
communities, have directly benefited from to the communities we operate in. Our Going forward, our key leaders, including
our initiative. In our rural malaria project approach extends beyond compliance myself, will have specific ESG-linked goals
alone, we have achieved the target of with Indian EPR laws to collect 100% of in our annual plans. Performance against
zero malaria cases in 4 out of 9 districts. the plastic waste we generate annually. these goals will impact our variable pay.
Moreover, the expansion of EMBED to an In line with the principles of a circular We believe that leading by example will
urban dengue programme in 9 Indian cities economy, we are supporting communities help foster a culture of accountability and
has shown a promising reduction in dengue around our offices and plants to manage commitment towards our ESG ambitions.
cases by 36%. their solid waste. Our partnerships with 5
municipal corporations in India have led
Beyond public health, we also acknowledge to the establishment of scientific waste
our role in community waste management. management systems. As a result, we
As a global FMCG company, we are have successfully diverted over 2,300
committed to reducing waste across our MT of waste from landfills in fiscal year
value chain and contributing positively 2022-23.

Through our various initiatives we have successfully diverted

over 2,300 MT of waste from landfills in fiscal year 2022-23

45
 Managem
Discussion
and Analys

46
ment
on
lysis
Our Business Model 48

Risk Management 50

Other Disclosures 66

Our Strategic Pillars 68

47
 Our
Business Model
Inputs Business Process

Financial Capital PURPOSE To bring the goodness of health and

• Equity
beauty to consumers in emerging markets
• Increased spends on brands
• Investment in assets
VALUES • Trust • Own It
• Be Bold • Be Humble
• Create Delight • Show Respect

VISION

Manufactured Capital Delighting 2 billion

• Five manufactuing clusters across 9 countries consumers by 2027
• Agile manufacturing through smart automation
and Internet of Things (IoT)
• Investments in green manufacturing

Intellectual Capital
• Strong legacy of the Godrej Group and
portfolio of brands
• Unique consumer insights through advanced
predictive analytics
• Investments in R&D
STRATEGY

Category develop Double-digit volume growth

Human Capital existing portfolio More spends on brands
• Over 13,000 team members across
geographies Funded by radical More automation
• Investments in training and simplification SKU rationalisation
development and health and safety
People and planet More diversity
alongside profit Less environmental impact

Social and Relationship Capital

• Doubled down efforts to improve distribution
• Global network of suppliers OPERATING PHILOSOPHY
• Investments in CSR and community initiatives
1 Less is more; 2 Consumer 3 Think local,
Much less is first, Business Act global
Natural Capital
much more second
• Sourcing and investment in raw materials
and resources for our products
• Investments in green supply chain products 4 Tomorrow 5 Better from within,
• Lifecycle assessments of our products and before today Different from outside
investments in greener products

48
 Outputs Outcomes

Leadership positions (market

share) across geographies,
Financial ₹13,199 crore 44% revenue 13.34% category penetration, and
Capital Return on equity
Consolidated From international consumption rate
revenue businesses

96.91% 5-13% ₹ 2.4 crore

Exponential growth in our
Stock availability Increase in OEE Saved through e-commerce business
Manufactured in India (Overall Equipment green manufacturing
Capital Effectiveness) scores initiatives

#1 33% 11
Brand position across Growth in Brands over
Intellectual Household Insecticides, e-commerce ₹200 crore
Capital Air Care, and Hair Colour business

5.72 47% 0 93%

Human capital Gender Fatalities Blue collar workforce Enhanced long-term value
return on diversity in India and Indonesia
Human
investment assessed for Human
for all stakeholders, including
Capital
Rights shareholders, customers,
consumers, suppliers, distributors,
28.2 million 1,598 retailers, and the community
People reached through rural malaria Malaria-free
Social and and urban dengue programmes villages
Relationship
Capital

71% 48% 31.6%

Suppliers by revenue Reduction in emission Energy from
Natural assessed for supply intensity renewable sources
Reduced waste to landfill,
Capital chain sustainability GHG emissions, and
water consumption
2,321 MT 17% 6x
Waste diverted from Reduction in plastic Water positive
landfill through CSR packaging intensity
projects

49
 Risk Management

At GCPL, we have a comprehensive and Structure of the Executive

structured approach to risk management. Risk Management Committee
Across our geographies, we have integrated
our approach to risk management into the
operating framework and reporting channels
of our business. Starting with a Board-level
oversight to a dedicated Risk Management
Committee and a cross-functional team
within the business, we routinely assess risks
across the company and all geographies.

Executive Risk Management Committee

The Executive Risk Management
Committee (ERMC) ensures that we follow
a structured risk management process. This
committee is entrusted with the crucial
task of risk identification, assessment, and
mitigation for our company across various
domains, including strategic, material,
operational, transitional, technological, and
environmental.

The ERMC shoulders the comprehensive

responsibility of monitoring the company’s
risk landscape and managing it effectively
to ensure a robust and thriving business.
This committee remains steadfast in its
commitment to uphold transparency and
safeguard the interests of the company and
its stakeholders.

50
Based on the recommendations of the Approach
Managing Director and CEO or the Chief
Financial Officer, the ERMC may nominate
or invite additional members/directors, as We take a proactive approach to risk For each material and emerging risk,
required, to participate in specific meetings. management, wherein an annual risk the combined outcomes of the existing
identification and assessment process management strategies and identified
The Secretary to the ERMC is the highest- is incorporated in line with our strategic improvement opportunities are
ranking person with a dedicated risk business planning and annual business documented in a formal risk management
management responsibility at operational planning initiatives. plan. Subsequently, the assessment of
and performance levels. The Secretary prioritised risks and their mitigation
acts as a Chief Risk Officer and oversees The annual business plan is a foundation strategies is presented to the Board Risk
the functioning of the risk management for identifying and prioritising risks. Management Committee for evaluation
process. The Secretary must ensure that Following prioritisation, a risk competency and review.
the ERMC meetings are held half-yearly or scan is conducted to determine existing
more frequently, if required. management strategies that effectively The risk assessment function is structurally
address material and emerging risks to our independent of business and is overseen
business. This scanning process helps in and coordinated by the Secretary to the
pinpointing opportunities for enhancing risk ERMC. The risk assessment outcomes fall
mitigation. under the ownership of the respective
business function heads. This collaborative
approach ensures a comprehensive and
efficient risk management strategy across
the organisation.

Risk management approach

IDENTIFY PRIORITISE MITIGATE MONITOR

Collate a laundry Prioritise basis risk score Prepare mitigation plans, Monitor and share periodic
list of risks (probability and severity), assign responsibilities, updates with the Risk
consider inherent risks consider residual risks Management Committee

Risk inventory Material and Mitigation Monitoring and

emerging risks plans and KPIs adding new risks

51
 Risk review

Risk owners are appointed for material The ERMC is responsible for: New managers are inducted on Enterprise
and emerging risks. These risk owners Risk Management training, which is
assess, manage, evaluate, and monitor the • Half-yearly reports to the Audit organised quarterly. They are trained on
risks and propose the risk mitigation plan. Committee and Risk Management inputs on risk definition, identification,
The implementation of the risk mitigation Committee rating, classification, prioritisation,
action plan is agreed upon by the ERMC • Half-yearly review of the risk mitigation mitigation, control, and review. Across all
and Board Committees, and any deviations status for material and emerging risks manufacturing facilities, we also conduct
are discussed with the function heads and • Annual assessment of risks in line with workshops on occupational health and
Managing Director and CEO. business/strategic planning safety risks and management throughout
the year, encompassing over 100% of our
The risk owners may change over time, manufacturing plant workforce.
depending on their changing roles and
responsibilities within the organisation. Risk culture Our employees are encouraged to share
feedback for continuous improvement
On a half-yearly basis, the risk owner in risk management practices. A formal
formally reports about risk management Employees across all levels and annual NPS survey is conducted across the
within their area of operation at the ERMC geographies have risks as part of their company for all functions. Risk management
meetings. This reporting is aimed at individual goals and performance review. is a part of that survey, and the feedback
assessing how well material risks are being These risks range from measures to helps us improve our processes and
managed and if any additional risk has reduce occupational health and safety systems.
emerged that can adversely affect business incidents, adherence to regulations and

operations. The risk report includes: compliance, financial forecasting to An annual InTune survey is also conducted
reduction of volatile forex exposure. The across the company seeking suggestions
• Performance of the function risk goal weightage for employees ranges and feedback from all employees.
in managing its material risks, from 30% to 60% and is a part of their Moreover, emerging risks and development
considering the mitigation strategies half-yearly HR employee performance of mitigation measures are discussed in
• Identification of any additional review. Compliance and quality risk regularly conducted departmental monthly
emerging risks assessments are a part of our new product review meetings. The line manager records
• Definitions of the mitigation strategy development (NPD) process, and the valid risks identified by team members
for the new material risks goal is aligned with the key performance and communicates them to the Risk
indicators of R&D team members involved Management Committee for further action.
The results of this report are coordinated in NPDs. At the plant level, we have a mobile app
by the Secretary to the ERMC and are to identify occupational health and safety
made available for review by the ERMC. risks. These risks are tracked, reviewed, and
The Secretary submits a half-yearly report mitigated through the app.
on risk management for review and
appraisal of the ERMC. In addition, every 6
months, based on a pre-specified calendar,
a risk owner would formally present the
risk management initiatives and status of
their area of operation to the ERMC

52
Risk management

Risk category Risks description Risk mitigation Priority

Financial Forex At GCPL, the forex policy is determined

Unfavourable fluctuations in the by a dedicated Forex Committee. This
currency and/or open exposures committee monitors all exposures and
guides decisions on open exposures and High
could put pressure on the cash flow
and margins. hedging. The committee meets monthly
and provides quarterly reports to the
Board on forex exposures.

Supply chain Commodity price volatility Our primary commitment remains to serve
Our supply chain faces the challenges of the needs of our consumers above all else.
unexpected and cyclic fluctuations in input In challenging times, we continue to work
in their best interest and have passed on High
costs and commodity pricing pressures,
specifically concerning commodities such only a fraction of the increased input costs
as palm and crude oil. The recent Russia- to them. Additionally, we have consistently
Ukraine conflict has had a significant impact maintained the quality standards of our
on global oil and natural gas trading and products, refusing to compromise on
transportation, further exacerbating the quality in the face of rising input costs.
situation.
To further mitigate this risk, we are actively
working to secure high-quality palm oil
from various regions and geographies,
thereby reducing our dependency on
major palm oil markets.

Operational Occupational health and safety This is a high-priority area for us. We have
Physical risk to the workforce in a dedicated Human Rights Policy, strong
manufacturing operations and frontline standard operating procedures to ensure
the highest adherence to health and High
distribution teams; risk of appropriate
handling, training, and safely disposing of safety, and a governance mechanism to
waste; risks of unrest due to incidents in ensure any incidents are duly investigated
both the workforce and local communities and resolved for the future. We ensure
that they are from. a periodic review of safety procedures,
and the Central Safety Committee and
committees at plants review monthly data
for occupational health and safety.

53
 Risks category Risks description Risk mitigation Priority

Economic Hyperinflation and We are strategically utilising our

currency devaluation manufacturing capabilities and human

Hyperinflationary pressures pose significant resources in regions experiencing

hyperinflation to lower our production Medium
challenges, disproportionately affecting
those with limited financial means. The costs. Simultaneously, we are investing

instability of local currencies in regions in local procurement initiatives to reduce

where we operate results in an increasing reliance on imports and minimise the

number of vulnerable individuals being impact of global supply chain disruptions.

priced out of access to necessities. By supporting the local economy, we

aim to foster economic stability and
contribute to the well-being of the
communities we serve.

Financial Changing consumer preferences We have conducted Life Cycle Assessment

The move towards natural and sustainable of more than 50% of our products (with
options with an emphasis on the entire a plan to cover 80% by 2025) to assess
where in the value chain can our products Medium
value chain being sustainable.
be more sustainable on all environmental
fronts: energy, water, plastic, and
waste. We are working on the findings
of the reports to make our products
demonstrably greener.

A great example of our green product

is our innovative powder-to-liquid
Magic handwash. It is the world’s most
affordable handwash. It uses half the
plastic packaging compared to a regular
handwash refill and only a quarter of
the fuel to be transported. We are also
working, finding, and testing alternate
packaging materials and increasing the use
of post-consumer recycled plastic to move
away from virgin plastic.

54
Risks category Risks description Risk mitigation Priority

Regulatory Evolving regulations We have the highest levels of statutory

Stringent regulations/ban limiting the compliance and ensure all regulations
use of some ingredients or packaging and laws of the land are adhered to. We
have an internal system called Legatrix Low
materials such as plastic. Evolving
regulations on carbon pricing, ESG that helps all manufacturing units monitor
disclosures, and other government- adherence to compliance and regulations.
mandated disclosures on ESG issues. It enables management with a one-stop
view of the organisation’s compliances and
control mechanism through comprehensive
compliance dashboards and provides
necessary information at the operating
level by creating a comprehensive matrix
on laws and their management.

Further, our Corporate Affairs, Legal,

and Audit teams are consistently
communicating with key government
departments and industry bodies to track
new and emerging regulations. They
routinely assess and analyse regulations to
evaluate how these will impact business
and mitigation for the same.

55
 Emerging risks
1. Climate change

Climate change is a critical challenge achieved by conducting education and Mitigation action
facing our planet, with its impact already outreach programmes, as well as through
being felt worldwide. Businesses and public-private partnerships that bring We have conducted a risk assessment
economies are particularly vulnerable together businesses, governments, and based on the recommendations of TCFD to
to climate-related risks, such as supply civil society organisations to work towards identify climate-related risks and develop
chain disruptions, increased insurance a shared goal. Overall, addressing climate effective strategies for their long-term
premiums, and regulatory penalties. Our change requires a multifaceted approach mitigation. Furthermore, we have optimised
largest pool of consumers are in tropical that integrates technology, the economy our processes to reduce our carbon
countries such as India, Indonesia, and and society. By collaborating, we can build footprint and work towards achieving our
Africa, and all of these countries are a more sustainable and resilient tomorrow goal of net zero emissions.
witnessing significant impacts of climate for ourselves and future generations.
change—unpredictable weather and
scanty or excessive rainfall.

To address this challenge, a collaborative Impact of climate change risk

effort is required from all stakeholders,
including businesses, policymakers, By conducting a thorough scenario analysis
and society at large. We need to work using the Task Force on Climate-related
together to transition to a low-carbon Financial Disclosures (TCFD) framework, We support TCFD and have recently concluded
future by integrating technology, the we have determined that the potential a climate-related risks assessment
economy, and society. ramifications of climate change will be
particularly pronounced in our operational
Technological advancements in renewable locations at Karaikal, Katha, and Guwahati.
energy, energy efficiency, and carbon This analysis was conducted by examining
capture and storage are essential for key parameters such as temperature, water
reducing our reliance on fossil fuels scarcity, and precipitation, all of which will
and mitigating the impacts of climate have a crucial role in shaping the impact of
change. However, technology alone is climate change on our business.
not sufficient. Policies and regulations
that incentivise sustainable practices Our analysis was conducted within the
and reduce carbon footprint are also context of two Shared Socioeconomic
necessary, such as carbon pricing, Pathways (SSPs), namely SSP-1 and SSP-5.
renewable energy mandates, and building By considering both scenarios, we could
codes that promote energy efficiency. fully explore the range of potential climate
change-associated outcomes and gain a
Raising awareness and engaging society comprehensive understanding of how our
at large in this transition to a low-carbon business may be affected.
future are also critical. This can be

56
2. Cybersecurity risk

Cybersecurity refers to the protection of 4. A cybersecurity breach can result in Further mitigation measures include
computer systems, networks, and electronic legal liability if the company is found advanced web security for work-from-home
data from theft, damage, or unauthorised to be negligent in protecting customer scenarios, perimeter intrusion prevention,
access. As FMCG companies are becoming data or if it violates data protection perimeter firewalls, application firewalls,
increasingly dependent on digital regulations. internal firewalls, and advanced server
technology and online platforms, they 5. GCPL relies on proprietary technology, security.
are increasingly being exposed to cyber manufacturing processes, and recipes
threats, which has made cybersecurity an to differentiate their products from We have crafted a robust Information
emerging risk. competitors. A cybersecurity breach Security Policy based on risk approach that
can result in the theft of valuable implements, operates, monitors, reviews,
We often store large amounts of sensitive intellectual property. maintains, and improves our information
data, including financial information, security. It encompasses people, process,
customer data, and proprietary technology. and technology.
We also rely on online platforms to Mitigation of risks

connect with customers and suppliers, With these advanced technologies in place,
conduct transactions, and manage their While developing robust cybersecurity our organisation can confidently navigate
supply chains. This makes us targets for strategies that incorporate risk assessment, any challenge and safeguard against
cybercriminals who seek to steal data, threat monitoring, incident response plans, potential threats, all while maintaining
disrupt operations, or extort money. and employee training, we regularly update seamless productivity and efficiency.
our cybersecurity systems and infrastructure

Cyber threats can come in many forms, such to keep up with the evolving threat

as phishing attacks, malware, ransomware, landscape. By taking proactive measures

and denial-of-service attacks. These attacks to protect our digital assets, we mitigate

can cause substantial damage to FMCG the risk of cyberattacks and safeguard

companies, including loss of revenue, their reputation and financial well-being.

damage to reputation, and legal liabilities. We have implemented a cutting-edge

disaster recovery solution that is both robust Read our Information
and fully automated, ensuring that our Security Policy
Impact of cybersecurity risk
operations remain resilient even in the face
of unforeseen disasters.
1. A cybersecurity breach can disrupt
operations, leading to delayed
We have bolstered our security measures to
shipments, lost sales, and decreased
offer enhanced protection for our endpoints,
productivity.
email and internet security, particularly in
2. A cybersecurity breach can lead to
the context of a work-from-home scenario.
financial losses due to theft of sensitive
Our teams can control, monitor, and log all
data, disruption of operations, and the
access to protected assets. We have defined
cost of repairing and recovering from
and enforced secure change control and
the attack.
configuration management processes. We
3. GCPL being customer-centric, places
have trained all our employees in incident-
a high weightage on brand reputation
handling and contingency plans.
to attract and retain customers. Our security systems are
A cybersecurity breach can erode ISO 27001:2022 certified
customer trust and damage brand
reputation.
57
 Our TCFD Report
Climate change poses severe risks to The TCFD framework recommends climate- through Integrated Annual Reports, and
the global economy, entailing adverse related financial disclosures for supporting Carbon Disclosure Project (CDP) and Dow
financial impacts to all. Climate change also enterprises in better communicating the Jones Sustainability Index (DJSI) disclosures,
brings several opportunities that entities, threats emerging from climate change and which continue to strengthen the gaps in
including organisations, can leverage. strategies to mitigate the same. These climate and water-related disclosures as
Markets, investors, and consumers disclosures provided by organisations per industry standards. We understand
require clear, comprehensive, and high- position them as market leaders through the growing importance of aligning our
quality information about these risks and effective communication to concerned disclosures to the TCFD framework. In the
opportunities to make relevant investment stakeholders and help them in strengthening current reporting cycle, we are disclosing
decisions. For a consumer goods enterprise their business strategy for efficient risk climate change-related information on
like ours, climate-related risks and mitigation and resource allocation. The climate governance; processes to identify,
opportunities majorly stem from drivers framework is structured across four assess, and manage climate change
such as a change in climate extremes, pillars, namely governance, strategy, risk risks and opportunities; strategies to
increasing frequency and severity of climate management, and metrics and targets. safeguard business performance; climate
disasters, global and national policy shift Within these four pillars, there are 11 change scenario analysis as a forward-
towards a low-carbon economy, emerging recommended disclosures. These disclosures looking business strategy; and lastly, the
technologies, and changes in consumer help investors or any other stakeholder to metrics and the targets. Details about the
perception towards carbon and water- understand how companies address climate- aforementioned disclosures are provided in
intensive products across the lifecycle. related risks and opportunities. subsequent chapters. Further, we are also in
As a company, we have regularly reported the process of publishing our first standalone
on our strategies towards climate change TCFD report.

Governance
We have a well-defined governance structure, covering the Board and management, to address emerging risks such as climate change.
The key stakeholders proactively engage and strategise on these emerging risks. The governance structure is presented in Figure 1.

The TCFD framework recommendations

Governance Risk management

Report on the organisation’s Report how the company

governance mechanism around identifies, assesses, and
climate-related risks and opportunities manages climate-related risks

Strategy Metrics and targets

Report potential impacts of climate- Report the metrics and targets

related risks and opportunities on used to assess and manage
the business, strategy, and financial relevant climate-related risks and
planning where it’s material opportunities where it’s material

Figure 1: Core elements of recommended climate-related financial disclosures

58
Board’s role in addressing Management’s role in addressing
climate-related risks and climate-related risks and opportunities
opportunities
We integrate the oversight of climate- a Green Champion to coordinate with
We have a strong Board-level oversight of related risks and opportunities into our the respective factory teams that involve
climate-related issues in the organisation. operations at the plant or facility level. members from production, maintenance,
The Managing Director and CEO approves The Operations team at each facility works and electrical departments. These teams
climate-related strategies and reviews towards achieving annual sustainability lead implementation of climate-related
the sustainability performance through targets, which contribute to long-term measures, such as implementation of
key performance indicators on a quarterly climate action goals. energy efficiency in operations and
basis. Further, a mid-year review of Annual renewable energy projects. We have
Operating Plans is also conducted at all In India, our operations are headquartered a cloud-based monitoring platform to
levels. We have a Board-level Sustainability in Mumbai, with production facilities capture and monitor sustainability-related
Committee headed by the Chair of based in four regional manufacturing data to furnish performance reports on a
the Board to oversee the sustainability clusters: North, South, Central, and monthly basis.
performance and provide strategic inputs on North Eastern clusters. Each cluster has
various climate change-related matters.

Governance structure Figure 2: Governance structure

BOARD- CHIEF HEAD - PLANT CROSS-

LEVEL ESG EXECUTIVE GOOD & MANAGER FUNCTIONAL
COMMITTEE OFFICER GREEN PLANT TEAMS

In addition to incentives, GCPL provides quarterly awards at the company level and annual awards at the group level, where the best-
performing individuals and teams on sustainability are recognised. The following members are entitled to these incentives:

Entitled to incentive Incentivisation details

Head - Good & Green Green goals are set at the Godrej Group level and best-performing companies are recognised during
the annual awards. The Head of Good & Green is responsible for overseeing the performance on GCPL’s
climate change goals.

Business Unit Manager Business Unit Managers are rewarded based on their performance against goals established at the
beginning of each financial year for the plant’s performance in operations and climate action.

Green Champion Green Champions are rewarded for projects undertaken to address climate change issues.

Process Operation Operation Managers are rewarded for improvements in manufacturing process to reduce emission intensity.
Manager
59
 Strategy
We have established systems to interlink
climate change to the business strategy. SSP Narrative
Processes exist for identifying risks and
SSP-1 This is the Paris Agreement-aligned scenario where
opportunities that have substantive
Sustainability: Taking the the world shifts towards sustainable development,
financial impacts and for integrating
Green Road (Low challenges to improved global commons management, reduced
the same into the Enterprise Risk
mitigation and adaptation) inequality, and low material growth.
Management (ERM) framework. In this
reporting period, we conducted a scenario
SSP-5 This is the BAU scenario, where investments
analysis to bolster our climate change
Fossil-fueled development: towards sustainability plateau, economic
strategy.
Taking the Highway development staggers, and environmental
(High challenges to mitigation, degradation increases.
The climate change scenario analysis is
low challenges to adaptation)
a process for examining the likely future
to assess risks and opportunities arising
from climate change. A scenario is a
hypothetical situation that describes a
The physical risk scenario analysis was Through the scenario analysis, we have
pathway to a particular future outcome.
conducted by modelling water scarcity, identified prioritised facilities that are
The TCFD framework recommends
temperature, and precipitation variables for likely to witness severe physical impacts
organisations to consider a set of
SSP-1 and SSP-5. Recognised tools such as of climate change. These prioritised
scenarios, including one aligned with the
the World Bank Climate Change Knowledge locations are in Katha, Puducherry,
2015 Paris Agreement (1.5°C future).
Portal and WRI Aqueduct were used for Guwahati, and Karaikal.
Organisations are also recommended
collecting data for the period of 2020-39.
to consider a business-as-usual (BAU)
scenario where physical risks such as
increased flooding, heat waves, and water
scarcity dominate. Transitional risks and
opportunities for an organisation emerge
from shifting to a low-carbon economy. Way forward for
We have considered two SSPs that are addressing physical risks
provided by the International Panel on
Climate Change. Descriptions of the two
SSPs are provided below. As a starting point for climate strategy on mitigation and adaptation, Katha,
Karaikal, Guwahati, and Puducherry will be considered for further detailed

We have utilised SSP-1 (which aligns with assessments to identify cluster/facility-specific hotspots. This will help the company

RCP-2.6) and SSP-5 (which aligns with RCP- strengthen supplier engagement, reduce greenhouse gas (GHG) emissions across

8.5) pathways, with a time period of 2030, the value chain, and consequently reduce operational and reputational risks.

as most development plans, including

the Sustainable Development Goals, are
aligned to the target year 2030.

60
The transition risk scenario analysis was that align with the Well Below 2 Degrees
conducted through a sectoral review to (WB2DS) and 1.5°C futuristic situations.
assess potential risks and opportunities. The following risks and opportunities
Further, the EnROADS Simulator (developed were identified through the transition risk
by MIT Sloan and Climate Interactive) was scenario analysis:
used to model low-carbon economies

RISKS OPPORTUNITIES
• Carbon price • Enhanced • Subsidised renewable energy
volatality energy efficiency
• Increased purchasing power of customers
• Transition to low-carbon technology
• Manufacturing of products with lower
• Increase in fuel prices that impact carbon and water footprint would attract
upstream and downstream operations environmentally conscious consumers

The identified physical and transition risks Specific risks with substantive financial
pose financial implications on the consumer impacts are summarised on the next page.
goods sector. We have further evaluated
the financial impacts of the prioritised risks.

61
 Financial impact of climate-related risks

Increased cooling demand

• Increased cost due to a rise in electricity consumption with an increase

in cooling demand in 2030
• Electricity consumption for cooling increases by approximately 1-8%
with every 1°C increase in warming above 20°C weather

Financial assessment
• Projected mean temperature (anomaly) calculated across all the facilities
through SSP-1 and SSP-5
• Percentage increase in electricity consumption: 0.88-6.24%
• Summer electricity consumption: 1,32,32,579 kW

Workforce health and safety

• Increase in workers’ wages due to loss

in productivity caused by heat wave-
induced heat stress
• Financial impact due to loss in
productivity in the fiscal year 2029-30

Financial assessment
• Days with a heat index of more than 35°C
(anomaly): 146.6 days
• Total number of days lost: 7.76 days
• Assuming 300 days of work.
• Total number of workers: 1195
• Average blended rate of non-managerial
workers for the fiscal year 2022-23: ₹680/day
• Assuming 5% rate of inflation, inflated
adjusted wage by 2030: ₹1,005/day

₹8.20-25.20 crore ₹0.93 crore financial

financial impact impact due to loss
due to increase in in productivity
electricity cost in 2030
62
 Figure 3: Financial impact of climate-related risks on the company

Increased cost of upstream and downstream operations

• Financial impact due to the rise in fuel prices and tax imposition scenario

Financial assessment
• Scope 3 emissions for the fiscal year 2021-22 from upstream transportation and distribution: 44,404 tCO2e
• Tax imposed on oil calculated using the EnROADS Simulator: ₹14.34-20.76 lakh

Water availability

• Facilities in high water-stress areas account for approximately 50% water withdrawal
• Financial impacts emerge from increased procurement of treated water by third-party vendors due
to a change in the rainfall pattern and water recharge potential for North and South regions

Financial assessment
• Rainfall Pattern: Baseline: 956 mm, BAU: 992 mm, and 1.5°C: 972 mm
• Water recharged through a large rainwater harvesting system:
• Baseline (fiscal year 2021-22): 1950 Mega litres (ML), BAU scenario: 1,548 ML, and 1.5 DS Scenario: 1,510 ML
• Inflation-adjusted cost of procurement from third-party in 2030: ₹1,91,66,036-2,09,39,923

Palm oil availability

• Effects on crop production

and market price of palm oil

Financial assessment
• Decrease in the demand for palm oil due
to a shift towards palm oil alternatives
• As per the RCP 2.6 scenario, the market
price of crude palm oil (CPO) is projected
to decrease
• Impact on the crop yield of palm oil by
2030: 30% decrease

₹0.42-0.68 crore ₹0.04-0.05 crore Decrease in the demand of CPO

financial financial might result in excessive supply,
impact of diesel impact of water which may lower the price,
consumption consumption resulting in no financial impact
63
 Risk management
Risk management extends from materiality The risk mitigation plans are presented to We have established a comprehensive and
assessment wherein material issues are the Board-level Committee for their inputs, structured approach to risk management.
identified through stakeholder engagement which are incorporated into the mitigation It involves a Board-level oversight to a
and secondary research. Our materiality plan from time to time. Climate change- dedicated Risk Management Committee
analysis uses the methodology of identifying related risks are assessed along with other and a cross-functional team within the
issues across 6 capitals, followed by business risks, and the identified risks business to routinely assess risks across
engagement with 450+ key stakeholders on are classified into short-term (1-3 years), the company.
material issues and finally, the development medium-term (3-5 years), and long-term
of a materiality matrix by using a specialised (5-7 years). Through informal forums, discussions, and
tool for issue prioritisation. All stakeholder annual planning conferences, we regularly
groups play a significant role in influencing The risk mitigation strategy translates to seek feedback from employees to improve
our overall performance and operations. action plans made at two levels: the risk management practices. For
understanding climate-related risks and
Climate change is one of the material • Business level: We develop our developing mitigation measures, regular
issues identified through the materiality sustainability strategy at the business open forums and monthly review meetings
analysis exercise. This material topic is level to manage major risks such as are held.
also a part of our ERM. Following the climate change and water-related
identification of key material topics through risks. Progress on risk mitigation is
materiality assessment, our Board-level monitored on daily, monthly, quarterly,
Risk Management Committee and Risk half-yearly, and an annual basis.
Management team oversee the risks and • Site/plant level: The business strategy
mitigation measures. Our risk identification is cascaded down to the plant level,
and management processes are integrated and an action plan is created for every
with the business strategy. We identify plant. Daily and monthly meetings
risks through analytical techniques such as are conducted, and the progress is
scenario analysis. Probability and impacts reviewed.
are assessed qualitatively and quantitatively,
and action plans are developed for risk
management.

Integrating climate-related risks in GCPL’s ERM system

CLIMATE- FINANCIAL PRIORITISATION INTEGRATION

RELATED RISKS IMPACT OF RISKS OF RISKS OF RISKS IN
ANALYSIS GCPL’S ERM

GCPL’s sustainability team In consultation with the Plant Based on the financial The Risks team incorporated
organised a climate change and Operations team, GCPL impacts, the GCPL climate-related risk drivers in
scenario analysis study calculated the financial impacts team priortised the GCPL’s ERM framework that has
of climate-related risks climate-related risks a Broad-level oversight

64
Metrics and targets
We identify, record, and monitor key In line with our Group’s vision and goals, we
performance metrics authentically, which have established five goals, called ‘Greener
helps in analysing the organisation’s India Targets’, which are expected to be
operational performance and establishing achieved by the year 2025-26.
goals and targets to enhance them further.
We maintain a robust data management Below is the list of goals, our approach
system to record our performance and take towards achieving them, and our
strategic decisions accordingly. performance in achieving them so far
during the reporting period:

Focus area Goal Approach Fiscal year 2022-23 performance

• Reduce specific energy • Improvising processes and • Reduced our specific energy
consumption by 40% by 2025 enhancing system efficiencies consumption by 39%
• Increase renewable energy • Upgradation of technologies • Increased the renewable
Energy
portfolio to 35% by 2025 • Increasing adoption of energy portfolio to 31.6%
renewable energy sources such
as solar and biomass

• Reduce GHG emission • Enhancing adoption of cleaner • Reduced our GHG emission
intensity by 45% by 2025 and fuels such as biomass, and intensity by 48%
carbon neutrality for Scope 1 improving process efficiencies (Note: This includes Scope 1 and 2
Emissions emissions, and specific emissions are
and 2 emissions calculated per tonne of production)

• Reduce water intensity • Innovative water • Reduced water intensity by

by 40% by 2025 while management systems, 30% and achieved water
maintaining water positivity technological improvements, positivity
Water
and integrated watershed
management programme

• Maintain zero waste to • Judicious and innovative use of • Diverted 100% waste from
landfill and achieve zero materials, including reuse and landfill, and 91% of facilities
Waste liquid discharge recycling and greater circularity have zero liquid discharge
(Note: Waste generated is
calculated by specific waste to
landfill per tonne of production)

65
 Other
Disclosures

A. Key financial ratios

Standalone Consolidated
FY 22-23 FY 21-22 FY 22-23 FY 21-22

Debtors turnover ratio 22.90 23.24 11.18 11.48

Inventory turnover ratio 10.89 9.13 7.20 6.33

Interest coverage ratio 529.25 199.83 12.02 19.11

Current ratio 3.03 2.62 1.76 1.43

Debt equity ratio - - 0.07 0.14

Operating profit margin (%) 24.37 24.90 19.07 20.30

Net profit margin (%) 20.10 21.69 12.90 14.65

Return on net worth (%) 17.56 20.82 13.34 16.99

Reasons for change in standalone ratios Reasons for change in consolidated ratios

• Increase in interest coverage ratio is due to lower • Interest coverage ratio has decreased due to an
borrowings in the current year increase in interest cost of approx 60%, as compared
to last year
• Debt equity ratio has decreased due to repayment of
long-term debt
• The reduction in return on net worth is on account
increase in net worth on account of profit for the year
and foreign currency translation reserve

66
Formulae used for calculation of the ratios

Debt equity ratio (including financial liabilities) Net sales/average of opening and closing trade receivables

Inventory turnover ratio Net sales/average of opening and closing inventories

Interest coverage ratio (PAT + finance cost + depreciation and amortszation expense +
(profit)/loss on the sale of fixed assets)/finance cost

Current ratio Current assets/current liabilities

Debt equity ratio (including financial liabilities) Non-current + current borrowings/total equity

Operating profit margin (%) (Profit before depreciation, interest, tax, exceptional items and foreign
exchange gain/loss less other income)/total revenue from operations

Net profit margin (%) Profit after tax/net sales

Return on networth (%) Profit after tax/average equity

B. Internal control systems

and their adequacy
We have implemented an internal control As part of the audits, they also review Controls with respect to authorisation in
framework to ensure that all assets are the design of key processes from the underlying IT systems are also reviewed
safeguarded and protected against loss point of view of adequacy of controls. periodically to ensure that users have
from unauthorised use or disposition and Periodic reports—as part of continuous access to only those transactions that
that transactions are authorised, recorded, monitoring—are generated to identify their roles require. Our head office in
and reported correctly. The framework exceptions through data analysis. The Mumbai, offices across India, and all major
includes Internal Financial Controls over internal controls are tested for their factories follow an Information Security
Financial Reporting, which provides design and operating effectiveness across Management System and are ISO/IEC
reasonable assurance over the integrity all our locations and functions by the 27001:2013 certified.
of financial statements of the company Corporate Audit team; control failures are
and reduces the possibility of frauds. Our reviewed by the management from time
Corporate Audit and Assurance department to time for corrective action.
issues well-documented operating
procedures and authorities with adequate
built-in controls keep track of any major
changes both at the beginning of any
activity as well as during the process.
67
 Our
Strateg
68
Pillars
 Category develop existing portfolio 70

Funded by radical simplification 100

People and planet alongside profit 130

gic
69
70
Category develop
existing portfolio

71
 Category develop
existing portfolio

Financial Manufactured Intellectual

Capital Capital Capital

Key enablers Risks identified

• Global category • Enhanced, digitally enabled • Changing consumer preferences

structure consumer insights

• Democratising • Enhancing • Hyperinflation and currency devaluation

our brands go-to-market

• Laying the foundation for future growth possibilities • Commodity price volatility

72
Our aim is to achieve consistent, double-digit volume growth by capitalising
on our existing market leadership and deepening category penetration,
thereby creating long-term value for all our stakeholders.

10 13.34%
#1 brands Return
across 4 clusters on equity

33% ` 13,199
Growth in
e-commerce Crore in
in India revenue

73
 Our chosen
portfolio

At GCPL, we are deeply driven to create Our geographic footprint comprises some Our aim is to achieve consistent, double-
affordable, delightfully designed products. of the largest and fastest growing emerging digit volume growth by capitalising on our
Our consumers are at the heart of economies in the world. However, our existing market leadership and deepening
everything we do, and serving them is what top categories in these countries, such as category penetration, thereby creating
makes it all worthwhile. Household Insecticides, Air Care, and Hair long-term value for all our stakeholders.
Colour, are underdeveloped, with substantial
As category leaders, our strategy is to headroom for growth. We view this as a
increase innovation-led growth and discover huge opportunity for value creation by
new ways to disrupt our product portfolios. applying our winning strategies for category
Democratisation and accessibility are development through our know-how in
important while creating superior quality product, communications, and activations.
and delightfully designed products, given
our focus on emerging markets.

India & SAARC Indonesia

• Improved distribution reach, with • Rural substockist network • In Indonesia, we outsourced the
a focus on enhancing coverage in in India grew by 10% entire distribution for general trade
underpenetrated areas to large-scale distributors to reduce
operational complexity, significantly
increase direct coverage, and reduce
• Modern trade channel in India • E-commerce in India grew at the cost of operations
delivered a high double-digit 33% with a 2-year CAGR
growth trajectory

• Multiple initiatives have been

launched to leverage digital
technologies and build closer
• Doubled down our efforts on • In India, we have geo-tagged
connections with different partners
quick commerce all our general trade urban
outlets, enabling optimal
utilisation of our resources

74
Our strong product portfolio in the Home However, in terms of market penetration, While we continue to innovate and
and Personal Care categories continues to we are not where we would like to be. create brilliant products in our emerging
help us bring the goodness of health and Goodknight Liquid Vaporizer’s market categories, we will focus heavily on
beauty to consumers in emerging markets. penetration in India is still only 25%, and increasing the footprint of our flagship
in Indonesia and Africa, it is between 1% products and categories, which, as market
and 2%. We view this as a tremendous leaders, have high profitability and growth
opportunity to accelerate growth in our potential. This will be driven by doubling
existing categories and to foster long-term down on our marketing and distribution to
economic value creation. really accelerate volume growth in these
sectors over the next 5 years, in all the
markets in which we operate.

Africa & USA

• Strong e-commerce focus in the • Nigeria’s van model • Top line online revenue grew by
USA, accounting for ~6% of the continues to increase our 11% YoY to USD 3,60,000, while
total business direct reach traffic remained flat

• We moved to a self-sustainable model in which the platform was funding • The advertising cost of sales
itself by spending the profit for next months’ expenses and marketing reduced from 100% to 30%, which
made the platform profitable

• Repeat customer rate • Direct-to-consumer (D2C) made a 16% contribution to key NPDs across Premium
increased to 25% from 19% in Beauty and Professional Product categories
the fiscal year 2021-22

75
 Our globalisation
strategy

Latin America Sub-Saharan Africa & USA

#1 Hair Colour
#2 Hair Colour
#1 Hair Colour
(Argentina) (Chile) (Ethnic hair | Sub-Saharan Africa)

Premium Beauty and Premium Beauty and Premium Beauty and

#1 #2 #2
Professional Products Professional Products Professional Products
(Hair fixing sprays | (Hair styling products | (Hair extensions |
Argentina)** Argentina)* Sub-Saharan Africa)

#1 Premium Beauty and

Professional Products
(Depilatory products | Chile)

Source: *Nielsen, **Scentia

76
 India & SAARC

Household
#1 #2 Fabric Care
Insecticides

Personal Wash
#1 Air Care #2
and Hygiene

#1 Hair Colour

Indonesia

#3 Hair Colour
#1 Household
#3 Hair Colour
a) (Caucasian hair colour | South Africa) Insecticides

Leader in Premium Beauty #1 Air Care

and Professional Products
(Hair care and maintenance
products | Africa & USA)
#1 Baby Wipes

77
 A broad emerging
markets portfolio
In the fiscal year 2012-13, 44% of our overall
revenues came from international businesses.
In the fiscal year 2022-23, it was 44%.

Geography Salience Category Salience

5%* 5%*

FY 22-23 57% FY 22-23 59%

26%

36%

13%

India Personal Care

Indonesia Home Care
Africa, USA, and Middle East Others
Others

*Comprises inter-company eliminations and miscellaneous products

78
Portfolio of our
power brands

`1,000 crore+

`500-1,000 crore

`200-500 crore

Top 11 brands contribute ~75% of revenue

79
 Strengthened brand positions
across key markets and geographies
I
a
T
c

C
c

•
#1

* •
#2

*Roby Sprays only

80
Renewed global
category structure
In the fiscal year 2021-22, we created Air Care, Hair Colour, and Hygiene and will
a renewed global category structure. build on product development (innovation
This new structure will power our global and renovation) and brand equity (brand
categories in Household Insecticides, strategy and advertisement), enabling three
critical sources of value:

Coherent global strategy and

cross-geography synergies

• Goodknight Liquid Vapouriser, a • We cross-pollinated aer Matic from

successful product in India for the last Indonesia to India, and with great
decade, is now being further scaled success; alternatively, we are taking
up in the region, as well as in new aer Power Pocket from India to
markets like Indonesia, Bangladesh, Indonesia, along with Bangladesh and
and Nigeria. the Middle East.
• Godrej Shampoo Hair Colour, which
is currently being scaled in India,
has now been launched in Indonesia
too, with the same basic technology
but significant variations in product,
packaging, and positioning.
• Goodknight Smart Spray in India,
Goodknight Power Shots in Africa,
and HIT Fast Insect Killer have
all been created using the same
technology. Launched in India with
Smart Spray, the product has seen
success in Nigeria with Power Shots,
and we’re now back in India with a
smaller SKU, which is being further
developed for other geographies.

Scaling up products across our

categories and geographies

81
 Deeper capability on product and
communication development

We are very focused on formalising our Globally, we are standardising our approach
global innovation and renovation pipeline to advertising development. For example,
across categories, which is being managed in Air Care, we built on the insight that the
through a structured stage-gate process. category is typically adopted when guests
visit home. So we took the idea of ‘talking
There is a renewed focus on renovating our rooms’ and used it in advertisements in
core to ensure a winning product portfolio. India (aer) and Indonesia (Stella).

We are centralising communication

development with the help of in-house
creative teams: Light Box (our media
development studio) and Design Lab (a
creative space that leads new product
development across geographies).

Better alignment across product

development and brand equity

Our Product and Equity teams are Strengthening of brand codification Our global footprint is our asset as we use
structured to be lean and flat with also occurs with brand leaders acting as our experience to solve common challenges
both reporting to the Head of Global guardrails for both sets of activities. across similar markets, which may be worlds
Category and Innovation and work jointly apart on a map. We are also investing
on most projects. Cross-training efforts We understand local consumers’ behaviour heavily in expanding operations and
include training on operating principles and preferences and use ideas and know- recruiting locally for our emerging markets
for decision-making and other functional how from around the globe to innovate and to leverage local expertise and experience.
training. The basic principle is to train our develop products that cater to the evolving
Marketing team on all core principles of needs specific to regions and markets.
the function.

Adopting global synergies for product development

82
 Enhanced, digitally
enabled consumer insights
By taking a step back and looking at the opportunities to achieve the trifecta—right
landscape more broadly, considering for the consumer, right for the brand, and
current performance, trends, and right for the category. From the technology
changes in consumer behaviour, we perspective, we aim to continue to invest
could understand how things might in consumer research and data analytics,
pan out, and how both categories and which will allow us to identify trends and
brands can evolve to meet consumer drive category growth.
needs in the future. This helps us identify

Consumer obsession:
A sustainability lens
Long-term brand tracking is a valuable In today’s rapidly changing market, we are
tool for measuring if our brand values also adopting a more agile approach. Our
resonate with our consumers and translate company is leveraging new technologies
into awareness, preference, and ultimately, to continuously measure brand
loyalty. performance and tap into consumers’
sentiment, whenever required. We are
Brand perception surveys help us to tracking consumer preferences on various
define our top consumer segments and metrics—from awareness to product
understand what they care about, why they feedback to usage behaviour and appeal
shop, and the best way to capture their for various new ideas.
attention. These insights enable us to better
comprehend the trends of consumers. In the fiscal year 2022-23, we covered
over 50,000 consumers and their
Brand perception tracking is traditionally perception of our brands. We reached
performed through a scientific process of these consumers through various
meeting a randomly selected relevant target channels, online and offline, randomly
group (typically category users) at their at their homes or at central locations to
homes. A survey is conducted to understand gather insights. This survey covered nearly
their levels of awareness, perception, and 60% of our brands by revenue. Gathering consumer insights
usage of brands in the category, as well as across various channels
their salience of advertising for the brands.

83
 By incorporating a sustainability lens into our existing surveys, we gained a deeper
understanding of the role sustainability plays in shaping consumer preferences.

We engaged our consumers to:

1. Assess attitudes 2. Identify opportunities

towards sustainability for innovation

We asked questions that helped us understand We asked questions to explore consumer

how sustainability factors into our consumers’ values and preferences that could drive
priorities and values, and how it influences brand differentiation and provide us with
their perception of our brand. a competitive advantage.

We recently commissioned a brand Using an agile brand perception-tracking

perception survey among 21-45 year olds approach, we are working to ensure
in India. In the survey, 67% of the people that our brands remain relevant and
found ‘reusability’ and 32% found ‘less resonate with our consumers. We aim
plastic waste’ to be relevant. This drove a to make more informed decisions that
perception of being an eco-friendly product foster long-term growth, enhance our
among about two thirds consumers. reputation, and contribute to a more
sustainable future for all.

84
Democratising
our brands
HIT No-gas Spray (India)

Our purpose has always been to serve the

needs of consumers above everything else.
We innovate continuously to create versions
of our products in different sizes and at
multiple price points to cater to as big a
net of consumers as possible. Smaller value
pack offerings such as HIT No-gas Spray
in India and Indonesia, Goodknight Mini
Liquid Vaporiser in India, and Godrej Expert
Rich Crème in India have revolutionised
the market and made our products more
accessible to a larger section of consumers.
This also increases consumer loyalty, when
they see a bespoke creation of a beloved
brand that works for them specifically.

We are democratising
our brands by creating
smaller value packs

Goodknight Mini Liquid Vaporiser (India) Godrej Expert Rich Crème (India)

85
 Enhancing
go-to-market
As we delve deeper into emerging markets, We are rapidly increasing our presence
ensuring that consumers have access to our across multiple platforms—traditional
products on a regular basis is vital to our and modern retail channels, e-commerce,
goal of achieving increased penetration. We and digital marketplaces—to ensure our
are continuously expanding our distribution products are always available to serve our
channels to increase our consumer reach, consumers, regardless of where they are
with a greater focus on unserved or poorly located.
served rural and remote markets.

We continue to leverage
traditional kirana stores in India

86
Channels of
the future
New technologies are transforming the In India and Indonesia, it has also refocused In Bangladesh, the focus continues to be
sales and distribution landscape. In India, attention on the role of traditional on building the traditional kirana (modir
they are growing more than double than kirana or neighbourhood convenience dukaan) backbone because modern trade
that of traditional channels, with quick stores. Similarly, in Africa, we have seen and e-commerce are limited to urban
commerce gaining significant popularity. the acceleration of proximity shopping centres. In Sri Lanka, we continue to focus
Additionally, e-commerce has seen strong to overcome the challenges posed by on all channels, including traditional,
growth across India, Indonesia, and the the pandemic. This has reinforced the modern trade, and, more recently, the
USA, and modern trade, Cash and Carry, importance of last-mile distribution. New e-commerce channel too.
and, more recently, eB2B continue to grow. models will now be omnichannel, straddling
a pyramid of online and offline sales.

Our leadership engages with

our partners on ground

87
 Shopper
behaviour
Regarding an assortment mix, the shift in leaning more towards ‘value’ buys. We
shoppers’ demand for health and hygiene have been meeting this consumer need by
that we witnessed in the fiscal year 2020-21 making our products more accessible and
across markets sharply reversed this year. affordable. We launched access packs of
In India, for example, the spike in both Godrej Expert Rich Crème, Goodknight
handwash penetration and Household Mini Liquid Vaporizer, and HIT No-gas Spray
Insecticides consumption observed during in India.
the COVID-19 pandemic began tapering off
significantly in the fiscal year 2022-23. In Indonesia, we relaunched an access pack
of our hero brand HIT Aerosol. We also
However, during the year, we have seen launched a low-cost hair colouring solution
a global economic slowdown and high to cater to consumers’ shopping through
inflation impacting consumers’ purchasing general grade.
power. This has impacted volumes across
geographies, as consumers have been

Partnerships Building partnerships with

salons across Africa

The interdependencies of our networks have

always been crucial for the business. For
the system to deliver successfully, we need
all partners to be enabled and benefited. In
addition to continuing our support towards
our suppliers, distributors, wholesalers, and
modern trade customers globally, we are
establishing deeper partnerships with large-
scale salons across Africa.

88
Expanding
penetration and reach
In India, we continue to focus on deepening We have experimented with moving the In Indonesia, we significantly accelerated
our penetration in traditional trade. frontline salesforce to third-party payroll, our go-to-market transformation in
Specifically, we aim to expand our reach in which has resulted in improved productivity general trade by outsourcing our direct
underpenetrated areas of the country by and reduced attrition. We have now operations to distributors. This transition
driving rural reach and penetration through moved 40% of the business with frontline has significantly reduced our operational
the launch of lower priced stock-keeping salesforce to third-party payroll and plan to complexity and released our Sales
units in our key categories, which will result continue this transition going forward. team’s bandwidth to focus on business
in greater accessibility of our products to development activities. In addition, this has
rural consumers. Tapping into the emerging opportunity reduced the cost of operations and allowed
of a growing chemist channel remains a us to deepen our direct coverage.
In the past year, we created a blueprint key strategic lever for us. To achieve this
of the ideal rural coverage along with our goal, we have created a strong network of Going forward, we aim to continue the
external partners. Guided by this blueprint, pharma/over-the-counter drug distributors, momentum on distribution expansion
we have grown our rural substockist and accordingly, created a new revenue and double down on new outlets while
network by 10%. We have further leveraged stream. This channel helps us expand our maximising output from our existing
external partnerships in rural India and reach into the previously untapped chemist distribution base.
worked closely with an emerging player outlets.
in the rural eB2B space. The partnership We are ramping up our go-to-market efforts
has helped us reach villages with a Our focus in Bangladesh remains on across Africa. In Nigeria, where trade is
population of less than 3,000, where we becoming one of the top FMCG companies largely unorganised and wholesale-led,
could not reach directly through our through category development and we are scaling up our last-mile distribution
substockist network. This has significantly strengthening of our go-to-market in the through van models, subdistributor models,
complemented our rural distribution, and top 175 towns. and salon advocacy.
the initiative has now been expanded to
approximately 15 states in India. In Sri Lanka, our team is driving productivity Our experiment of launching a D2C
and expanding reach through a cloud- channel aimed at seeding new products,
To strengthen our in-market execution, based distributor management system experimenting with untested price points
we are now tracking tertiary sales in rural and salesforce automation. Our focus is and product bundles, leveraging consumer
areas, measuring sales from substockists to ensure that we reach a good mix of analytics, and potentially providing
to rural retailers, and using that as a key traditional and modern trade stores across distribution in white space regions, with
performance indicator (KPI) for rural sales the country. retailers coming onto the platform, has
team members. We launched the tertiary been faring well.
sales tracking system in the past year, which
made us one of the first FMCG companies
that not only tracks tertiary sales but also
uses this data as a crucial KPI for our rural
sales ecosystem.

89
 Diva Shop, our multi-brand
D2C channel

We continued our door-to-door sampling We have expanded the distribution of

drive to build demand and educate our Hair Extensions business in the USA.
consumers on our recently launched Alongside Walmart, we have now expanded
Household Insecticides portfolio, in addition into other retail partnerships such as Target.
to expanding distribution to modern trade. Hair Extensions is a USD 1 billion market
This resulted in a significant shift in our in the USA, and this offers a tremendous
non-wholesale channel contribution. We aim opportunity with significant consumer
to continue the momentum in Nigeria and synergies. We are the only end-to-end T
m
strengthen fundamentals at an accelerated hair player (Hair Extensions and Hair
pace in South Africa and Kenya to unlock Care) catering to the African-American
the full potential over the next few years. community.

Expanding our Hair Extensions

business in the USA M
a
t
a
m
s
j

I
m
s
I
a
m
I
90
Laying the foundations for
future growth priorities

Improving Building an Exploring new

efficiencies omnichannel play go-to-market formats

We are driving efficiency across Given the changing shopper In Nigeria, we continue to
the value chain and improving trends and environments, we are explore the D2C channel and
sales productivity by leveraging ramping up capabilities to service are seeing strong wins, given
analytics and technology. the demands of an omnichannel the overall shopper preference
Reducing sales losses through play. Externally, this translates for online purchasing.
auto-replenishment and enhancing into servicing and solving channel
salesforce effectiveness through conflicts. Internally, it means
technology remain the critical implementing the right team
levers of future growth. structure to service this channel
with agility.

Transforming
modern trade
Modern trade is a key driver of growth We are also investing in developing modern In Africa, given that modern trade
across geographies, and we intend to ramp trade-specific analytics and shopper continues to be key, we are leveraging
this up. Building blocks include account marketing capabilities. availability, strong in-store presence,
and portfolio prioritisation, category and competitive pricing to build on the
management, fill rate improvement, and Modern trade accounts for nearly 65% of opportunity, particularly in South Africa.
strong partnerships with customers through our business in Indonesia. We continued Our entire business in the USA is modern
joint business planning. our long-term journey to drive modern trade-led, with the channel split into retail
trade excellence, with a continued thrust on and beauty stores. We continue to leverage
In India, we are investing in category strategic investments, prioritising winning strong channel partnerships and joint
management to build new-age categories accounts, which was particularly relevant business planning to drive distribution and
such as Air Care and Household with shopper shifts post-COVID-19, and new product listing, compelling in-store
Insecticides. To this end, our teams focusing on joint business partnerships, presence and competitive pricing.
are sharing and learning on category which were crucial to winning in an
management best practices from our unprecedented macroenvironment.
Indonesian and Latin American businesses.
91
 Building on the Training and capability
salon channel building for frontline teams
We are moving beyond traditional retail Equipping our team members to best In India, our in-house training academy,
to build other new-age channels such serve the changing landscape is critical. the ‘Godrej Sales Academy’, was moved
as a salon. Restructuring of our salon We continue to drive multiple capability- completely online to encourage easy
channel in Africa will be a big focus as building initiatives, which were enhanced access and on-the-go learning. In other
salon partnership programmes are key to over the past year and were moved online. geographies too, we have leveraged online
creating influence, driving penetration, and training modules for continuous skillset
generating demand in hair fashion as well improvement in a tough macroenvironment,
as hair care. We intend to leverage this while also focusing on team engagement
channel to drive last-mile distribution. and motivation.

Ramping up
e-commerce
I
In India, we fully integrated e-commerce Underpinning this benefit, in India, we Through joint business planning,
g
more closely with our overall sales are building a strong data backbone to promotion strategies, and online content,
n
structure, building synergies on the leverage the data-rich environment of we have made substantial upgrades to
w
omnichannel nature of shopper behaviour e-commerce and drive our efficiency and our capabilities, which are yielding results
p
of our customer base. We embarked on effectiveness across the board. We are in terms of on-platform conversion rates
n
the journey of leveraging e-commerce to investing in expanding capabilities in and off-takes. We continue to deliver
p
expand our more premium categories such the e-commerce function by insourcing strong performance on e-com-focused
a
as Air Care and Household Insecticides and capabilities such as graphic design, content product innovations such as Goodknight
h
saw some great results. This encouraged us writing, and search engine optimisation as Mosquito Nets, HIT Anti-mosquito
e
to explore more of the channel’s potential well as performance marketing. We have Racquet, and aer Matic.
e
to sharply target an audience base with a dedicated Shopper Marketing team to
c
higher spending capacity along with a distil insights from e-commerce brands and
t
bigger appetite for experimentation. platforms to extract the maximum efficiency
t
from our visibility and promo spends. To
t
E-commerce represents strong improve operational efficiencies, we are
opportunities to win in a fast-growing also automating our processes from the
channel, while leveraging its unique reach order-receiving stage to the billing stage
to bring innovative products and brands to and leveraging data analytics to improve
market. our forecasting methods. Our objective
is to improve margins in the e-commerce
channel through a better mix and
optimisation of operational efficiencies.

92
 aer Matic, our e-commerce-first launch

In Indonesia, our e-commerce business In the USA, our efforts to strengthen This has been more than just a sales
grew by 40% after COVID-19. The focus has e-commerce fundamentals paid off with the channel, with substantial upsides to
now shifted to our main platforms where business growing strongly to become nearly leverage, like the immediate availability of
we are collaborating for joint business 4% of our overall USA business this year. new products, controlled brand building,
partnerships, which have translated into consumer data, seeding new products,
new product launches, catalogues, and E-commerce in Africa has noteworthy ability to cross-sell/upsell, experiment
programmes. Driving focused digital headroom for growth, particularly in the with untested product bundles, price
activity on online and offline platforms fashion and beauty segments. Given limited assessment, and opportunities for focused
helps in creating a seamless consumer resident traffic on third-party platforms, in consumer research. We have established a
experience: from digital awareness to Africa (unlike in India, Indonesia, and the new e-commerce team in Latin America and
e-commerce purchases. We also began USA), we launched our own D2C platform are investing in multiple ways to grow our
creating special e-commerce-only products in Nigeria. presence on different digital platforms and
to serve large online consumer segments, marketplaces.
thereby increasing the basket size across
transactions.

93
 Leveraging
brand advocacy
Car Fragrance is a 30% penetrated India’s rural areas have a bigger and more Quora, being an intent-driven search T
category in India. Headroom is available to rapidly expanding digital universe than platform, allows consumers to educate b
grow the category by building relevance for urban areas. In line with our increased focus themselves on numerous topics, hence I
the format and getting new triers into the on scaling up our reach in rural markets, for playing a key role in influencing purchase w
category. brands like Godrej Expert Rich Crème and decisions. Consumers on the platform are W
Godrej No.1, we continue to have sustained at the mid stage of the funnel, and this c
Digital as a medium gives one the digital investments on leading video makes Quora an apt platform for getting f
opportunity to share their message with platforms. We have been actively leveraging new users into the category, especially for t
the target audience, while minimising advanced targeting capabilities, specifically a brand like Godrej Expert Rich Crème. t
wastage. For our brand Godrej aer Twist, designed to target rural markets, at scale, Through a combination of targeting options T
we leveraged deterministic data signals through negation of urban areas. and ad formats, we actively answered hair
on digital mediums, with the objective of colouring-related queries and addressed I
maximising reach, while directly reaching With consumer journeys becoming top searched queries from consumers b
out to the product users: car owners. increasingly complex and non-linear, looking at covering grey hair. c
We identified key platforms to target car activating touchpoints and being present in e
owners through digital channels such as consumers’ purchase journey, when they are Our digital penetration in Indonesia 2
fuel payments and fast tag transactions. seeking decision-enabling information on reached 77%, which is 10 million (5.2%) c
The results and learnings have been very digital mediums, are important. more than that in 2022. We partnered with l
encouraging. content creators and influencers to create c
content that showcased our products. We
also chose different personas for different
brands that catered to different consumer
interests.
Ampifying our digital
presense in Indonesia

94
 Darling Nigeria collaborates
with pop sensation Ayra Starr

TikTok alone has been a big success in In Africa, our categories are heavily driven
building our digital presence in Indonesia. by the visual content and influencers. We
Indonesia is now the second largest region plan to scale-up our strategy of co-creating
with the most active users, after the USA. content with influencers to enhance
We leveraged the platform by using it to believability and impact, while driving new
create content related to hair colouring products and styles. We have partnered
for our Hair Colour brand NYU, whose with macro, micro, and nano influencers
target audience comprises women in their across markets to drive new product
twenties, who also constitute a majority of awareness and considerations.
TikTok’s users.
We have also leveraged celebrity
In Africa, we moved our Nigeria D2C partnerships to amplify our digital presence.
business to a self-sustained model, while Darling Nigeria partnered with Ayra Starr,
continuing to provide world-class customer an international pop sensation from Nigeria,
experience. This resulted in an impressive who is immensely popular among our core
25% repeat customer rate. It has also target audience of young women across
clocked upwards of 16% saliency in the Nigeria and other African markets.
launch of premium new products across
categories.

Leveraging TikTok to
build brand advocacy

95
 In Argentina, our Hair Styling brand F
Roby started a campaign to strengthen t
our consumers’ self-esteem to embrace h
whoever they want to be. The brand i
launched a campaign called ‘You Have All a
What You Need’ and built partnerships with b
influencers by using our products to achieve m
different types of hairstyles to enhance
their unique personalities. We partnered
with nano, micro, and macro influencers,
which allowed us to reach a larger audience
in an organic manner.

Our Hair Styling brand Roby partners

nano, micro, and macro influencers
Issue’s ‘It’s Natural to
Choose’ campaign
L
a
Our Hair Colour brand Issue launched the
‘It’s Natural to Choose’ campaign, which
amplified the reach of the brand, enabling
other points of contact with the target
audience and, as a whole, achieving better W
results than estimated. s
s
g
P
s
i
b
c
t
c
r
As a media best practice, in Latin America, t
we worked an ODR with Issue. On apps l
like Meta and TikTok, this tool capitalises o
on influencer-created content, helping to m
develop the credibility of the message m
with the public through collaboration. r
Consequently, we have seen double-digit c
growth in some of our main campaign KPIs. d
This consumer-centric way of thinking led
Villeneuve to achieve a 2.5× growth in the G
number of Instagram followers, in addition a
to an improvement in content quality, h
leading to better delivery on KPIs. e
o
Leveraging analytics to enhance
p
campaign performance
o

96
 First-party data has become more relevant
than ever before. Our Villeneuve brand
has been gathering simple but important
information on visitors. This tiny step will
allow us to enhance consumer experience
by providing relevant and personalised
messages.

Experimenting with
customised content

s
s

Leveraging technology
and analytics
We have integrated different technology Technology continues to play a key role in Through this, we intend to ensure that our
solutions across the value chain in India, improving field-force productivity in our primary aim remains to expand distribution
starting with our sales people on the Indonesian business. Hand-held terminals in traditional trade in both Bangladesh
ground, through our many channel partners. guide and track on-ground decision-making, and Sri Lanka and drive efficiencies in
Predictive analytics enables our urban and analytics and dashboards help drive penetrated stores. We are also leveraging
sales people to sell the right assortment sharper execution. Regional distributors are automation to streamline other functions
in a store. We are moving our distributor connected and serviced through an online such as inventory management and claims
billing software and hand-held terminals to portal with simplified e-claim settlements. management.
cloud-based servers to bring more agility to
the sales ecosystem. We have completed A trade spend optimiser tool helps In Africa, salesforce automation has been
cloud transformation for our urban and drive return on in-store investments for expanded to cover most feet-on-street in
rural businesses. We are currently exploring modern trade. We aim to continue to South Africa and Nigeria. This has helped
the usage of Global Policy and Strategy integrate technology across all execution expand coverage and improve brand
locations to drive the in-market execution touchpoints. We have also built stronger visibility across the subcontinent. We now
of our Sales team both in urban and rural visibility in e-commerce analytics on focus on scaling up distribution, extracting
markets. We also have ready plans to Amazon, which we are translating into efficiencies, and building accountability
move our distributors to an automated action points. across all channels and regions.
replenishment system by the end of the
coming year, thereby minimising sales loss In SAARC, we are leveraging the potential We have also leveraged technology in
due to stock-outs. tech partnerships and analytics to help consumer insights, for example, taking
augment our traditional trade expansion consumer insights from the D2C channel
Going forward, we are building a strong through systems such as cloud-based in Nigeria to product bundles and price
analytics platform to forecast sales with document management systems, micro- points that can work, and shifting to
higher accuracy levels by considering both targeting, SOQ, and TPM. virtual consumer and stylist interactions to
external and internal factors. This is a key continue having a strong pulse of the on-
organisational priority and will enable us to ground trends and for agile action planning.
e
predict demand better and thus improve
e
operational efficiency.

97
 Fostering win-win
G
o

partnerships
c
a
o
c
To increase digital connect, we scaled
t
up our industry-pioneer android app
e
called ‘Bandhan’, which is a one-stop
t
app for all GCPL-related information,
l
communication updates, and training for
i
all our distributors. We have also adopted
t
a comprehensive approach to improve
return on investment for our distributors to
enhance engagement.

Bandhan, our industry-first

app, that fosters better
connect with distributors

Investment in media
and communication
In this age of information overload, sent pictures and videos. We collated these
it is absolutely critical to ensure that beautiful moments through a digital film,
our brand, values, and offerings are stitched with the lullaby in the background
communicated frequently, clearly, and and pictures and videos sent in by them,
through as many different platforms which were published on Goodknight’s
and media as possible. In the fiscal year social media channels.
2022-23, we increased our investments
in brand communication across multiple
media to facilitate continuous dialogue
with our consumers.

With the launch of Goodknight’s new

TVC ‘Neendo Ko Nazar Na Lage’, we
launched a month-long social media
campaign to invite user-generated
content from parents who captured
adorable papa–baccha sleeping
moments. A large number of parents
tuned into our endearing lullaby and

Goodknight’s ‘Neendo Ko Nazar Na

Lage’ social media campaign

98
 Godrej aer Matic seized Durga Pujo as an
opportunity to create a larger 360-degree
campaign. In line with the objective of
amalgamating digital and the Durga Pujo
on-ground activation, the digital leg of the
campaign leveraged polygon technology
to retarget users who witnessed and
experienced the on-ground activation at
the pandals. This is one example of how we
leveraged technology to create an impactful
integrated marketing communication for
the brand.

Godrej aer creates a special

360-degree marketing
campaign for Durga Pujo

With communities becoming the next The campaign was executed during
big thing on digital platforms, and the wedding season, a time when new
consumers actively participating in them consumers are highly likely to enter the
to seek information and advice, share category. We enlisted group admins and
their experiences, and be a part of evangelists to create a buzz around the
conversations around a topic of interest, category in the context of weddings.
we leveraged women-centric Facebook The activity propelled user-generated
communities around beauty and hair for content, with users sharing their first-hand
Godrej Expert Rich Crème. experiences related to hair colouring using
Godrej Expert Rich Crème. This resulted in
a positive movement in the share of voice
and engagement metrics for the brand.

a
n

99
100
2
Funded by radical
simplification

101
 Funded by radical
simplification

Manufactured Intellectual
Capital Capital

Key enablers Risks identified

• Leverage • Improve our • Changing consumer • Hyperinflation and

economies of scale speed-to-market preferences currency devaluation

• Reduce our environmental impact • Commodity price volatility • Regulatory

102
We are simplifying our products and relooking at our innovation processes to
focus on what truly matters. We are leveraging our manufactured capital to focus
on high-margin products and inventory optimisation, and improving our process
efficiency with sustainable manufacturing, industry 4.0, and quality management.

17% Zero 48%

Reduction in Waste to landfill Reduction in the
India SKUs since 2019 GHG emission
intensity since 2011

Plastic Net
neutral zero
In India By 2035

103
 Simplifying products and
improving process efficiencies
Innovation has always been at the heart We drive our innovation capabilities to the next level by adopting the following
of everything we do. We have redefined key principles:
our approach towards product innovation • A ‘less is more’ approach: Fewer, • Become truly global: Efficiently
and renovation to focus on high-impact bigger, better innovations delivering synergies
opportunities that deliver substantial value to • Even more consumer-centric: Deeper • Sustainability: Sustainability built into
our stakeholders in the long term. insights, prioritising the voice of our our products from Day 1
consumers in decision-making
Our refined innovation framework • 100% objectivity: Rigorous stage-gate
emphasises the launch of fewer, yet more process, right governance
significant NPDs that have the potential to
drive exceptional growth. While new brand development will continue to be a crucial capability and driver of value,
we aim to discontinue smaller brands, where it makes sense from a better parentage/value
realisation perspective.

All our manufacturing investments

and initiatives have a three-point focus

Leverage Improve our Reduce our

economies of speed-to-market environmental
scale impact

These will help us become more competitive in the market while

driving sustainability across our value chain.

104
Factories across our locations in India, Africa,
Latin America, and Indonesia

105
 Critical enablers
1. SKU rationalisation

As part of our ongoing commitment In Indonesia, we have reduced our SKU

to optimising resources and enhancing production by more than 50% compared
efficiency, we recently undertook a with January 2022. This consolidation has
comprehensive SKU rationalisation resulted in several benefits:
exercise across all product portfolios. By
streamlining our offerings and focusing • Reduced sourcing of packing
on high-performing products, we have materials by 50%, resulting in less
achieved significant improvements in operational complexity and fewer
manufacturing efficiency and waste manufacturing challenges
reduction. • Focused replenishments to our
distributors, simplifying work
In India, we successfully rationalised our processes at our customers’ end by
SKUs by 17% from the fiscal year 2022- managing a smaller number of SKUs
23. Similarly, across our Africa, USA, and • Reduced obsolete stock provisions
Middle East cluster, we rationalised our by 10%, as we concentrate on
SKUs by 25% in the fiscal year 2022-23. This running profitable SKUs and
strategic initiative has enabled us to run eliminating tail SKUs
a lean supply chain operation, resulting in
better resource utilisation for higher value
generation while minimising wastages.

Strengthening business outcomes

SKU rationalisation in Kenya

In 2021, our Kenyan operations This strategic consolidation has Moving forward, we will continue to
produced approximately 3,000 SKUs yielded several noteworthy benefits, assess and refine our SKU offerings
spanning our Hair and Personal Care including reduction in inventory storage to further drive focused growth and
categories. Recognising the potential requirements and minimisation of operational efficiency across all our
for improvement, we conducted an wastage. The adage ‘less is more’ proved global markets.
in-depth analysis of these SKUs and apt in this context, as our streamlined
successfully reduced them by 80% product offerings have allowed us to
over the subsequent years, arriving at direct our resources and growth initiatives
just over 570 SKUs. more effectively.

106
2. Inventory optimisation

In our continuous pursuit of operational Additionally, we have automated the This approach allows us to predict future
excellence, we have achieved a noteworthy scheduling and planning processes, demand with greater precision and
milestone of reducing our inventory days. integrating our supply chain to allow proactively adjust inventory levels, thus
This strategic enhancement in working real-time decision-making to improve the minimising the risk of stock-outs and
capital management enables us to better overall efficiency. We have made significant excess inventory while ensuring the timely
adapt to fluctuating market conditions and progress in key projects, including availability of our products to consumers.
align our supply chain more effectively with the development of a future network
consumer demand. To achieve this, we have footprint for our distribution network and Our commitment to inventory optimisation
implemented several digitisation initiatives implementation of replenishment-driven remains steadfast as we continue to explore
across our manufacturing and supply chain sales strategies for our distributors. and implement innovative solutions to
operations. Among these initiatives is the drive efficiency, reduce costs, and enhance
adoption of a Transportation Management In parallel, we are continuously refining customer satisfaction across our global
System, which has helped us better manage our demand-forecasting capabilities by operations.
our transportation operations, optimise leveraging advanced analytics and historical
routes and loads, and lower freight costs. sales data.

Engaging with shopfloor employees

107
 3. Industry 4.0

We are investing in advanced automation Following the implementation of EMS, IoT implementation and digitisation
technologies and IT systems to enhance specific energy consumption has reduced initiatives play a crucial role in reducing
our manufacturing processes, minimise by 5%. Moreover, the system has change and set-up losses for all soap
manual intervention, and boost operational empowered our shop floor workers with lines, analysing frequent minor stoppages,
efficiency. reliable, on-demand access to data through creating history cards for major equipment
hand-held devices, replacing manual breakdowns, and guiding corrective and
In our North Cluster, we implemented a methods. preventive actions.
cloud-based computerised maintenance
management system software at our Katha We have successfully integrated IoT across In our South Cluster, we installed an
plant to strengthen onsite maintenance all five soap lines in our North Cluster. online visual inspection system featuring
practices. This system effectively manages IoT implementation in our production 360-degree cameras in the LV line at
maintenance and preventive maintenance lines has enabled real-time data analysis our Conso plant in Puducherry. This
activities by creating schedules, and facilitated timely decision-making to system detects defects in real time and
maintenance requests, and job plans. improve equipment productivity, reduce automatically ejects defective products,
Consequently, we have optimised spare manual intervention, minimise breakdowns, reducing the need for manual intervention
inventory and reduced maintenance costs. and enhance operational efficiency by and thus improving the quality of finished
identifying bottlenecks. goods. At the same plant, we have
Our Industry 4.0 digitisation initiatives have implemented an automated finished goods
not only increased productivity but also IoT implementation at our Katha soap plant loading conveyor system with automated
reduced energy costs. These initiatives align has significantly improved critical decision- counting, auto data push to SAP, and sales
with our environmental objectives while making based on data analytics, yielding a invoice operations in SAP. This automation
promoting longer equipment life. 6% increase in the plant’s OEE. Similarly, we tool has streamlined the booking process,
have incorporated IoT into both soap lines reducing both time spent and manpower
To effectively monitor energy and utility at our Kathua plant, yielding a 5% increase requirements.
consumption, we installed an energy and in plant OEE.
utility management (EMS) system at our
Katha and Kathua plants. Daily tracking
and analysis of plant energy data allow us
to take timely corrective actions to reduce
energy consumption, improve equipment
health, and establish comparative analysis
for various product SKUs.

108
IoT implementation at our
manufacturing facilities

109
 4. Sustainable manufacturing

Furthermore, we have installed a SMART By optimising our manufacturing processes, We track energy, emissions, water, and
coil feeding system in each line of our reducing waste, and implementing energy- renewable data for all the locations where
Coil-6, Coil-7, and Coil-9 units to decrease efficient technologies, we can minimise our we have 100% operational control. We are
manpower requirements. We have also environmental footprint and contribute now imbibing carbon and water pricing
incorporated an IoT-based flow-wrapping to a more sustainable future. We are to capture the financial implications of
system with smart feeding in Line-2 of Coil- driving sustainability initiatives across the our emissions and water use and build
9 to reduce dependence on manual labour. supply chain and even extending them sustainability into decision-making at every
At our Conso factory, we have installed to our vendors through our Sustainable point in the value chain.
an IoT-linked servo capper in the refill Procurement Policy.
line, eliminating quality defects caused by To measure our progress against our
broken wicks. As part of our Good & Green vision, we environmental goals, we use the standards,
have identified environmental sustainability methodologies, and assumptions entailed
In the North East cluster, we have launched goals to be achieved by the fiscal year in the ‘IPCC Guidelines for National
27 automation projects, including the 2025-26. We aim to make one-third of Greenhouse Gas Inventories, 2006’, and
introduction of flow wrap machines, all our products greener than those in the ‘IPCC AR6 Assessment Report’. Our
cartoning machines for LV lines, and filling 2020. We intend to source at least 35% of performance is guided by the sustainability
machines. These initiatives have reduced our energy mix from renewable sources, team at the corporate level and driven
manpower requirements and significantly improve energy efficiency by 100% in line by manufacturing cluster heads and team
improved the OEE of our operations. with our EP100 commitment, and maintain members at each of our manufacturing
Specifically, we have seen 13% and 7.6% a zero waste to landfill status. locations.
increases in the OEE of our Godrej Expert
Rich Crème and aer lines, respectively.

In the Central West cluster, we have

implemented 8 automation projects,
including flow wrap machines, soap banding
machine, and electric stackers for moving
finished goods.

These initiatives have led to a reduction

in manpower requirements and significant
cost savings.

110
Our processes include:

• Extensive meetings with multiple • Identifying and circulating best

stakeholders to align on priorities, practices on multiple platforms for
budgets, and expected benefits for wider adoption
the year • Strong governance mechanism
• Setting targets to help drive to monitor, review, and improve
environmental sustainability in our sustainability performance
manufacturing process and brands • Strategic improvement planning for
• Cascading an annual operating plan underperforming units
where sustainability targets are • An innovation cell to look at bleeding-
included in the key responsibility areas edge sustainability solutions for the
for ‘Green Champions’ medium to long term
• Using an internal sustainability • Participating in multiple ESG
monitoring tool to collect and analyse disclosures to measure our
data, and generating monthly reports performance against peers engaging
highlighting key indicators, including external consultants when required for
the carbon footprint as per the specific initiatives such as materiality
established GHG protocol or climate risk assessments

Optimising our manufacturing processes towards

contributing to a more sustainable future

111
 Our goals and performance for 2025-26

Energy* Water** Emissions***

Reduce specific energy consumption Reduce water intensity by 40% Reduce GHG emission intensity by
by 40% by 2025 (v. 2011 baseline) by 2025 (v. 2011 baseline) while 45% by 2025 (v. 2011 baseline)
maintaining water positivity
Increase renewable energy portfolio
to 35% by 2025 (v. 2011 baseline)
Approach
Approach
Approach • Adopting cleaner fuels such
• Innovative water management as biomass and continually
• Improvements in processes systems, technological improving process efficiencies
and increase in the efficiency improvements, and the
of systems integrated watershed
• Adoption of green energy management programme
sources such as solar and
biomass

• Upgradation of technologies Reduced our GHG emission

intensity by 48%
Reduced water intensity by 30%
and achieved water positivity
(through rainwater harvesting
within our facilities and our
Reduced our specific energy
community watershed programme,
consumption by 39%
we are conserving six times
Increased renewable energy more water than we use in our
portfolio to 31.6% operations).

112
Waste****

Sustainable packaging commitment

• Maintain zero waste to landfill and achieve zero liquid discharge

• Collect and recycle 100% of pre and post-consumer plastic

• Minimum 50-microns thickness of plastic product labelling to include the

thickness of plastic and extended producer responsibility (EPR) registration
details

• 20% reduction in packaging intensity

• 80% of plastic used to be recyclable

• Rigid plastics to be replaced by 30% recycled plastic by the fiscal year

2025-26. Flexible plastics to be replaced by 10% recycled plastic by the
fiscal year 2026-27 and multi-layer plastics to be replaced by 5% recycled
plastic by the fiscal year 2026-27.

Approach
• Judicious and innovative use of materials, including reuse and recycling and
greater circularity

• Establishment of a monitoring system to track and implement initiatives to

reduce plastic packaging consumption and intensity.

• Exploring vendors and enterprises to increase our use of PCR plastic

instead of virgin plastic

*Energy use is calculated by specific energy

consumption per tonne of production
**Water usage is calculated by specific water
Our specific waste to landfill has reduced by 100% consumption per tonne of production
(diverted 100% waste from landfill) ***Emissions are tracked for Scope 1 and 2
and calculated by specific GHG emissions per
We are plastic neutral in India and collect and recycle 100%
of pre and post-consumer plastic that we send out tonne of production
****Waste generated is calculated by specific
waste to landfill per tonne of production
113
 1. Energy
This year, our energy performance is
on track with our vision 2025. We have
implemented over 40 green initiatives
across all our locations.

Highlights from the fiscal year

2022-23:

• In the South Cluster, we transited conservation but also extends the • In the North Cluster, we have installed
from IE1- to IE4-rated motors in our motor service life, thereby enhancing 624- and 336-kWp capacity solar
MM Nagar manufacturing plant. The our overall operational efficiency. rooftop power plants in Kathua and
high-efficiency motors offer benefits Installing the energy-efficient IE4 Thana plants, respectively, which help
such as reduced power consumption, motors saves us over 71,600 kWh a us generate over 9 lakh units of clean
reduced operating temperatures, year. This is equivalent to emission energy per annum. This has built the
and decreased thermal stress on savings achieved by planting renewable energy porfolios of Kathua
motor components. The switch to IE4 approximately 960 trees annually. and Thana plants to 17% and 46%,
motors not only contributes to energy respectively.

Energy consumption (MWh) - India

Non-renewable Renewable

78,267

77,489

71,777 73,851

1,90,388

1,65,707

1,40,630 1,36,342

FY 19-20 FY 20-21 FY 21-22 FY 22-23

114
Energy consumption (MWh) - Global FY 22-23

Non-renewable Renewable

548

85,325

16,952

2,690

Latin America Indonesia Africa

No renewable energy at Indonesia and Latin America

Adopting solar energy to

power our factories

115
 2. Water
We have evaluated and implemented to source our water from sustainable
innovative projects to reduce our specific sources and have also supported
water consumption. Our performance is integrated watershed projects to replenish
in line with our set targets. We continue groundwater levels.

Highlights from the fiscal year

2022-23:

• In India, we have established a zero • In the Central West Cluster, we have

liquid discharge process at each of our installed a rainwater harvesting
plant locations. In the North Cluster, system in our new soap plant. This has
water processed through the common resulted in harvesting of approximately
effluent treatment and the ETP/STP- 15 lakh litres of water per annum.
treated water is recycled and used for • In Argentina, our team has
domestic purposes in our plants. implemented several measures to
• Similarly, in the South Cluster, we reduce water consumption in our
generate no process waste water. Our processes.
STP treats all waste water and recycles
it for domestic use. We ensure no
waste is discharged out of our plants.

Water consumption (million cubic meters) - India

0.495

0.305 0.291

0.257

0.328 0.336
0.370 0.370
0.000

0.158 0.153

0.202

0.158
0.116
0.093 0.088

FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 19-20 FY 20-21 FY 21-22 FY 22-23

Water withdrawal from municipal supplies Water withdrawal from groundwater Water processed and discharged to the source Total net water consumption
at higher quality levels

116
 Water consumption (million cubic meters) - Global FY 22-23

Withdrawal - Groundwater Withdrawal - Municipal supplies

7 0.06

6 6.57

1
0.14
0.05
0
Latin America Indonesia Africa

3. Emission
All our manufacturing units have Highlights from the fiscal year
implemented systems for monitoring GHG 2022-23:
emissions and short-term reduction targets
with the long-term aim of achieving Scope 1 • In the Central West Cluster, we have • We are committed to reducing our
and 2 carbon neutrality. installed 1,700-kWp shed solar panels. emissions in line with the global
This installation has resulted in the Science Based Targets initiative (SBTi)
Our initiatives on improving energy mix and generation of 25 lakh units of power and have set and submitted science-
reducing specific consumption have helped per annum, thereby helping us reduce based reduction targets for emissions
us reduce our GHG emissions. our GHG emissions. aligned with the Well Below 2 Degrees
• In addition to increasing renewable Scenario, which are currently being
Some of these initiatives include switching energy consumption, we have validated by the SBTi committee.
to renewable biomass for boilers, increased implemented a strong energy • We have set an internal science-
procurement of renewable energy, flue efficiency programme and set specific based commitment to be Scope 1
gas heat recovery from boilers for process energy reduction targets. To double and 2 net zero by 2035. We have
utilisation, and installation of energy- our energy productivity by 2030 as already implemented initiatives such
efficient equipment, among others. against the 2018 baseline, we are as community carbon mitigation
committed to the Climate Group’s programmes to be on track to net zero.
EP100 initiative.
More details on our net zero by 2035
commitments in the pillar ‘People and planet
alongside profit’.

117
 Scope 1 and 2 emissions (MT CO2 equivalent) - India

Scope 1 Scope 2

33,980 34,164
33,803

31,826

30,848

29,786

28,876

26,895

2019-20 2020-21 2021-22 2022-23

NOx and SOx emissions (MT NOx and SOx equivalent) - India

NOx SOx

8
165.1
162.3

136.4

73.4
88.8
77.7

60.5
54.5

2019-20 2020-21 2021-22 2022-23

118
 Scope 1 and 2 emissions (MT CO2 equivalent) - Global FY 22-23

Scope 1 Scope 2

11,307

1,603 16,282
71

851 7,779
0
Latin America Indonesia Africa

Scope 3 emissions (MT CO2 equivalent) - Global FY 22-23

Scope 3 emissions FY 21-22: 16,46,782 MT CO2e

Scope 3 emissions FY 22-23: 13,33,796 MT CO2e 0.04%

0.22% Category 8
Category 7 Upstream leased
0.10% Employee assets
Category 10 commuting
Business
23.50% travel
Category 1 0.41%
Purchased goods and services Category 5
1.37%
Waste generated
in operations Category 4
Upstream transportation
and distribution

4.69%
Others

1.28%
71.81% 1.27%
Category 11 Category 12
Use of sold products End-of-life treatment of
sold products

119
 4. Waste
We undertook several initiatives to reduce
Highlights from the fiscal year Moreover, we have reduced our plastic
waste generation and divert waste from
2022-23: intensity by 17% from 2017. We also
landfill. We continue to send ETP sludge intend to use PCR content within our
from our Malanpur plant for co-processing plastic packaging.
• In Nigeria, we have started
at a cement plant and have already
diverting waste materials from our
achieved a zero waste to landfill status in
manufacturing plants to recycling and
our India operations.
in the process we earned over ₹2.9
crore.
We are fully compliant with our EPR
• In India, we continue to maintain the
regulations. Our plastic packaging footprint
zero waste to landfill status.
is approximately 18,750 MT in India. We are
• In Kenya, South Africa, and
plastic neutral, which means we take back
Mozambique, we have started
the equivalent amount of plastic that we
diverting waste to recycling.
send out to our consumers. In addition, we
continue to invest in community solid waste
management programmes.

Waste disposal (MT) - India

Total waste recycled/reused Total waste disposed/incinerated

3
7,291 108
7,017

6,414

97

4,223

0
2019-20 2020-21 2021-22 2022-23

120
 Waste disposal (MT) - Global

Total waste recycled/reused Total waste disposed/landfilled

882

2000

1500
1,443

1000
42

755
500

75

0
Latin America Indonesia Africa

Packaging materials (MT) - India

Plastic Paper

34% 86%
recyclable recycled
plastic paper

Total plastic Total paper

18,750 MT 36,793 MT

121
 Addressing unmet
consumer needs

We are proud of our strong track record of We have adopted a stringent innovation
disruptive innovations, which has allowed us evaluation process that includes rigorous
to enter new categories and address unmet consumer trials and test markets. This
consumer needs. Often, this work has also process ensures that only the most
led to the development of new, distinctive promising products enter the market.
memorable brands. This approach maximises the chances
of success, leading to higher returns on
investment and long-term value creation
for our stakeholders.
Establishing winning products in
new geographies

GCPL’s geographic footprint comprises We forayed into the Household

some of the largest and fastest Insecticide category in Africa with the
launch of Goodknight Power Shots
growing emerging economies in the
world. However, our top categories
in these countries, such as Household
Insecticides, Air Care, and Hair Colour,
are underdeveloped, with significant
headroom available for growth. We see this
as a huge opportunity for value creation via
the application of our winning strategies
for category development through our
know-how in product, communications,
and activations.

We are focusing on designing products

that cater to local market preferences while
also having the potential for global appeal.
This enables us to leverage our intellectual
capital to create blockbuster innovations
that can travel across the world,
capitalising on global market opportunities
and ensuring long-term competitiveness.

We have already laid the foundation for

achieving this goal, cross-pollinating
Magic, our revolutionary powder-to-liquid
handwash, from India, Africa, Indonesia,
and Latin America, making it our first-
ever global product. Similarly, we forayed
into the Household Insecticides category
in Africa with the launch of Goodknight
Power Shots.

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122
Enhanced, digitally
enabled consumer insight

Central to our innovation strategy is our commitment to consumer centricity. By

augmenting our consumer insight capabilities, we empower our innovation team to
develop products and solutions that resonate with consumer needs and preferences.

Our enhanced consumer insight capabilities include:

1. Global structure 2. Standardised testing protocols

By fostering a global category structure that Implementing clear global testing protocols
promotes the sharing of insights and know-how and action standards ensures consistent,
across the organisation, we tap into a wealth of high-quality evaluation of our products and
knowledge that drives better-informed decision- innovations, minimising risks and maximising
making and strategic planning. the chances of success in the market.

3. Strong agency partnerships 4. Digital techniques

Building deeper relationships with critical Harnessing new-age digital techniques for
agency partners helps us leverage their consumer insights allows us to gather real-time
expertise and global scale, further enriching data, identify emerging trends, and react swiftly
our intellectual capital and supporting the to changing consumer demands. This agility
development of products that cater to diverse contributes to our competitive advantage and
consumer preferences. long-term growth potential.

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123
 Investments in R&D, design,
technology, and skills

Our state-of-the-art R&D centre at our is usually a capability outsourced in FMCG,

global headquarters, Godrej One, in we have chosen to build it internally and
Mumbai, is supported by local R&D teams make it a competitive advantage. The
who partner across geographies and share lab comprises highly skilled graphic and
learnings. At our in-house global Design industrial designers across geographies
Lab, we integrate design thinking and collaborating on projects.
transform product capabilities. While this

Our state-of-the-art global R&D centre at

our headquarters, Godrej One in Mumbai is
where we lead new product development

Sustainability built into our

products from Day 1

We continuously assess the sustainability of and analytics. Our R&D will continue to
our products from a life cycle perspective play a crucial role in creating innovative,
and use the insights to constantly re-shape high-quality products that are good for the
and strengthen our NPD framework. This people and the planet.
is also informed by the quantitative and
qualitative insights received through market
research, focus groups, consumer panels,

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124
1. Reconstitution portfolio

Our reconstitution portfolio plays a critical Magic handwash is a powder-to-liquid

role in creating innovative, high-quality handwash, and Magic Bodywash are
products that benefit both our customers liquid concentrate products that allow
and the environment. consumers to themselves add water to
the concentrate, transforming the product
Due to the high-water content of personal into a usable liquid form.
care products, tonnes of water are shipped
before production, and the finished
product is heavier while it is transported.
With Magic powder-to-liquid handwash, our sustainable and affordable
solution to handwashing, we are driving change in consumer behaviour
and fostering a greener, more responsible market.

This approach has several substantial Second, the lighter weight of our
advantages for the planet. First, by reconstituted products results in a 44%
removing water from our products, reduction in fuel consumption during
we reduce the overall weight of our transportation. In turn, this translates
product. This allows us to transport larger to a 44% decrease in emissions caused
quantities of our products with reduced by the transportation of our products
packaging requirements. Consequently, to consumers. By reducing packaging,
our reconstituted products require 84% fuel consumption, and emissions, we
less plastic packaging compared with the are ensuring positive impacts on the
traditional liquid versions of the same environment while continuing to deliver
quantity. This reduction in packaging high-quality, delightful products to our
minimises plastic waste as well as leads to a consumers.
more sustainable supply chain.

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125
 Usually, environmentally friendly products However, we firmly believe that the future
and packaging often come at a premium belongs to sustainable products accessible
price, catering primarily to a niche market to a larger audience. Our products are
of environmentally conscious consumers. priced affordably, and we are committed
to offering our innovative, eco-friendly
products at a green discount rather than
a premium price. We intend to make
sustainable choices more appealing and
affordable, driving a positive change
in consumer behaviour and fostering a
greener, more responsible market.

2. Natural portfolio

We have developed products that are They do not declare all ingredients and Our other examples include our natural
crafted primarily with natural ingredients contain harmful chemicals. They are not Household Insecticide products,
to differentiate our products from those approved by the Government of India’s Goodknight coils, liquid vapouriser, and
already available in the market and improve safety norms. When inhaled regularly, personal mosquito repellent. Our Hair
our market position. We have developed they can cause respiratory problems, Colour brand, Godrej Nupur, is a natural
at least one natural product in each of our especially in children and elders. Our henna-based hair dye. Our brands in Africa
categories. Goodknight Naturals Neem Agarbatti (TCB, Megagrowth, and African Pride) and
is composed of 100% natural neem and Indonesia (Stella and Mitu) have variants
Household Insecticides belong to a highly turmeric. It repels mosquitoes effectively that contain natural ingredients such as aloe
regulated product category that needs and is safe for use as it meets all vera and almond.
adequate regulatory approvals before necessary governmental approvals.
launch. However, many spurious mosquito
repellent incense sticks (agarbattis) are
available in the market today.
Goodknight Naturals Neem Agarbatti is
made of 100% natural neem and turmeric

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126
Supply chain
sustainability

According to our Good & Green goals, which we defined in 2015, we have put in
place our sustainability commitment expectations for our suppliers. This is detailed
in the GCPL Sustainable Procurement Policy. All our key suppliers are expected
to align with it and we are committed to enabling them to get there. Existing and
new suppliers are expected to conform to the expectations listed under the Policy.

We are committed to helping our suppliers make their operations

more sustainable with a focus on four parameters:

Ethically driven Social focused

• Business integrity • Human

and ethics rights • Responsible conduct with stakeholders

• Accountability and responsibility • Employee health and safety

• Legal and regulatory compliance • Local community development

Green inspired Quality Centred

• Green products and processes • Quality management systems

• Reduce, reuse, and recycle • Facility and machinery

• Adopting green initiatives and practices • GMP and • Material

quality controls management

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127
 As part of our supplier scoring process, we The progress on supplier assessment is
have collated qualitative and quantitative periodically shared with the Board ESG
data and developed a composite score Committee. With this accountability,
based on the responses. To drive we ensure suppliers are aligned to our
continuous adherence, we have scheduled Sustainable Procurement Policy and its
self-declarations from suppliers, as well as code, and there are no conflicts with ESG
external audits by a consultant. We have requirements.
identified category-wise targets, shared
industry best practices, and suggested
corrective actions and improvement plans.

Supplier screening for fiscal year 2022-23

538 125
Total number of Total number of
Tier-1 suppliers significant suppliers
in Tier-1

125
Total number of significant suppliers
(Tier-1 and non-Tier-1)

128
As part of supplier assessments in India, Of 114 vendors with historical scores, we To drive continuous improvement, we
we evaluated 119 suppliers in the fiscal saw an overall average 7.8% improvement have shared industry best practices and
year 2022-23 (accounting for approximately in scores and 63 vendors exhibited a suggested actions. We are also going to
71% of our procurement spends) on being positive improvement. None of the vendors start capacity building of suppliers with
quality-centred, ethically driven, green exhibited any non-compliance or substantial whom we engage to help them further
inspired, and socially focused. actual and potential negative impacts. their sustainability journey. Additionally, the
Hence, no suppliers were put on corrective sustainability assessment conducted using
plan or were terminated. a self-declared questionnaire has become
part of our new vendor initiation protocol.

71% 0
Total spend on Total number of
significant suppliers significant suppliers
in Tier-1 in non-Tier-1

119
Total number of suppliers assessed
covering 95% of significant suppliers

129
 People and planet
alongside profit

130
131
 People and planet
alongside profit

Environmental Natural Human Social and

Capital Capital Capital relationship capital

Key enablers Risks identified

• Developing a high-performing • Making greener • Changing consumer preferences

and diverse workforce products

• Investing in the health and well-being of communities • Regulatory • Climate change

132
Being a 'good' company is very important to us. Ten years ago, we made a promise
to build a more employable and greener world, and put people and planet
alongside profit. Today, we have placed this promise at the core of our strategy.

5.72 25% 71%

Human capital Women Suppliers
return on in senior assessed
investment leadership for ESG

6x 17% 1,598
Water Reduction in Malaria-free
positive plastic intensity villages

ESG
Focused product
portfolio

133
 The biggest challenges
of our time

Climate change and inequality are the In this increasingly uncertain world, we began Today, we have placed this promise at the
biggest challenges facing humanity. our sustainability journey with the good core of our strategy.
Together, these challenges are making the and green vision. Ten years ago, we made
world more volatile, affecting businesses, a promise to build a more employable and This strategic pillar is underpinned by three
supply chains, and communities. The greener world, and put people and planet key levers that will enable us to deliver on
Intergovernmental Panel on Climate alongside profit. our promise of placing people and planet
Change (IPCC) reaffirms that we need to alongside profit.
cut our global emissions by more than half
by 2030 to ensure a WB2DS scenario of
global warming by 2050. Due to historical According to the World Business Council for Sustainable Development (WBCSD)
and rising inequality, the impact of climate Vision 2050 report, 'Income inequality has risen sharply since 1980 – both
change is disproportionately higher in between and within countries. The richest 1% of the global population has
emerging markets such as the ones where captured 27% of economic gains, while the poorest 50% has captured only 12%.
we operate. The richest 1% now own 44% of global wealth. The poorest 50% own a mere
2%. Meanwhile, women remain nearly 100 years away from equality with men,
According to the latest IPCC report AR6, discrimination remains rife in many corners of society and more than 40 million
global GHG emissions at the current rate people are estimated to be trapped in modern slavery'.
will result in 1.5 degrees of global warming
over pre-industrial levels by 2035. This is
15 years ahead of the 2050 threshold.

The world over, the participation of

women in labour markets tends to CLIMATE CHANGE INEQUALITY
be lower than that of men. In India,
participation of women in labour is less
than 25%. Public health concerns have an
impact on the health of a nation. Wage
loss due to preventable diseases such as
malaria and dengue continues to plague
many of the geographies we operate in.
According to the latest The world over, the participation
IPCC report AR6, global GHG of women in labour markets tends
We believe we have a critical role to
emissions at the current rate will result to be lower than that of men. In
play in changing this scenario. Society,
in 1.5 degrees of global warming over India, participation of women in
environment, and business cannot operate
pre-industrial levels by 2035. This is 15 labour is less than 25%. Public
in silos. Being a responsible business,
years ahead of the 2050 threshold. health concerns have an impact
we are accountable for much more
on the health of a nation. Wage
to stakeholders, besides our financial
loss due to preventable diseases
performance. Sustainability is not new
such as malaria and dengue
to us. We have always maintained a
continues to plague many of the
sizeable part of our promoter holdings in
geographies we operate in.
Godrej Trusts that invests in education,
environment, and healthcare. Read the IPCC report AR6

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134
Developing a Making greener Investing in the health
high-performing and products and well-being of
diverse workforce communities

Our people are the bedrock of our We are continuously reducing the In our quest to strengthen our social
company. We are investing in our environmental impact of our products and relationship capital, we are
human capital and are committed and operations and assessing the focusing on three key areas of health
to building an inspiring workplace. sustainability of our products from a and well-being. We aim to create a
We aim to have zero fatalities lifecycle perspective. We use these more inclusive and equitable world
across our operations, have women insights in our product development by fostering sustainable growth,
represent 30% of our senior process to ensure that the products build strong relationships with our
leadership positions*, and continue created are good for both the people stakeholders, and contribute positively
maximising our human capital return and the planet. We aim to be Scope 1 to the communities we operate in.
on investment (HCROI). and 2 net zero by 2035.

1. We have reported zero 1. Reduce, Recycle, Replace 1. Partnerships that protect people
fatalities across all our approach to sustainable from vector-borne diseases: Our
operations packaging: 34% of our plastic flagship Elimination of Mosquito-
is recyclable, with a 17% Borne Endemic Diseases (EMBED)
2. Women represent 47% of the
reduction in the packaging programme, supported by the
total workforce
intensity from the fiscal year Governments of Madhya Pradesh,
3. Women represent 25% of 2019-20 Uttar Pradesh, and Chhattisgarh,
senior leadership position has reduced malaria incidence by
2. Completed life-cycle
4. Our HCROI is 5.7222 54% since 2015.
assessments (LCAs) of
products constituting over 2. Waste and water stewardship: Our
50% of our revenue waste programmes cover 6,34,000
people with source segregation
3. Innovating for greener
activities, process 1,786 tonnes of
products by building an ESG-
waste annually, and recycle 535
first product portfolio within
tonnes of plastics per annum.
our core categories to fulfil
environmental imperatives 3. Championing human rights: We
and cater to the changing have developed and rolled out
consumer preferences a human rights due diligence
through our reconstitution tool based on the UN Guiding
and naturals range Principles. We have assessed over
95% of our owned operations.
* Senior leadership comprises of L3 and L4 positions

21
135
 Developing a high-performing
and diverse workforce
Our people are the bedrock of our Critical enablers: Health,
company. We are investing in our human safety, and wellness
capital and are committed to building an
inspiring place to work. Health and mental wellness support and diagnostic facilities. An emergency
ambulance on call service has also been
1. We have reported zero fatalities across Ensuring the health and well-being of our enabled. The coverage extends to over
all our operations teams has continued to be our key priority. 2,500 pin codes and has recorded over
One of the areas we are focusing on is 1,000 downloads, with an average rating
2. Women represent 47% of the total
leveraging digitisation to make healthcare of 4.3/5. We have conducted extensive
workforce
more accessible. The Godrej Health and awareness building sessions for this,
3. Women represent 25% of senior Wellness app has been launched as a especially at our factories, to engage our
leadership positions one-stop application for all preventive blue collar employees.
4. Our HCROI is 5.722 healthcare needs across locations in
India. Some of the services as part of this Health in emerging economies is of
offering include a Doctor On-call service, pronounced concern globally. The
medicine delivery, as well as laboratory consequences are more severe for women

‘Stop the Snore’ campaign organised to spread

awareness around obstructive sleep apnea

136
 Godrej Health and Wellness,
our one-stop app for all
preventative healthcare needs

because of complex socioeconomic We also organised multiple health sessions

structures that lead to the lack of across our offices to create holistic health
preventive diagnosis and appropriate care. awareness. A major campaign around
In line with our intent to create lasting obstructive sleep apnea called ‘Stop the
impact, we wanted to nurture active Snore’ was conducted across all locations.
conversations around areas of women’s
health that are underserved and initiate Furthermore, we have an onsite medical
tangible steps to directly impact women centre, hospital, children’s day care facility,
team members and women dependents. and women’s resting and breast-feeding
facility at our headquarters in Mumbai.
We launched EmpowerHer that conducts
awareness drives and health camps for
issues such as biases against women,
menstruation, PCOS, menopause, gender
transitioning, and mental well-being. It also
has tie-ups with healthcare professionals.

Women and Wellness, an internal awareness

Health camps for our women employees campaign around International Women’s Day 2023

137
 We have partnered with Amaha, a mental We have extended this to dependents of
health platform, to create an Employee Godrejites, including parents, partners,
Assistance Programme that offers siblings, and children. We are also
confidential mental wellness services. encouraging open conversations around the
Through this service, our team members importance of mental health by organising
can avail personalised plans with multiple webinars with senior therapists and leaders
resources such as self-help, short daily on self-care strategies, strengthening
courses, articles, activities, and access to relationships, social media, and mental
trained therapists. health, among other themes.

Wellness initiatives in collaboration with

Amaha, our mental wellness partner

Hybrid ways of working

As the COVID-19 pandemic situation This meant working in office for 3 days a
across our locations improved, we week, with added flexibility on a need-to
restarted our hybrid working approach for basis. We stay committed to making Godrej
team members in roles where work could a more agile and inclusive workplace, and at
be delivered remotely and did not require the same time, improving productivity in a
continued physical presence in office. more focused manner.

138
Occupational health and safety Our safety and health improvement plan has four pillars:

We continue to focus on inculcating a

culture of safety and health and creating
an incident-free organisation. In line with
this vision, we invest in world-class safety
infrastructure and implement best-in-class
safety systems. Occupational Health and
Safety (OHS) Policy serves as a guiding
1. People and culture 2. Safety infrastructure
framework to ensure a safe and healthy
workplace.

This encompasses aspects such as

competent OHS organisation, safety
culture and awareness, hazard identification
and risk assessment, risk mitigation
and controls, continual improvement,
loss prevention, accident investigation,
emergency management, health and
hygiene, and safety performance
measurement tools. 4. OHS management
3. Automation, technology,
system
We have implemented an innovative and artificial intelligence
(based on various health and safety
assessment and scoring matrix to evaluate
standards, including ISO 45001)
the performance of our OHS management
system—to gauge the comprehensiveness
and effective implementation of the four
pillars and ensure its seamless integration
into our operations.

To support our ongoing improvement

efforts, we have established a well-defined
and measurable internal and external
audit system. This process has allowed
us to identify best practices and uncover
enhancement opportunities that in turn
ZERO
Employee
contribute to the continuous improvement
fatalities
of our health and safety initiatives.

ZERO
Contractor
fatalities

We reported zero employee and

contractor fatalities in the last 3
years across our geographies
139
 In last few years, we have made significant In fiscal year 2022-23, we were also able However, we have seen an increase in
changes in our incident reporting protocol, to ensure a 20% reduction in LTI numbers LTI numbers at one site each in India
including moving from Indian standard in GAUM. Most of our sites in India and and Latin America. We have taken all the
of reportable accident to LTI reporting. SAARC and Indonesia also sustained zero corrective and preventive actions across
Along with leadership focus, we have also LTI in the last 2 years. all our manufacturing sites to prevent any
increased awareness at all levels around reoccurrence.
incident classification and reporting.
Reporting all incidents is a cardinal rule for
us. All these have helped us enhance our
reporting.

As a company, we have been investing

heavily to upgrade our safety infrastructure.
Consequently, we are at a zero-fatality
record since the last 2 years. We have
also not had any major fire or any other
significant property damage.

Lost-time injury Unit FY 19-20 FY 20-21 FY 21-22 FY 22-23

frequency rate
(Global consolidated data)

Employees and LTIFR (n/million 0.103 0.185 0.716 0.987

contractors hours worked)

LTIR (n/200,000
hours worked)

140
 We are committed to creating a culture
of safety across all our operations

Critical enablers: Diversity,

equity, and inclusion

We believe that a diverse and inclusive We take pride in being an equal

workforce is core to drive and maintain our opportunity employer. We recognise
competitive edge. It allows us to tap into a merit and encourage diversity. We respect
broader range of perspectives, skills, and human rights of every individual. We do
experiences, which, in turn, helps us to not discriminate on the basis of gender,
better understand and cater to the needs of sexual orientation, gender identity, religion,
our consumers. As a global conglomerate, political opinion, nationality, race, colour,
with a vision to delight over 2 billion social origin and status, indigenous status,
consumers, becoming inclusive is not just disability, age, or any other personal
in our DNA and the right thing to do, but it characteristic or status. We do not tolerate
also makes an excellent business sense. disrespectful or inappropriate behaviours,
harassment, intimidation or unfair
treatment, or retaliation of any kind.

141
 Women and leadership

Women represent 47% of our total workforce. Because of our efforts to foster a
holistic, supportive workplace, the share of women in all management positions is
32% and that in top management positions is 25%. We are committed to fostering a
diverse GCPL and aim to have 30% women representation at senior leadership.

% of total
workforce

53% 47%
men in total women in total
global workforce global workforce

32%
women in all
management
positions

35% 25% 26% 41%

women in junior women in senior women in revenue- women in
management management generating management STEM-related
positions positions positions positions

142
Building the next generation of
women leadership in Sales

A challenge faced by organisations like ours for women. The goal of this programme
has been the lack of women representation is to onboard a selected cohort of women
in functions like field sales. In our India talent and train them in functional skills
business, we have actively tried to bridge through on-the-job learning and leadership
this gap by focusing on hiring more women guidance. We hosted an open source hiring
in field sales roles, but we have found it to tap into new MBA graduates and lateral
increasingly difficult to build and nurture hires from across industries.
this talent pool over a sustained period.
To hire, train, and induct more women
into Sales, we have launched Aarambh, a
sales training programme built exclusively

Our cohort of trainees engage with the Godrej

leadership as part of Aarambh, our sales training
programme built exclusively for women

Menstrual wellness for An inclusive ecosystem of policies

women in field sales roles and awareness building

We believe in fostering a culture of trust, To support our women team Apart from our maternity benefits and day
respect, and acceptance. Through our members, we are: care facilities, we have a Caregiver Travel
conversations regarding different needs of Policy, which enables new mothers to bring
• Encouraging women to make use of
men and women, we identified the need a caregiver and children up to 1 year of age,
our unlimited sick leave, whenever
for women to be able to take time off from for necessary work-related travel.
required
travel or work during menstruation. This
• Encouraging women to avail work
need was more pronounced for women in To help build a culture of inclusion among
from home options in field sales roles
field roles, where the exertion of outdoor senior leaders and managers, we organised
• Improving the existing infrastructure
work, coupled with limited or no access ‘Winning with Empathy’, a conversational
such as the availability of clean
to clean and hygienic washrooms, causes and reflection-based workshop on
washrooms at our major distributor
extreme discomfort. unconscious biases. Through the workshop,
points
we focused on bringing unconscious biases
Our Sales Leadership Team also hosted among team managers to the surface,
sensitisation workshops on menstruation- building the emotional intelligence of our
linked challenges faced by women in field people managers, and creating an inclusion
sales roles. framework for managers.

143
 Gender pay analysis

We recognise the significance of We are taking proactive steps to By addressing the gender pay gap, we are
fostering an equitable and inclusive work address any identified pay disparities. not only promoting fairness and equality
environment, which includes addressing the Our approach includes: within our workforce but also creating a
issue of gender pay disparity. more inclusive environment that will drive
• Continuously reviewing our
innovation and contribute to our long-term
compensation policies and practices to
We are committed to ensuring fair and success.
ensure fairness and transparency
equal compensation for all our team
• Implementing targeted measures, such
members, regardless of their gender. We remain dedicated to enhancing our
as training programmes and career
efforts to close the gender pay gap and
development initiatives, to support
We conduct regular gender pay gap foster a workplace where all employees have
the growth and advancement of our
analysis for all our employees at all levels equal opportunities to grow and succeed.
female employees
of our company. These assessments are
• Fostering a culture of diversity
designed to identify any pay discrepancies
and inclusion through effective
that may exist between male and female
communication, education, and
employees, which cannot be explained by
employee engagement initiatives
merit-based criteria applied consistently
over the years.

India gender pay parity

152 lakhs
Average women salary in lakhs

Average men salary in lakhs

128.3 lakhs

67.1 lakhs

31 lakhs 62.5 lakhs

9.9 lakhs

30.9 lakhs

8.9 lakhs

Level 1 Level 2 Level 3 Level 4

Mean difference (-10%) Mean difference 0% Mean difference +7% Mean difference (-16%)

144
Building ethnic representation

Sub-Saharan Africa is a key geographic pool is critical. Therefore, we are actively

cluster for us. We are deeply committed to encouraging local, ethnic hiring across
building a very purposeful and successful roles. Non-Indian representation in senior
company in Africa. Given the nature of leadership roles has increased from 33% in
the business that we are operating in, the fiscal year 2021-22 to 40% in the fiscal
building a representative, diverse talent year 2022-23.

Top 5 workforce nationalities

Indians
Our operations Top nationalities

56% of total workforce

58% of all management positions

Indonesians

17% of total workforce

22% of all management
positions
Argentines

5% of total workforce
5% of all management positions

South Africans

2% of total workforce
3% of all management positions
Nigerians

4% of total workforce
3% of all management positions

145
 40
35

Representation in
22 senior leadership roles
33

22
17
Indian
16

18 Non-Indian
13

FY 20-21 FY 21-22 FY 22-23

Representation of
non-Indian talent

Overall Representation 80%

Manufacturing 76%

Finance 71%

Marketing 90%

146
Becoming more diverse and inclusive

LGBT+ inclusion Prevention of sexual harassment

Our well-defined Equal Opportunity At Godrej, we are deeply committed People of all genders, gender identities,
Policy and a Gender-neutral Anti-sexual towards enabling a safe and inclusive and sexual orientations can file complaints.
Harassment Policy aim to protect the rights workspace for all our team members, We have introduced an online platform for
of our lesbian, gay, bisexual, transgender, customers, clients, partners, visitors, and redressal to ensure stronger governance.
queer, and intersex team members. We other members of our communities and We continue to build awareness through
have extended medical benefits, such as ecosystem, who interact with us. This specially designed, compulsory trainings for
hospitalisation cover, to domestic partners year, we reviewed and strengthened our Redressal Committee members and all
of Godrejites. We allow any team member our Anti-sexual Harassment Policy and Godrejites at regular intervals.
to choose a spouse/domestic partner as processes across our geographies with
a dependent. This also covers same-sex the help of local HR teams and legal
dependents, AIDS patients, and fertility experts. Our policy is gender-neutral
treatments. Our Adoption Policy, too, and not limited to women.
is designed keeping a gender-neutral
primary caregiver in mind. We have a
Gender Affirmation Policy to support
team members who wish to undergo
gender transition. Godrejites can claim Our refurbished anti-
reimbursements towards non-cosmetic sexual harassment
surgeries and hormone replacement training module
focuses on building
therapy.
awareness around
sexual harassment at
We are reviewing amenities and the workplace
infrastructure facilities for LGBT+ team
members. As the first step, we have
established two gender-neutral washrooms
at our headquarters, Godrej One, in
Mumbai. The Godrej Group was also one
of the two Indian companies to win ‘gold’
in India’s first LGBT+ work quality index
by the British LGBT+ advocacy group
Stonewall, India’s LGBT+ rights Keshav
Suri Foundation, and LGBT+ inclusion
consultancy Pride Circle. On 13 December
2018, we launched a ‘Manifesto for
Trans Inclusion in the Indian Workplace’.
Through this programme, we highlighted
the position and circumstances of trans
people in the Indian society and the steps
corporate India can take to improve them.
Complaints on Complaints filed Pending resolution at
sexual harassment the end of the year

FY 21-22 4 0

FY 22-23 5 2
147
 Critical enablers:
Talent development

We invest in the continuous training and Living the ‘Godrej Way’

development of our employees, ensuring
they possess the skills and knowledge The Godrej Way, which we call our purpose Our employee value proposition takes much
required to excel in their roles. and values, is the cultural cornerstone pride in fostering an inspiring workplace
We aim to nurture value-based, high- that guides our choices and actions. We with an agile and high-performance culture
performing leaders to guide our growth continue to explore ways to build a more to attract, develop, and retain the best
ambitions by enhancing the effectiveness purposeful Godrej for all our stakeholders. global talent.
of leadership and building a future-ready
leadership pipeline.

Our beliefs on leadership, careers,

and capability development

Leadership development across levels

We host customised journeys for key These programmes are designed

cohorts at different leadership levels, which with inputs from internal and external
incorporate multidisciplinary elements stakeholders, best practices from other
for immersive experiences: reflective organisations doing contemporary work
conversations with mentors and coaches, in this space, as well as the common
perspective sharing through structured developmental themes emerging at Godrej.
forums, facilitator-led masterclasses, There are two tracks—a cohort track
self-paced learning, and differentiated where the entire batch comes together—
experiences through capstone projects to and an individual track customised to a
apply learning on-the-job. participant’s specific learning needs.

148
Management trainees Mid-level managers Senior leadership

Insignia is a 12-18 month learning Propel is a 12-month leadership Accel is a 12-month development
journey for management trainees development journey for mid-level opportunity for senior leaders at
who join us from business schools. managers. Currently introduced Godrej Industries. This programme
While they undergo structured in India for 21 participants, it helps them understand more
business inductions and cross- will now be implemented across deeply the capabilities required
functional learning stints, this all geographies. The aim of this for the next leadership level
learning programme, which runs programme is to help participants and learn to action the change
in parallel, initiates the early sharpen their ability to deliver through capstone projects. This
development of critical capabilities value across all Godrej Capability programme involves a mix of
and strengthens engagement. Factors (our leadership capability masterclasses and one-on-one
framework) through a journey coaching with external coaches,
of holistic development— mentoring by Godrej leaders,
masterclasses, mentoring by the and actioning change through
leadership team, and immersive capstone projects. It is also an
learning through exposure to opportunity to build strong
strategic projects. networks across the Group.

Investing in our people through

customised L&D programmes

149
 On average, our employees spend 77 hours on training and
upskilling. We spend an average of ₹4,33,000 for training every
employee on skill upgradation, health and safety, prevention of
sexual harassment, and other human rights issues.

Workers 93%

Non-management level (L1) 100%

Management level (L3 and L2) 100%

Executive level (L4) 100%

Trainings covering
% of women

Trainings covering
% of men

Executive level (L4) 100%

Management level (L3 and L2) 100%

Non-management level (L1) 100%

Workers 89%

150
HCROI

We recognise the value that our By regularly monitoring and analysing

employees bring in and are committed our HCROI, we are better equipped to
to maximising their potential to drive our identify trends, evaluate the effectiveness
growth and success. To gain insights into of our human capital strategies, and make
the effectiveness of our human capital data-driven decisions to enhance the value
investments, we measure our HCROI, a derived from our workforce. This approach
key metric that helps us understand the allows us to optimise our investments
profitability of our organisation in relation in talent development, recruitment, and
to total employee costs. retention, thereby ensuring we continue
to build a skilled, engaged, and diverse
A higher HCROI indicates that we are workforce that drives us forward.
effectively leveraging our human capital to
generate greater value from our workforce.

FY 19-20 FY 20-21 FY 21-22 FY 22-23

Total revenue 54,744,508,957 62,543,352,310 69,515,608,458 76,671,727,945

Total operating expenses 41,660,800,000 47,097,701,698 53,165,052,855 59,094,502,111

Total employee- related 10,091,600,000 4,170,900,000 3,475,176,893 3,721,832,838

expenses (salaries + benefits)

HCROI (a − (b−c))/c 2.296 4.703 5.704 5.722

Engaging meaningfully

Our senior leadership team engages We continue to leverage Amber, a chat

through different platforms, including bot, to interact with team members across
town halls and one-on-one conversations. geographies. Currently, 1,800 people
To understand the pulse of our company are being reached out through Amber.
in real-time for taking immediate action, Through this platform, we capture people’s
we made a shift and continued to move experiences at a defined frequency based
from static point in-time conversations on their tenure in the company. The
and surveys to a culture of continuous feedback has helped us take both faster
listening aim. individual actions and make organisation-
level changes based on emerging themes.

151
 Trend of employee well-being

We are above the industry benchmarks. While we use engagement data for insights and
action planning, our intent is to maintain engagement scores year-on-year.

Unit FY 19-20 FY 20-21 FY 21-22 FY 22-23

Employee % of employees 77 86 86 85
engagement with top level
of engagement,
satisfaction,
well-being, or
employee net
promoter score
(eNPS)

Employee turnover rate

FY 19-20 FY 20-21 FY 21-22 FY 22-23

Total employee 17.1 11.5 23 27.4

turnover rate

Voluntary employee 9.1 4.9 15 15.8

turnover rate

152
Workplace by Facebook is our in-house Themed around ‘Asking the right
social media and engagement platform that questions?’, our leaders came together
helps us stay connected with our teams to not only reflect on the year that
globally. This year, we had 56% active users was but also collectively reinforce our
and 12.6% engaged users. ambitions for the future, including our
commitment towards becoming more
The Godrej Leadership Forum is our sustainable and inclusive.
annual leadership conclave that brings
together senior leaders from across Godrej
businesses for a day of learning, sharing,
and reflections.

Learning and sharing at the

Godrej Leadership Forum

The GCPL Leadership Meet themed A large part of the day was spent in a
on ‘Lead and Inspire’ brought together workshop on identifying and crafting the
the senior leadership team from across legacy that each leader wants to create in
geographies to reflect on the year and the role they are.
key priorities to build on going forward.

GCPL Leadership Meet brings together

senior leadership from across the globe

153
 Freedom of association Innovative approach to recruitment

We recognise the importance of our Through our ongoing engagement with We continue to build an engaging, inclusive
employees having the opportunity to voice employee representatives, we strive to employer brand on business school
their concerns, opinions, and suggestions. address various workplace concerns, such campuses. In line with reflections from the
By fostering a strong dialogue between as working conditions, health and safety, previous year, we recrafted Godrej LOUD
employees and management, we can and growth development opportunities. (Live Out Ur Dream), our engagement
create a more engaged, empowered, and This collaborative approach enables us platform, as an immersive experience
productive workforce. to continually enhance our workplace around various touchpoints. We had 99
policies and practices, ensuring they remain students from 8 business schools in India
In line with this commitment, over 90% relevant, equitable, and supportive of our who joined us for a curated experience
of our eligible employees are members employees' needs and aspirations. comprising leadership discussions and
of recognised employee associations or business immersions. Of them, we selected
collective bargaining groups. We are committed to build a workplace 34 students, and 50% of them are women.
where all our employees feel valued, heard, Through our conversations, we encouraged
We are dedicated to maintaining an open and empowered to contribute their best. these young people to reflect on their
and inclusive work environment, where all We maintain strong relationships with personal purpose and values and the kind
employees have a platform to express their employee associations to address the of change they can drive in our world. The
views and actively participate in shaping diverse needs of our workforce and create a conversations were driven by the belief that
company policies and practices. thriving workplace culture that drives long- purposeful, determined young people can
term value for our stakeholders. grow into future leaders at Godrej.

Engaging with business school

students at Godrej LOUD

154
Hiring for potential: Programme NEO

To hire and onboard talent from on potential and value-fitment, we hired senior leadership connects, value chain
diverse academic and work experience and onboarded 10 candidates who joined immersions across Sales and Supply
backgrounds, we launched Programme functions such as Sales and Marketing, Chain, and classroom sessions, to build
NEO. Through NEO, we invited applications Supply Chain, IT, and HR. The batch has competency on key behavioural aspects
from experienced professionals who had received various upskilling and training essential to the role.
studied at top universities and wished to inputs, such as FMCG masterclasses,
reimagine their career journey. Assessed

FY 19-20 FY 20-21 FY 21-22 FY 22-23

Total number of new 360 261 462 481

employee hires

Percentage of open 12.1 7.8 5.4 11.9

positions filled by internal
candidates (internal hires)

Average hiring cost (₹) 1,33,000 1,11,000 1,66,965 56,772

Recognising and celebrating high performance

Regular performance evaluations and These performance reviews enable our feedback from an employee's peers,
feedback are essential for employee employees and their managers to engage subordinates, managers, and sometimes
growth, development, and success. To in meaningful conversations about past even clients, providing a well-rounded
ensure our employees receive the support accomplishments, areas for improvement, perspective on an individual's performance,
required to excel in their roles, we have and future aspirations. leadership capabilities, and interpersonal
implemented a robust performance review skills.
system. For mid-management and above levels,
we complement the performance review
All eligible employees undergo annual process with a 360-degree feedback
performance reviews, which are designed system. This holistic approach gathers
to provide constructive feedback, set clear
objectives for the coming year, and identify
opportunities for personal and professional
development.

155
 Performance and career development reviews of employees

Management Management 360-degree Team-based Agile conversations

level appraisals by feedback performance (>bi-annual reviews/
objectives (%) (%) appraisal (%) conversations) (%)

Executive level 100 100 100 100

(L4)

Management level 100 100 100 100

(L3)

Management level 100 0 100 100

(L2)

Non-management level 100 0 100 100

(L1)

The Godrej Way Awards The Godrej Awards 2023 Making greener products

To recognise people for behaviours in line The Godrej Awards, organised across the We are continuously reducing the
with our values—Trust, Be Bold, Show Godrej Group, is dedicated to recognising environmental impact of our products
Respect, Own It, Be Humble, and Create outstanding performers. We felicitated and operations and assessing the
Delight—we organise the Godrej Way our winning team members at a special sustainability of our products from a
Awards every quarter in India. event in our Mumbai headquarters. lifecycle perspective. We use these
insights in our product development
process to create products that are good
for both the people and the planet.
Superstar Awards Being among the best
companies to work for
The most prestigious awards at GCPL in
India, the Superstar Awards, recognise We have been among the best companies

the excellence of our team members to work for. We were one of Great

across all business functions. Place to Work® Institute’s (India) Best

Workplaces in Manufacturing (2022) for
creating a high-trust, high-performance
culture. We were also recognised as one
of the Best Organisations for Women
2023 by the Economic Times for our
efforts towards creating a diverse and
inclusive GCPL.

156
 Recognising talent and performance
at the Godrej Awards 2023

We were one of
Great Place to Work®
Institute’s (India)
Best Workplaces in
Manufacturing (2022)

157
 Our commitment to SBTi

We have submitted GHG emission We aim to continue reducing emissions by

reduction targets to SBTi for validation. continuously upgrading to energy efficient
We have evaluated the reductions required technologies and processes and increasing
in our emissions (Scope 1+2+3) and have the use of clean energy by shifting from
committed to reducing these emissions in fossil fuels to renewable fuels, such as
line with the global target determined by biomass, captive solar, rooftop solar, open
the SBTi standards committee. access purchase, cogeneration, and green
storage. We are also exploring low-energy
SBTi’s standards are the world’s first water recovery systems and nature-based
science-based certification of companies' climate solutions for carbon capture.
emissions reduction targets in line with
the Paris Agreement's goal of keeping
planetary warming to 1.5 degrees Celsius.
The targets provide a clearly defined
pathway for companies to reduce GHG
emissions and help prevent the worst
impacts of climate change.

Net zero by 2035

We have set an internal science-based commitment to be Scope 1 and 2 net zero by 2035. We have already
implemented initiatives such as community carbon mitigation programmes to be on track to net zero.

Assumptions: Emissions SBT

Consistent reduction in the grid emission factor by 6%
Annual energy efficiency improvement of 2%

95,432 MT CO2e

59,645 MT CO2e
59,645 MT CO2e Science Based Target

54,321 MT CO2e
Expected offsets

34,151 MT CO2e
Expected emissions

Our projected emissions roadmap

158
We have a three-pronged approach towards reducing our emissions
and are moving towards net zero carbon or carbon neutrality:

Improving energy efficiency Increasing use of Offsets

renewable energy
We reduce emissions by improving We reduce emissions through
the resource efficiency of all our We increase the use of renewable community-based waste
processes, thereby minimising energy by using briquette-fired management projects to divert
the use of energy, water, and boilers and microturbines for organic waste from landfills or
raw materials despite increasing steam, investing in solar PV to incinerate and use them for
productivity. We also streamline installation, and applying for biomass production. We invest
the capacity of our equipment green tariffs where available. To in afforestation in degraded land
to ensure optimal utilisation and further improve circularity in this parcels for carbon sink creation
transition to the use of briquette- area, we enrich and sell biomass and carbon sequestration in our
fired boilers rather than furnace ash generated by the briquette existing watershed projects.
oil-based boilers at our facilities. boilers to local farmers for use as This not only conserves water
We believe in open collaboration a fertiliser. and stores carbon but also
with our supply chain partners reinvigorates natural ecosystems,
and share our best practices and preserves biodiversity, and
experiences with them through improves livelihoods for local
our Sustainable Supply Chain farmers.
programme. This programme also
includes periodic audits of their We are also signatories to
sustainability performance. the EP100 global framework
developed by the Climate Group,
where we have committed to
halving the energy intensity of our
operations by 2030, as against the
baseline set in 2012. Currently, we
have reduced our emissions by
close to 40% and intend to reach
the 50% target well before 2030.

159
 Reduce, Recycle, Replace approach to Highlights in sustainable packaging for
sustainable packaging the fiscal year 2022-23

Over 34% of our plastic is recyclable. Carton packaging for our Goodknight
We have reduced our plastic packaging Liquid Vapouriser refills contributed to
intensity by 17% since the fiscal year 3,500 MT of our plastic packaging. It falls
2019-20. under category III plastic under the EPR
regulations. We converted these metalised
In addition to our good and green targets, cartons to non-metalised cartons. This
at a company level, we have identified resulted in three-fold benefit—one, we
sustainable packaging targets. reduced our plastic packaging consumption
by 3,500 MT. Two, we reduced our EPR
Read more about our commitment obligation by 3,500 MT, and three, we
and progress against targets in Radical achieved significant cost savings over this
simplification > Sustainable Packaging project.
Commitment

Innovating for good and green products

This involves building an ESG-first product We aim to complete LCAs of more than
portfolio within our core categories to fulfil 80% of our products by revenue by
environmental imperatives and cater to the 2025. LCAs help us assess the step in the
changing consumer preferences through value chain at which we can minimise our
our reconstitution and naturals ranges. environmental impact on all fronts—energy,
water, plastic, and waste. We are also
We aim to carry out LCAs for our major identifying and testing alternate packaging
products that cover 80% of our revenue materials and increasing the use of PCR
by the fiscal year 2025-26. Further, we will plastic to move away from virgin plastic.
implement the findings of the assessment Apart from just regulatory compliance
to manufacture greener products and with the EPR plastic waste management
implement a sustainable framework for all guidelines, we are working on innovations
new product developments. in formulation, design, and delivery models
to lower our plastic footprint.
Highlights from the fiscal year 2022-23
Read more about our green innovation and
• We completed LCAs for 6 products green products in Radical simplification >
that constitute over 50% of our Sustainability built into our products from
revenue day 1
• For Goodknight Coils, we completed
trials using PCR plastic for Coil poly
bags
• For Goodknight Xpress Liquid
Vapouriser, we explored PCR PET
sources and tested trails.

160
Human rights in the workplace

GCPL is committed to ensuring human • Undercutting all this is the culture In accordance with our ongoing
rights as part of our vision to help build of Godrej, and the HR team plays a commitment to upholding human rights
a more equitable, inclusive, and greener stewardship role in enabling a culture in our operations, we have identified and
world. Our respect for and commitment of respect, dignity, and empathy. Our addressed gaps through self-assessments
to human rights is central to our values. culture is encapsulated in our values and have taken proactive measures to
We believe that our primary human rights and is part of how Godrejites are strengthen labour contracts for our contract
responsibilities are towards our employees, assessed and evaluated on an annual workers in India. In addition to adhering
the communities where we operate, basis. to local labour laws, we have introduced
suppliers and business partners, and • Our Sustainable Supply Chain policy stricter terms and conditions, focusing on:
customers and consumers. focuses on responsible conduct with
all stakeholders, employee health and
Our commitment to human rights is safety, local community development,
reflected in our Human Rights Policy, business integrity and ethics, and
Sustainable Supply Chain Policy, Anti-sexual human rights. The PSO team works
Harassment Policy, and Code of Conduct with suppliers to ensure adherence
for Employees, Senior Managers, and to the policy. While a third party is
Directors. These policies are available on involved in the audits, the PSO team
our website. regularly engages with the suppliers to
encourage and share best practices.
GCPL has integrated human rights across
its businesses by creating a multi-pronged In the fiscal year 2022-23, GCPL undertook
approach starting from Board oversight the following activities to ensure that
to implementation by operations teams, human rights commitments are met:
monitoring by audit teams, and ably
supported by HR at all levels. • All new recruits certified that they
understand and accept the GCPL Zero tolerance

• GCPL has a dedicated Board-level Code of Conduct, which includes our for discrimination

committee for ESG where human Human Rights Commitment.

rights is the key topic of discussion. • We conducted a self-assessment
The committee meets bi-annually to across our plants and locations in India
Zero tolerance
review the risks associated with ESG, and Indonesia, covering 93% of our
for forced labour, with an
mitigation strategies, and emerging blue collar workforce.
emphasis on not withholding
areas of focus. • In India, we have conducted third-party
workers' ID papers, no
• The Internal Audit team is responsible audits comprising 128 suppliers so far
recruitment fees, and ensuring
for compliance to all local laws (accounting for approximately 70% of
no workers are indebted or
and our Human Rights Policy. They our procurement spends). None of the
coerced to work in any manner.
periodically review operations across suppliers were non-compliant.
all geographies and help ensure the
highest levels of adherence.

161
 To further our human rights mitigation and Going forward, we aim to work on some
remediation efforts, we have established of our salient human rights commitments
a cross-functional working committee with the support of our stakeholders. In the
consisting of representatives from various fiscal year 2023-24, we commit to:
functions and clusters. This committee is
• Articulate our ambition to work on
responsible for driving the implementation
select salient aspects such as ensuring
of human rights mitigation plans across our
our own processes and supply chain
operations.
are free from forced labour
• Create an action plan for all sites to
As of April 2023, 29% of our manufacturing
achieve the stated ambition
sites have successfully incorporated these
• Use the fiscal year 2022-23 self-
human rights mitigation plans. Our aim
assessment data as baseline and
is to continue expanding these efforts,
report progress
ensuring that all our facilities adhere to the
highest standards of human rights and fair
labour practices, thereby demonstrating
our unwavering dedication to creating a
positive, inclusive, and empowering work
environment for all our employees and
partners.

Protecting people from vector-borne diseases

Project EMBED was started in 2015 in We worked in each location for 3 years, In the fiscal year 2020-21, we initiated
Madhya Pradesh in partnership with the spreading awareness among households interventions on dengue and chikungunya
Ministry of Health and Family Welfare’s and people at the bottom of the pyramid prevention in urban areas of the
National Centre for Vector-borne and vulnerable and marginalised groups. aforementioned three states. Our urban
Diseases Control (erstwhile NCVBDC), In the fiscal year 2022-23, the malaria dengue and chikungunya project, spread
focusing on malaria elimination, in line elimination project ran across 9 districts: across nine cities, focuses on increasing
with the Government of India’s mission Balaghat, Sheopur, and Shivpuri in Madhya the awareness of urban poor communities
to eliminate malaria by 2030. Over the Pradesh; Badaun, Bareilly, Mirzapur, and regarding the spread of mosquito-borne
past 6 years, we extended our initiative Sonbhadra in Uttar Pradesh; and Bastar and diseases and educating them regarding
to Uttar Pradesh and Chhattisgarh. We Kondagaon in Chhattisgarh. We received how to keep their families and communities
collaborated with the state governments formal acknowledgement from the state safe. The project currently runs in Bhopal,
of Madhya Pradesh, Uttar Pradesh, and governments of Madhya Pradesh and Uttar Gwalior, Indore, and Jabalpur in Madhya
Chhattisgarh and our NGO partner to run Pradesh in recognition of our efforts to help Pradesh; Lucknow, Kanpur, Agra, and
intensive behaviour change programmes in Madhya Pradesh move from a Category 3 Meerut in Uttar Pradesh; and Raipur in
regions with a high annual parasite index, to a Category 1 state in malaria elimination. Chhattisgarh. It aims to reduce dengue and
where the case burden is the highest. Similarly, we supported Uttar Pradesh to chikungunya cases and associated mortality.
move from Category 2 to Category 1.

162
The interventions under this project Our third project under EMBED focuses A third-party impact assessment of the
cover the following: on providing technical support to the rural malaria intervention was conducted
Government of India and Government in the fiscal year 2021-22. The survey ran
• Home visits to provide education
of Uttar Pradesh to help develop an across 4 districts of Madhya Pradesh,
and awareness on the diseases and
integrated vector management protocol namely Shivpuri, Sheopur, Alirajpur, and
prevention
and support its roll out in endemic states. Jhabua—1.5 years after the completion
• Community campaigns for mass
of the project and exit from December
awareness
This project aims to: 2021 to February 2022. The study revealed
• Digital outreach with SMS, WhatsApp,
that community awareness about malaria
interactive voice response, and • Develop integrated vector
symptoms remains high at 98% and that for
community radio management (IVM) protocols for short-
malaria testing when people have fever is
• Mobilisation and training of community term and long-term interventions
at 70% among the respondents. This has
volunteers who act as health • Provide information, education, and
led to frequent testing, timely treatment,
champions in intervention communities communicate behaviour change
and faster recovery. Of the households that
• Training public healthcare providers activities for at-risk communities by
participated in the study, 92% are actively
on neglected tropical diseases such as using an IVM approach for vector-
taking measures to keep their home and
dengue and chikungunya borne disease control
surroundings clean to ensure no mosquito-
• Engagement with private healthcare • Strengthen existing health systems and
breeding spaces exist in the community.
practitioners providers through capacity building
The SROI value for the overall programme
• Engagement with local public health on case identification, treatment,
is ₹12.57, that is, for every Rupee invested,
authorities, schools and colleges, and referral and providing technical
resident welfare associations, and the programme provides a value of ₹12.57.
support
professional associations • Foster sustainable partnerships across
multisectoral stakeholders to employ a
collaborative approach
• Build the capacity of the state and
district for outbreak investigation and
management

Protecting communities
and spreading
awareness around
vector-borne diseases
through Project EMBED

163
 Outreach Impact

• In the fiscal year 2022-23, our rural malaria • In our rural malaria project, we have met the
programmes reached out to 194,918 households target of zero malaria cases in 4 out of 9 districts
in 1,129 villages in 9 districts across Madhya (Mirzapur and Sonbhadra in Uttar Pradesh and
Pradesh, Uttar Pradesh, and Chhattisgarh. Sheopur and Shivpuri in Madhya Pradesh).
Further, we have seen a 44% reduction in SPR,
and the treatment completion rate is up by 18%.

• Our urban dengue programme reached out

to 280,500 households in over 2,000 urban
• Fever testing has increased by 332%, and a 36%
settlements in 9 cities in Uttar Pradesh,
reduction in dengue cases has been reported in
Madhya Pradesh, and Chhattisgarh.
geographies where we carried out the intervention.
This has, to a large extent, been due to our
successful integration with communities and cross
linkages between different municipal departments.
• Via our technical support to GoI and GoUP on
Finally, we partnered with the NCVBDC to organise
the integrated vector management project,
a ‘Technical Symposium on Dengue’ in New Delhi
approximately 20 million people were covered.
on 22 and 23 March 2023 under the Chairmanship
of Union Secretary, Ministry of Health and Family
• In total, 3,452 ASHA workers were trained Welfare. The main objective of this symposium was
in the prevention and control methods for to develop a strategic plan and roadmap for dengue
vector-borne diseases control in India along with inputs from endemic
states. A draft plan has been created and will be
• In total, 372 participants attended training finalised and implemented by August 2023. This
on entomological surveillance, clinical framework will become the foundation for GoI and
management of malaria, and outbreak all endemic states to manage and control dengue,
investigation. chikungunya, and Zika type diseases.

• A total of 20 outbreak surveillance visits • Through the successful implementation of all three
were carried out with NCVBDC and GoUP projects, we have reached out to over 28.2 million
to manage dengue and Zika outbreaks. people at the end of the fiscal year 2022-23, and by
the fiscal year 2025-26, we aim to protect 30 million
people against vector-borne diseases.

164
Transforming solid waste and
plastic management

As a global FMCG player and responsible Since the fiscal year 2020-21, we have In September 2022, we initiated an
corporate citizen, GCPL is committed partnered with the Puducherry Municipal end-to-end waste management project
to reducing waste across all its plants, Corporation to implement a community in the newly formed Malanpur Nagar
processes, products, and supply chain. waste management project, thus reaching Parishad, where one of GCPL's oldest
To this end, we have been sending zero out to over 200,000 people. We are digitally and biggest factories is based. The 3-year
waste to landfills from our manufacturing tracking the waste management process project will operate in all 15 wards of the
units for the last 4 financial years. and creating awareness on door-to-door Nagar Parishad, with the aim of sending
Beyond addressing the waste from our collection and source segregation. We have zero waste to landfill and breaking even
manufacturing processes, GCPL recognises diverted over 541 MT of waste from landfills on the operational cost of solid waste
its responsibility to work with communities through clean-up drives and established a management by the third year. In the fiscal
to manage waste. We do this not just by sanitation park that now processes 4TPD of year 2022-23, the project has diverted 383
collecting back 100% of the plastic waste waste. MT of waste from landfills.
generated by us every year as per Indian
EPR laws; we go beyond and work with civic We have provided access to medical GCPL has initiated an integrated
agencies, social enterprises, and citizens’ camps to 385 waste workers. Further, decentralised solid waste management
groups to ensure that we work as partners the implementation team has proposed a system in Palashbari Municipal Board
to increase the reuse of material and recycle detailed project plan to the Government in Kamrup district of Assam in October
as much as possible. of Puducherry. It also includes the action 2022. The Kamrup district currently houses
plan for sustainable waste management several GCPL manufacturing units. To reach
To this end, we have invested in helping solutions for the state. This DPR has optimal capacity and break even from an
communities around our offices and plant become the basis for the new tenders being operational cost perspective, the project
locations to identify and mitigate their released by the government. will cover all 10 municipality wards as well
waste-related issues through various as the surrounding commercial zones that
interventions by using circular economy are open to partnering. In the fiscal year
principles. 2022-23, the project has diverted 125 MT of
waste from landfills.

165
 Baddi in Solan district of Himachal Pradesh The state of Goa is one of the largest
houses two GCPL factories. Kasauli is one tourist hubs in the country and therefore
of the well-known tourist destinations needs to continually focus on waste
in Solan district. A municipal waste management to ensure no negative
management project was initiated to impact on its natural beauty. In the fiscal
tackle the growing garbage issue in the year 2022-23, GCPL in partnership
region that mars the natural beauty of the with the Goa State Pollution Control
geography. In the fiscal year 2022-23, we Board and Goa Waste Management
undertook a detailed baseline assessment Corporation initiated a 3-year waste
in the Kasauli cantonment area and five management project with Bicholim and
surrounding Panchayats (local population Sattari Municipal Councils. The project
from the 2011 census is approximately is being implemented by the Mineral
8,000 + 35,000 tourists annually). In Foundation of Goa in partnership with
addition to the baseline, we conducted Sampurna Earth. This project will cater
several cleaning drives around garbage to approximately 2.9 lakh people in the
blackspots, established waste-themed art region. In the fiscal year 2022-23, the
installations to create interest in citizens project has diverted 678 MT of waste
and tourists, and worked with school from landfill.
children to build awareness about the issue.
Through various cleaning drives in this Through the successful implementation,
project, we have diverted 325 kg of waste. we intend to transform waste
The full-scale implementation will begin in management systems of 7 municipalities
the fiscal year 2023-24. and divert over 5,000 MT of waste from
landfills by 2025-26.
We are actively working in our communities to
manage solid waste and recycle as much as possible

166
Integrated watershed
management

Our integrated watershed development Output

project is helping restore the ecological
We have completed the treatment of By the fiscal year 2023-24, we aim to treat
balance in the drought-prone district
1,778 hectares of land, covering 66% of 3,234 hectares of land, conserve 3.5 million
of Siddipet in Telangana. Currently,
the total area under the project. To date, kL of water per year, sink 30,000 tCO2 per
groundwater levels are lower than 400 ft
we have provided over 8.5 lakh saplings annum, as well as build the capacity of the
in many areas. Consequently, farmers are
for direct and seed dibbling. The project whole community on water management
under acute pressure. We are partnering
has developed 39 pandals and installed 25 and sustainable agriculture.
with NABARD and a local NGO to
drip irrigation systems at farmer lands, with
rejuvenate the land, recharge groundwater
a 30% contribution from the beneficiary
levels, facilitate necessary irrigation,
farmer. We have trained over 100 farmers
increase cropping cycles, improve the
on alternate agricultural practices, and
quality and quantity of produce, enhance
the income impact of this training will be
livelihoods, and ensure sustainable
reported in the fiscal year 2023-24.
agriculture practices.

Investing in watershed management

to help restore ecological balance

167
Statutory
Reports
Board’s Report 170

Report on Corporate Governance 209

 Board’s
Report
Dear Members, 1. Results of Our subsidiaries in various
geographies is given separately
Operations
Your Directors, with great pleasure, in the Board’s Report.
present the Annual and Integrated
The financial performance of
Report for the year ended March 31, The shareholders may also
your company for the fiscal
2023. refer to the Management
year under review is given
Discussion and Analysis
below.
section, which gives more
details on the functioning of
An overview of the
the company.
performance of the company’s

` (Crore)
Consolidated Standalone
Financials: Abridged Profit and Loss Statement
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Total revenue from operations 13,315.97 12,276.50 7667.17 6,951.56
Other income 168.41 89.71 139.48 69.18
Total income 13,484.38 12,366.21 7806.65 7,020.74
Total expenses, including depreciation and finance costs 11,297.54 10,201.48 5909.46 5,316.50

Profit/loss before exceptional items, share of profit of

2,186.84 2,164.73 1897.19 1,704.24
equity accounted investees, and tax

Exceptional items (54.11) (9.75) (27.59) 58.21

Share of profit of equity accounted investees (net of
- 0.28 - -
income tax)

Profit/loss before tax 2,132.73 2,155.26 1869.60 1,762.45

Tax expense 430.27 371.87 355.90 283.30
Profit/loss after tax 1,702.86 1,783.39 1513.70 1,479.15
Other comprehensive income 553.05 376.56 1.03 0.82
Total comprehensive income attributable to owners of 2,255.51 2,159.95 1514.73 1,479.97
the company

170
2. Dividend The Board at its meeting held approval of the shareholders
on May 19, 2022, approved at the ensuring annual general
the re-appointment of Ms. meeting. The profile of Ms.
A. Dividend Declared
Nisaba Godrej as Whole- Shalini Puchalapalli is annexed
Time Director designated as in the notice of the annual
The board did not declare any
“Executive Chairperson” for general meeting forming part
Interim Dividends during the
the period from October 1, of this report.
fiscal year 2022-23 and also
2022 to September 30, 2027.
has not recommended any final
The same was approved by the C. Audit Committee of the
dividend for the fiscal year.
shareholders at the AGM held Board of Directors
on August 3, 2022.
B. Dividend Distribution Policy
Your company has an Audit
The term of office of Ms. Committee in compliance with
The Board of Directors adopted Ndidi Nwuneli and Ms. Pippa Section 177 of the Companies
the Dividend Distribution Policy Armerding ended on March Act, 2013 and Regulation 18
pursuant to the Securities and 31, 2022 and January 30,
of Listing Regulations. The
Exchange Board of India (Listing 2023 respectively. On the
committee consists of the
Obligations and Disclosure basis of recommendation of
following Directors, viz., Mr.
Requirements) Regulations, Nomination and Remuneration
Sumeet Narang, Chairman
2015 (Listing Regulations), Committee, the Board had
of the Committee, and, Mr.
which requires the top 1,000 considered and approved their
Narendra Ambwani, Dr. Omkar
listed companies (by market respective reappointments
Goswami, Ms. Ireena Vittal,
capitalisation) to formulate the for a second term of five year,
Ms. Ndidi Nwuneli, Ms. Pippa
same. The company’s Dividend subject to approval of the
Armerding, and Mr. Pirojsha
Distribution Policy may also be shareholders. The approval of
the shareholders was received Godrej, all being members of
accessed through the following
by means of postal ballot. the committee.
link[1].

D. Declaration from Independent

3. Board of Directors In the forthcoming AGM, Mr.
Directors
Pirojsha Godrej and Mr. Nadir
Godrej will retire by rotation,
A. Number of Meetings
and being eligible, they will be All the Independent Directors
considered for reappointment. have given their declaration
Four board meetings were
confirming that they meet
held during the year. The
After the close of the fiscal the criteria of independence
details of the meetings and
year, the Board at its meeting as prescribed under the
the attendance record of the
held on June 5, 2023, approved provisions of the Companies
directors are given in the
the appointment of Ms. Shalini Act, 2013 and the Listing
Corporate Governance section Puchalapalli as an Independent Regulations, and the same has
of the Annual Report. Director with effect from been noted by the Board of
Nov 14, 2023, in place of Mr. Directors. The Independent
B. Changes in the Board of Narendra Ambwani who will Directors also confirmed the
Directors retire from that date after compliance with the code
completing his second term.
of conduct for directors and
During the fiscal year, there The appointment of Ms. Shalini
senior management.
was no change in the Board Puchalapalli is subject to the
composition.

[1]
https://godrejcp.com/sustainability/codes-and-policies

171
 E. Enrolment of Directors in of Directors are as per read with Rule 5(1) of the
Independent Directors Data the Board Diversity Policy, Companies (Appointment and
Bank Listing Regulations, and the Remuneration of Managerial
Companies Act, 2013. Personnel) Rules, 2014, is given

As per the notification of the under Annexure ‘C’. With
The Board Independence
Ministry of Corporate Affairs respect to the information
Statement is available on the
dated October 22, 2019, all under Rule 5(2) and Rule 5(3) of
company website and can be
the Independent Directors of the Companies (Appointment
accessed through the following
your company have registered and Remuneration of
link[3].
their names for inclusion in the Managerial Personnel) Rules,
‘Independent Director’s Data 2014, members may request
H. Remuneration Policy
Bank’ maintained by IICA. the same by sending an email
The company’s Remuneration to the company at investor.
F. Familiarisation Programmes Policy for Directors, Key [email protected] from
Managerial Personnel (KMP), their registered email address,
During the year, the and other employees is quoting their name and folio
Independent Directors attached as Annexure ‘B’. number.
were familiarised with the The company’s total rewards
J. Performance Evaluation of
Annual Operating Plan, framework aims at holistically
the Board of Directors, its
Global Categories Structures using elements such as fixed
Individual Members, and its
& Initiatives, Cluster wise and variable compensation,
Committees
performance for the fiscal long-term incentives, benefits
year 2022-23. Additionally, and perquisites, and non- We conducted a formal Board
at all the Board meetings, compensation elements effectiveness review, as part
detailed presentations (career development, work–life of our efforts to evaluate the
covering business performance balance, and recognition). performance of our Board
and financial updates were and identify areas that need
The Non-executive Directors
made. The programmes were improvement to enhance the
receive sitting fees and
conducted by the members effectiveness of the Board, its
commission in accordance
of the company management. Committees, and Individual
with the provisions of the
The details of the same are Directors. This is in line with
Companies Act, 2013.
available on the website of the the requirements of the
company and can be accessed Companies Act, 2013 and the
I. Remuneration to Directors
through the following link . [2] Listing Regulations.
The remuneration of
The Corporate Human
G. Board Diversity Policy & Directors is in accordance
Resources team of Godrej
Independence Statement with the Remuneration Policy
Industries Limited and
formulated in accordance with
The company has in place a Associate Companies worked
various rules and regulations
Board Diversity Policy which directly with the Chairperson
for the time being in force.
is attached as Annexure ‘A’. and the Nomination and
The disclosure on the details
The criteria for determining Remuneration Committee
of remuneration to Directors
qualification, positive of the Board to design and
and other employees
attributes, and independence execute this process. It was
pursuant to Section 197
later adopted by the Board.

[2]
https://godrejcp.com/public/uploads/compliance_other_updates/FamiliarisationProgrammeforIDs2022-23.pdf
[3]
https://godrejcp.com/public/pdfs/codes_policies/people/Board_Independence_Statement_May2023.pdf

172
 Each board member on their fulfilment of the followed and no material
completed a confidential independence criteria and departures have been
online questionnaire, sharing their independence from the made from the same.
vital feedback on how the management.
b) They have selected such
Board currently operates and
accounting policies and
how its effectiveness could The following reports were
applied them consistently
be improved. This survey created as part of the
and made judgements
included four sections on the evaluation:
and estimates that are
basis of which feedback and
• Board Feedback Report reasonable and prudent
suggestions were compiled:
to give a true and fair
• Individual Board Member view of the state of affairs
• Board Processes
Feedback Report of the company at the
end of the fiscal year
• Individual Committees
• Chairperson’s Feedback and of the profit of the
Report company for that period.
• Individual Board
Members
The overall Board feedback c) They have taken proper
was facilitated by Ms. Ireena and sufficient care for
• Chairperson
Vittal with the Independent the maintenance of
Directors. The Directors put adequate accounting
The criteria for Board
forth their views regarding records in accordance
processes included Board
the Board functioning with the provisions of the
structure, strategic orientation
effectively and identified Companies Act, 2013,
as well as Board functioning,
areas that showed scope for safeguarding the
and team dynamics.
for improvement. Feedback assets of the company
Evaluation of each of the
from the Committees and and for preventing and
Board Committees covered
Individual Board Members was detecting fraud and other
whether they have well-defined irregularities.
shared with the Chairperson.
objectives and the correct
Following her evaluation, a
composition and whether d) They have prepared the
Chairperson’s Feedback Report
they achieved their objectives. annual accounts on a
was compiled.
The criteria for Individual going concern basis.
Board Members included K. Directors’ Responsibility e) They have laid down
skills, experience, level of Statement internal financial controls
preparedness, attendance,
to be followed by the
extent of contribution to Board Pursuant to the provisions
company, and such
debates and discussions, and contained in Section 134 (5)
internal financial controls
how each Director leveraged of the Companies Act, 2013,
are adequate and
your Directors, based on the
their expertise and networks operating effectively.
representation received from
to meaningfully contribute to
the operating management f) They have devised
the company. The criteria for
and after due inquiry, confirm a proper system to
the Chairperson’s evaluation
the following points: ensure compliance with
included leadership style and
conduct of Board meetings. the provisions of all
a) In the preparation of
The performance evaluation applicable laws, and this
annual accounts, the
criteria for Independent system is adequate and
applicable accounting
Directors included a check operating effectively.
standards have been

173
 4. Transfer to Investor the company as on March 31, Transactions require disclosure
2022, on the company website, in the Board’s Report for
Education and
which can be accessed through complying with Section 134(3)
Protection Fund
the following link[5]. The details (h) of the Companies Act, 2013.
of unpaid and unclaimed Therefore, the disclosure of
In accordance with the
amounts lying with the Related Party Transactions as
applicable provisions of the
company as on March 31, 2023, required under Section 134(3)
Companies Act, 2013 read
will be available on the same (h) of the Companies Act,
with Investor Education and
link within 60 days of the AGM. 2013 in Form AOC-2 is not
Protection Fund (Accounting,
applicable.
Audit, Transfer, and Refund)
5. Finance
Rules, 2016 (IEPF Rules), 6. Acquisition
all unclaimed dividends are A. Loans, Guarantees, and
required to be transferred Investments After the end of the fiscal year
by the company to the IEPF 2022-23, the Company entered
after completion of 7 years. The details of loans, into an agreement on April
Further, according to IEPF guarantees, and investments as 27, 2023 for the acquisition
Rules, the shares on which required by the provisions of of the business of Raymonds
dividend has not been claimed Section 186 of the Companies Consumer Care Limited (RCCL)
by the shareholders for 7 Act, 2013 and the rules made through slump sale basis at a
consecutive years or more shall thereunder are set out in consideration of ` 2825 crore.
be transferred to the demat the Notes to the Standalone RCCL is an Indian FMCG
account of the IEPF authority. Financial Statements of the player operating primarily in
Accordingly, ` 1,30,79,598 company. deodorants and sexual wellness
unpaid/unclaimed dividends categories with two key brands
were transferred during the B. Related Party Transactions - Park Avenue and Kamasutra.
fiscal year 2022-23 to IEPF. No This acquisition allows the
shares were transferred during In compliance with the Listing Company to complement its
the current year. Regulations, the company has business portfolio and growth
a Policy for Transactions with strategy with under-penetrated
The company has appointed Related Parties (RPT Policy). categories that offer a long
a Nodal Officer and a Deputy The RPT Policy is available runway of growth. The said
Nodal Officer under the on the company website and acquisition was completed on
provisions of IEPF Regulations, can be accessed through the May 08, 2023.
the details of which are following link[6].
available on the company 7. Subsidiaries,
website and can be accessed Apart from the Related Party Associates, and Joint
through the following link[4]. Transactions in the ordinary
Venture
course of business and on
arm’s length basis, the details During the year, DGH Uganda
The company has uploaded
of which are given in the ceased to be the subsidiary of
the details of unpaid and
Notes to Financial Statements, your company with effect from
unclaimed amounts lying with
no other Related Party November 20, 2022.

[4]
https://godrejcp.com/investors/details-of-shares-to-iepf#Details-of-Nodal-Officer
[5]
https://godrejcp.com/investors/unclaimed-dividend
[6]
https://godrejcp.com/sustainability/codes-and-policies

174
 The dissolution of Indovest strengthen profitability. We our portfolio, investing in the
Capital initiated in the will continue to focus sharply consumer, and accelerating Wet
previous fiscal year is under on category development Hair/FMCG growth. We will
process. with breakthrough innovation, maintain laser-sharp focus on
strong brand building, and strong governance controls and
A. Report on the Performance of maintain an unrelenting focus
GTM strengthening.
Subsidiaries and Associates on employee/consumer safety.
Africa, the Middle East, and
The details of the cluster-wise Latin America
the USA
performance are given below:
The fiscal year 2022-23 Our Latin America cluster
Indonesia witnessed continued strong closed a middling year in a
growth for our Africa, Middle challenging environment.
The fiscal year 2022-23 started
East, and US business clusters. Net sales (in `) declined by
showing strong signs of
The overall business top line 3%, while EBITDA declined
recovery in the second half by 57%, in comparison with
grew by 12% with the South
of the year. The large Saniter the past year’s sales and
cluster growing strongly at
base waned due to reduced EBITDA, respectively. This
11% and US market delivered
demand as COVID-19 impact was driven by a sharp contrast
7% growth in ` terms despite
receded across the world. in performance between
various macro challenges.
The overall business top line We faced significant cost Argentina and Chile.
declined by 3%, but ex- Saniter headwinds across markets—
Argentina business closed
the business grew at 7% in input cost increases, adverse
another year of profitable
terms of `. We continued to forex movement, and the
growth. The team delivered a
strengthen the fundamentals continued tendency of
top-line growth of 90% in local
for the future, by doubling consumers to shift away from
currency (10% in `), driven by
down on strong distribution value-added products resulting
go-to-market improvements,
expansion in our General in an adverse portfolio mix.
COMEX expansion, and
Trade business. HIT had However, our robust cost-
innovation. EBITDA grew by
muted growth as the category optimisation programmes
16% in local currency, achieving
slowdown continued, however, and timely price increases
an EBITDA margin of 9% in
promising growth in Electrics helped minimise the impact
local currency.
segment as we continue to on margins,. Overall, despite a
upgrade consumers from coil challenging year, we focused on Our Chile saw a significant
to electrics. Air fresheners had strengthening the fundamentals decline led by consumers
a strong growth driven by our for the future. We witnessed moving back to salon habit of
continued momentum on braid hair colours. Net sales declined
strong media investments.
premiumisation in South Africa. by 23% in local currency (28%
We delivered strong growth
We also significantly accelerated in `). EBITDA declined by 96%
in Baby Wipes segment and
our GTM efforts in Nigeria, in local currency, driven by
have clawed back share. We
particularly last-mile distribution higher fixed costs and loss of
continued to strengthen our
through the van model. Going scale benefits.
in-store execution in modern
forward, our focus would
trade leveraging our strengths Looking ahead, we aim to bring
be to strengthen last-mile
in data and analytics. Chile back to growth levels
distribution across markets
(including the salon channel) by focussing on profitable
We also continued focusing
and continue improving growth and working capital
on cost savings to fuel our
margins by driving operational management.
growth investments, field
excellence, strengthening
macro environment, and

175
 B. Policy on Material the constitution of the Internal
10. Annual Return
Subsidiaries Committee in compliance
with the Sexual Harassment In compliance with the
In compliance with the provisions Section 134(3)(a)
of Women at Workplace
Listing Regulations, the of the Companies Act, 2013,
(Prevention, Prohibition,
Board has adopted a policy the Annual Return as per
and Redressal) Act, 2013,
for determining material Section 93(3) of the Companies
to consider and resolve all
subsidiaries. This policy is Act, 2013, is available on
sexual harassment complaints
available on the company the company website, which
reported by women. During
website and can be accessed can be accessed through the
the year, awareness regarding
through the following link[7]. following link[8].
sexual harassment among
employees was created
C. Financial Performance
through emails to employees.
11. Risk Management
A statement containing the There were 5 complaints The company has a well-defined
salient features of the financial reported during the calendar process in place to ensure
statements of subsidiary/joint year 2022, and accordingly, appropriate identification
venture/associate companies, the committee has filed the and mitigation of risks. The
of the company in the complaint report with the Risk Management Committee
prescribed Form AOC-1, concerned authorities in of the company has been
a part of consolidated accordance with Section 22 of entrusted by the Board with the
financial statements (CFSs) the aforementioned Act. responsibility of identification
in compliance with Section and mitigation plans for the
129(3) and other applicable 9. Talent Management
‘Risks that Matter’.
provisions, if any, of the and Succession
Act read with Rule 5 of the Planning Elements of risks to the
Companies (Accounts) Rules, company are listed in the
Your company has the talent
2014. Management Discussion and
management process in
Analysis section of the Annual
The said form also highlights place with the objective of
and Integrated Report.
the financial performance developing a robust talent
of each of the subsidiaries pipeline for the organisation, 12. Vigil Mechanism
and joint venture companies which includes the senior
leadership team. As part of Your company has adopted a
included in the consolidated
the talent process, we identify Whistle Blower Policy as a part
financial statement of the
critical positions and assess of its vigil mechanism.
company pursuant to Rule 8(1)
of the Companies (Accounts) the succession coverage for
The purpose of the policy is to
Rules, 2014. them annually. During this
enable any person (employees,
process, we also review the
customers, or vendors) to
8. The Sexual supply of talent, identify high-
raise concerns regarding
Harassment of potential employees, and plan
unacceptable improper
Women at Workplace talent actions to meet the
practices and/or any unethical
(Prevention, organisation’s talent objectives.
practices in the organisation
Prohibition, and We continue to deploy
without the knowledge of the
Redressal) Act, 2013 leadership development
management. All employees
initiatives to build succession
Your company has complied shall be protected from any
for key roles.
with the provisions relating to adverse action for reporting

[7]
https://godrejcp.com/sustainability/codes-and-policies
[8]
https://www.godrejcp.com/investors/annual-reports

176
 any unacceptable or improper B. Corporate Social Grant Scheme, 2011 and the
practice and/or any unethical Responsibility disclosures in compliance with
practice, fraud, or violation of Share Based Employee Benefits
The corporate social
any law, rule, or regulation. (SEBI) Regulations, 2014 and
responsibility (CSR) Policy
This policy is also applicable to Section 62 (1) (b) read with Rule
is available on the company
the directors of the company. 12 (9) of the Companies (Share
website under the following
Capital and Debentures) Rules,
Mr. V Swaminathan, Head link[10]. The CSR Report, along
2014 are set out in Annexure
Corporate Audit and with details of CSR projects,
‘F’.
Assurance, has been appointed are provided in Annexure ‘E’
as the Whistle Blowing Officer, of this report. Your company has not given a
and his contact details have loan to any person under any
C. Employee Stock Option
been mentioned in the policy. scheme for or in connection
Scheme
Furthermore, employees are with the subscription or
free to communicate their The company has a stock purchase of shares in the
complaints directly to the option scheme named as company or the holding
Chairman/Member of the Audit ‘Employee Stock Grant company. Hence, there are no
Committee, as stated in the Scheme, 2011’. The number disclosures on voting rights
policy. The policy is available and the resulting value of stock not directly exercised by the
on the internal employee grants to be given to eligible employees.
portal, and the company
website and can be accessed
employees are decided by the
14. Listing
Nomination and Remuneration
through the following link . [9]
Committee, which are based The shares of your company are
The Audit Committee reviews on the closing market price on listed on the BSE Limited and
reports made under this policy the date of the grants. National Stock Exchange of India
and implements corrective Limited. The applicable annual
actions, wherever necessary. The vesting period, exercise
listing fees have been paid to
period and the other terms
13. Annexures of vesting, if any, are also
the stock exchanges before the
due dates. Your company is also
decided by the Nomination
A. Disclosure on Conservation listed on the Futures and Options
and Remuneration Committee.
of Energy, Technology Segment of the National Stock
Upon vesting, the eligible
Absorption, Foreign Exchange Exchange of India.
employee can exercise the
Earnings, and Outgo
grants and acquire equivalent 15. Business
Annexure ‘D’ of this report shares of the face value of ` 1 Responsibility &
provides information on per share. Sustainability Report
the conservation of energy,
The difference between the Pursuant to Regulation 34
technology absorption, foreign
market price at the time of of the Listing Regulations,
exchange earnings, and outgo
grants and that on the date of the Business Responsibility
required under Section 134(3)
exercise is the gross gain/loss and Sustainability Report
(m) of the Companies Act,
to the employee. The details highlighting the initiatives
2013 read with the Companies
of the grants allotted under taken by the company in the
(Accounts) Rules, 2014, which
the Godrej Consumer Products areas of environment, social,
forms a part of the Board’s
Limited Employee Stock economics, and governance is
Report.

[9]
https://godrejcp.com/sustainability/codes-and-policies
[10]
https://godrejcp.com/sustainability/codes-and-policies

177
 available on the website of the the fiscal year that ended on The details pertaining to the
company and can be accessed March 31, 2023, is attached internal financial control and its
through the following link[11]. herewith as Annexure ‘G’. The adequacy are also a part of the
Secretarial Audit Report does Annual and Integrated Report.
16. Auditors and not contain any qualification,
Auditors’ Report reservation, or adverse remark. 19. Confirmations
A. Statutory Auditors a. Your company is in
The Company has also
compliance with the
During the year, M/s. B S R undertaken an audit for the
applicable Secretarial
and Co., LLP, Chartered fiscal Year 2022-23 for all
Standards issued by the
Accountants (Firm Regn. No. the applicable compliances
Institute of Company
101248W/W-100022) have been as per SEBI Regulations and
Secretaries of India.
re-appointed as the statutory Circulars/Guidelines issued
auditor for a second term of thereunder. The Annual b. Other than the acquisition
five years to hold the office Secretarial Compliance Report of business of Raymond
from the conclusion of the for fiscal year 2022-23 has Consumer Care Ltd,
22nd AGM held on August 03, been submitted to the Stock which is mentioned
2022, until the conclusion of Exchanges and is available on in Note 59 of the
the 27th AGM in the year 2027 the website of the Company in standalone financial
at a remuneration as may be the following link [12]. statements, there have
approved by the Board. been no material changes
17. Corporate and commitments
B. Cost Auditors Governance affecting the financial
position of the company
The company is maintaining Pursuant to the Listing
that have occurred
requisite cost records for Regulations, the Report
between March 31, 2023,
its applicable products. on Corporate Governance
and the date of this
Pursuant to directions from is included in the Annual
Board’s Report.
the Department of Company and Integrated Report. The
Affairs, M/s. P. M. Nanabhoy c. There have been no
Practising Company Secretary’s
and Co., Cost Accountants, instances of fraud
Certificate certifying the
were appointed as cost auditors reported by the auditors
company’s compliance with
for the applicable products of under Section 143 (12) of
the requirements of corporate
the company for the fiscal year the Companies Act, 2013,
governance, in terms of the
2022-23. They are required to and the rules framed
Listing Regulations, is attached
submit the report to the Central thereunder, either to
as Annexure ‘H’.
Government within 180 days of the company or to the
the end of the accounting year. 18. Management Central Government.
Discussion and
C. Secretarial Auditors d. The company has not
Analysis
accepted any deposits
The Board had appointed from the public, and
Management Discussion
M/s. A. N. Ramani and Co., as such, no amount on
and Analysis as stipulated
Company Secretaries, to the account of principal
under the Listing Regulations
conduct a secretarial audit for or interest on deposits
is presented in a separate
the fiscal year 2022-23. The from the public was
section forming a part of this
Secretarial Audit Report for outstanding as on the
Annual and Integrated Report.
date of the balance sheet.
[11]
https://www.godrejcp.com/investors/annual-reports
[12]
https://godrejcp.com/public/uploads/compliance_other_updates/AnnualSecComplianceReport2023.pdf

178
 e. During the fiscal year to encompass better financial experience & expertise,
2022-23, there were no performance, decision-making, gender, tenure, nationality,
significant and material innovation, and adaptability to ethnicity, race, and diversity of
orders passed by the changing market conditions. thought.
regulators or courts
or tribunals that can Objective • Board will include and make
adversely impact the good use of the differences
The Board Diversity policy aims to in the competency of skills,
going concern status
create an environment that values capabilities, knowledge,
of the company and its
and fosters inclusiveness, embraces industry experience,
operations in the future.
a broad spectrum of talent, and background, race, gender,
20. Appreciation champions a culture of meritocracy. nationality and other qualities
The policy strives to ensure that of the individual members as a
Your Directors wish to extend its Board reflects diversity in its whole.
their sincere thanks to the broadest sense including but not
employees of the company, limited to, business experience, • Board will have diversity in
central and state governments, geography, age, gender, nationality, thought and nationality to
as well as government ethnicity, and race. By doing so, we best represent the consumers
agencies, banks, customers, aim to contribute to the company’s served in emerging markets
shareholders, vendors, and competitive advantage, stakeholder globally.
other related organisations that engagement, and overall business
have helped in your company’s performance. • Board will have a range of
progress, as partners, through views, thoughts, insights,
their continued support and Scope and Applicability perspectives, and opinions to
co-operation. improve its decision-making
This policy only applies to the Board
and benefit the company’s
For and on behalf of the of Directors of Godrej Consumer
stakeholders.
Board of Directors Products. It is crafted in line with
Godrej Consumer Products’ Code Diversity Objectives
Nisaba Godrej
of Conduct and GCPL Human
Executive Chairperson
Right policy, which is committed to Our commitment and target is to
inclusion and diversity. have at least one woman director
on the Board as per the SEBI
Mumbai, June 5, 2023 Policy Statement (Listing Obligations and Disclosure
Requirements) Regulations 2015.
ANNEXURE ‘A’ We recognise and embrace the
However, our aspiration is to ensure
benefits of having a diverse Board
BOARD DIVERSITY POLICY that no more than 50% of any
and see increasing diversity at
one gender is represented on the
Board level as an essential element
The case for boardroom diversity Board. We recognise that Board
in maintaining a competitive
has never been stronger. In composition may result in temporary
advantage. Being a global company,
today’s rapidly evolving business periods when we are not able to
we acknowledge to have diversity of
environment, we recognise the achieve this balance.
thought and nationality to be able to
power of leveraging diverse
best serve the consumers in regions Monitoring & Reporting
perspectives, skills, and experiences
where we operate. We aspire to
to stay competitive. At Godrej
maintain a balance with reference to: The Nomination and Renumeration
Consumer Products, we seek board
Committee is responsible for
members with diverse backgrounds
• Membership of the Board ensuring that the Board has the right
and viewpoints, who can provide
includes a diverse mixture of balance of skills, experience, and
a wide array of insights and ideas.
skills, professional & industry knowledge and, in accordance with
The advantages of a diverse board
backgrounds, geographical its terms of reference, shall:
extend beyond a social factor

179
 • Periodically review Board long-term commitment. In addition Total Cash Compensation
composition, succession to monetary rewards, benefits
planning, talent development and perquisites are provided to The total cash compensation
and the broader aspects of enhance employee satisfaction includes all forms of direct monetary
diversity. and well-being. Furthermore, the compensation that an employee
framework also emphasizes non- receives, such as base salary,
• Identify/evaluate candidates compensation elements such as bonuses, incentives, and allowances,
for appointment to the Board career development opportunities, excluding non-cash benefits
on merit against the Board work-life balance initiatives, and or perks. It has following two
Diversity policy objective and recognition programs, ensuring a components:
have diverse skills, experience, well-rounded approach to employee
background, and expertise of rewards. By adopting this Total (a) Fixed Compensation:
current members of the Board. Rewards Framework, GCPL aims to comprising both “Fixed
provide a comprehensive package Compensation” and “Flexible
• Report in the Corporate Compensation.” The Fixed
that supports employee growth,
Governance section of Compensation encompasses
motivation, and overall satisfaction.
the Annual Report on the basic salary, House Rent
implementation of the Board Highlights Allowance (HRA), and
Diversity Policy and other retirement benefits, including
regulatory and statutory The rewards framework the provident fund and
requirements. implemented at GCPL provides gratuity. On the other hand,
employees with the flexibility the Flexible Compensation is
Review to personalize various elements a predetermined portion of
based on their specific needs. This the overall compensation that
The Nomination and Renumeration framework is seamlessly integrated employees can allocate to
Committee will review the policy with GCPL’s performance and talent different components based
periodically keeping in view the management processes, ensuring on their grade eligibility. At
statutory requirement and need of that rewards are closely aligned the beginning of each fiscal
the organisation and recommend the with individual performance and year, employees have the
same to the Board for their approval. contributions. A key focus of the flexibility to distribute this
framework is to deliver sharply amount among various options
ANNEXURE ‘B’ differentiated rewards for our according to their individual
high-performing talent, recognizing needs and preferences.
GCPL TOTAL REWARDS POLICY
their exceptional achievements
and potential. Additionally, when (b) Variable Compensation
At GCPL (Godrej Consumer (Performance-Linked
determining total compensation,
Products Limited), the Total Variable Remuneration):
GCPL considers three significant
Rewards Framework is designed
factors: Position, Performance, and comprising employee rewards
to encompass a comprehensive
Potential. Specifically, for employees for delivering superior
approach to employee
with high potential, GCPL aims to business results and individual
compensation and well-being. It
provide total compensation that performance. It is designed
incorporates various elements to
exceeds the 75th percentile of the to provide a significant
create a comprehensive rewards
market, reflecting our commitment upside earning potential for
package that considers both
to attract and retain top talent. overachieving business results.
financial and non-financial aspects.
Through this approach, GCPL aims It has a ‘Collective’ component,
The framework encompasses
to create a culture of excellence linked to the achievement
fixed and variable compensation, of specified business results,
and ensure that our employees are
including salary and incentives, relative to the target set
rewarded appropriately for their
as well as long-term incentives to for a given fiscal year, and
contributions and growth.
promote employee engagement and

180
 an ‘Individual’ component, CEO Compensation metrics – Underlying Volume
based on an employee’s Growth, Reduction in Inventory
performance, as measured by Our compensation philosophy & Account Receivables, and
the performance management is strategically designed to EBITDA & Working Media
process. align a sizeable portion of our Growth. These financial and
CEO’s compensation with the Operating metrics are set
It also includes Employee
attainment of business performance internally by the Management
Stock Grant Scheme. This
objectives and the best interests Committee and the Board of
scheme is applicable to GLF
of our shareholders. This approach Directors.
(Godrej Leadership Forum)
members, under this scheme cultivates a culture of responsibility This includes Stock Option
stock options are granted and fosters long-term value Grants to incorporate external
annually at face value to vest creation for all stakeholders. market performance measures,
over multi-years. The value of Our compensation philosophy we grant our CEO stock
the stock grant is proposed seeks to achieve a harmonious options at face value. These
by the management and equilibrium by rewarding the CEO options vest equally over a
approved by the Nomination for their exceptional leadership three-year period aligning the
and Remuneration Committee. and accomplishments while also CEO’s interests with the long-
This component comprises of ensuring that their interests are term success of the company.
15 to 20% of the CTC of our closely aligned with our enduring The stock options represent
leadership team. approximately 50% of their
business goals. It has following three
total compensation which
Long-Term Incentive plans (2022): components:
demonstrates a substantial
(a) Fixed Compensation: Fixed commitment to the company’s
LTI (Long Term Incentives) at Godrej
compensation encompasses success and strengthens the
strive to drive a culture of ownership
base pay, allowances, perks, alignment between the CEO’s
and focus on long term result, it also
and benefits. It includes a fixed performance and shareholder
has element of retention.
salary, guaranteed payouts, value.
and annual increments linked
This plan is applicable to the top (c) Long Term Incentives (2021):
to the business performance.
leadership of GCPL. In 2022, we
This component ensures A significant portion of the
introduced a long-term incentive
that our CEO receives a CEO compensation is tied
plan that is linked to sustained
competitive and stable to a long-term outlook and
business success over a four-year
remuneration package that performance of the business
plan period based on metrics of reflects their skills, experience, which entails performance
market capitalisation and profit after and performance. linked stock grant vesting and
taxes. The payout under this plan
a component of cash payout on
is calculated at the end of the four- (b) Variable Compensation:
the achievement of a CAGR on
year period based on the business Variable pay is directly tied to a
market capitalization over a six-
combination of the company’s
performance achieved during that year timeframe. The threshold
overall business performance
time. To ensure the continuity of for the plan is an achievement
and the CEO’s individual
business success, half of the payout of target revenue CAGR
performance. The performance
is deferred and paid out in the fifth growth, PAT CAGR growth and
measures are calculated
year. This approach incentivises the relative performance to BSE
based on three predefined
top leadership to focus on the long- FMCG index.
financial and relative financial
term growth and profitability of the
company, driving sustainable value
for all our stakeholders.

181
 ANNEXURE ‘C’

INFORMATION PURSUANT TO SECTION 197 (12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5 (1) OF THE
COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

The ratio of the remuneration 2022-23; the percentage increase/ the fiscal year 2022-23; and the
of each Director to the median decrease in the remuneration of comparison of remuneration of each
remuneration of the employees each Director, Chief Financial Officer, KMP against the performance of the
of the company for the fiscal year and Company Secretary during company are as follows:

Whole-Time Directors, Chief Financial Officer, and Company Secretary

Sr. Name of the KMP Designation Percent Increase/ Ratio of Median Remuneration
No. (Decrease) In of Each Director to the Median
Remuneration in the Remuneration Paid/Payable
Fiscal Year 2022-23 to all Employees for the Fiscal
Year 2022-23
1 Nisaba Godrej Executive Chairperson 38.84 146.26
2 Sudhir Sitapati Managing Director & CEO Please see note below 311.63
3 Sameer Shah Chief Financial Officer Please see note below Not Applicable
4 Rahul Botadara Company Secretary & Compliance Officer Please see note below Not Applicable

Note: Mr. Sudhir Sitapati has been Botadara has been appointed as fiscal year 2021-22, the remuneration
appointed as the Managing Director Company Secretary & Compliance is not comparable and hence
& CEO w.e.f. October 18, 2021, Mr. Officer w.e.f. September 1, 2021. percentage change in remuneration
Sameer Shah has been appointed as Since they have been appointed is not provided in the table.
Chief Financial Officer and Mr. Rahul to their new roles in the mid of the

Sr. Name of Director Percent Increase/(Decrease) in Ratio of Remuneration of Each Director to

No. Remuneration in the Fiscal Year 2022-23 the Median Remuneration Paid/Payable to all
Employees for the Fiscal Year 2022-23
1 Jamshyd Godrej (4.35) 4.75
2 Nadir Godrej - 5.40
3 Tanya Dubash 8.70 5.40
4 Pirojsha Godrej - 5.40
5 Narendra Ambwani - 8.86
6 Pippa Armerding 2.50 8.64
7 Omkar Goswami - 8.64
8 Ndidi Nwuneli - 8.64
9 Ireena Vittal - 8.64
10 Sumeet Narang* - -

*Mr. Sumeet Narang has voluntarily waived the remuneration receivable from the company.

182
Note: held on July 30, 2018, has to previous year. In case of
authorised the payment of salaries of Key Managerial
(i) The median remuneration of all commissions on profits to the persons, the figures are not
the employees of the company Non-Executive Directors at strictly comparable as there
for the fiscal year 2022-23: the rate not exceeding 1% of were changes in KMP in the
` 4.63 lakhs net profits of the company mid of FY 2021-22 and the
with authority to the Board remuneration reflected for FY
(ii) The percentage decrease in to determine the manner 2022-23 is for the full year.
the median remuneration of and proportion in which the
employees in the fiscal year amount be distributed among (v) The remuneration is as per the
2022-23: 12.31% the Non-Executive Directors. Remuneration Policy of the
The Board has authorised company.
(iii) The number of permanent
a base commission of ` 20
employees on the payrolls of ANNEXURE ‘D’
lakhs per annum to each
the company as on March 31,
Non-Executive Director. All INFORMATION PURSUANT
2023: 2510
the Independent Directors are TO SECTION 134 (3) (M) OF
paid an additional commission THE COMPANIES ACT, 2013
(iv) The average percentile
linked to their attendance at READ WITH THE COMPANIES
increases already made in the
various committee meetings (ACCOUNTS) RULES, 2014, WITH
salaries of the employees,
and Independent Directors’ RESPECT TO CONSERVATION
other than the Managerial
meetings. There is no change OF ENERGY, TECHNOLOGY
Personnel, in the last fiscal
in the base amount of the ABSORPTION, FOREIGN
year and its comparison with
commission on profits or EXCHANGE EARNINGS, AND
the percentile increase in the
sitting fees payable to OUTGO
managerial remuneration and
Non-Executive Directors for
justification thereof:
attending meetings of the A. Conservation of Energy
Board/Committee thereof.
Total managerial remuneration Steps taken or impact of
The percent change in
comprises the remuneration initiatives for conservation of
remuneration represents a
of the Whole-Time Directors energy, and steps taken by
change in the pay-out based on
and commission paid to the company to use alternate
actual attendance at meetings
Non-Executive Directors. sources of energy.
of the Board or Committee
The Whole-Time Directors’
thereof for each of the Non- I. North East Cluster
remuneration is as per the
Executive Directors, compared
resolution approved by the
with that in the previous year. The total expense on energy
shareholders and will not
savings initiatives is ` 83 lacs.
exceed 10% of the company’s
The average change in the A few major energy/water
net profits as permitted by
salary of employees other than conservation initiatives are as
the Companies Act, 2013. The
the Managerial Personnel is a follows:
Non-Executive Directors are
decrease of 14%. This is largely
also eligible for a sitting fee • Use of DM water in place
due to lesser performance
of 1 lakh per Board meeting of Distilled water for
linked variable remuneration
attended and 20,000 per Developer batch making
payout to all employees in
committee meeting attended. in crème manufacturing
FY 2022-23 as compared
The shareholders at the AGM at New Guwahati, New

183
 Conso and Lokhra II • Outfeed conveyor of received by our 7 teams
units. Annual Energy Flow wrap & Pakona including 2 par excellence
Saving 11765 kwh interlock with Machine award in Lean QC and 5
Annual HSD saving – 96 in AER Pocket at Sikkim. par excellence award in
KL Annual Energy Savings – QCC.
5670 KWH
• Replacing Pakona with II. North Cluster
Ezee 40 gm multitrack Awards
Energy Conservation
machine at Lokhra II,
• GCPL India Meghalaya
Annual Energy Saving The total capital investment
Coil unit selected
145981 kwh on energy savings initiatives
as winner for the
is `132.76 lakh, and savings in
• RC-1 , RC-2 and RC-3 prestigious ‘The
energy consumption is 12.08
motor capacity reduced Machinist Super Shop
lakh KWH per annum, which
from 3HP to 1.5 HP at floor Awards 2022” in
is equivalent to ` 72 lakh
Meghalaya Coil. the category “Excellence
per annum. Some of energy
Annual Energy Savings – in Environment, Health
conservation initiatives are as
70054 KWH and Safety -SME”.
follows:
The Machinist Super
• Replacement of Pulver Shop floor Awards are • Power saving due to
25 hp motor with 15 hp organized by Worldwide elimination of 4 banding
motor at Kalapahar Coil. Media (WWM), a fully machine by merging
Annual Energy Savings – owned subsidiary of The output of 2 wrapping
13356 KWH Times of India Group machine.
(BCCL).
• Power saving by
• Slider for material
• Our GCPL Factories interlocking of roller
transfer from 1 floor to
st

have bagged Gold for conveyors and metal

ground Floor at New
New Conso, and Silver detectors.
Conso. Annual Energy
for Meghalaya Coil,
Savings – 33600 KWH • Energy saving by
New Guwahati, AER and
replacing UB cutter
• Crème Colorant process Sikkim in 4th ICC National
pneumatic cylinder with
optimization at New Occupational Health
servo motor.
Conso. Annual Energy & Safety Award 2022
Savings – 11321 KWH by Indian Chamber of • Modification done
Annual Water Savings – Commerce in wrapping heater
225 KL assembly.
• Meghalaya Coil has

• One rod heater(3.0KW) received 4th Level • Power saving due to FG

Award: PRASHANSA & mezzanine floor no. of
reduced in twist filling
PATRA and AER unit has light reduction.
hopper at Kalapahar AER.
received “Certificate of
Annual Energy Savings –
Appreciation” in NSCI • Power saving through
7488 KWH speed synchronization
Safety Award 2022 at
Panjim, Goa. by interlocking of MPC &
• Upgraded Latest version
eliminate idle running of
of economizer installation
• In 36th National TRM.
in boiler to reduce diesel
Convention on Quality
consumption at Lokhra Ii. • Cooling tower motor
Concepts (NCQC-2022),
Annual Energy Savings – rating reduction by
15 awards have been
23063 KWH replacement of fan.

184
 • VFD installed in hot well • Motion sensor-based annum. The water conservation
motor pump. lighting to on/-(lights- initiatives are as follows:
45watt, light qty-50) 20%
• Replaced normal vacuum • RO waste water start
lighting electricity to be
pump with VSD vacuum to use for gardening
saved.
pump. purpose.
• Electricity saving with the
• Installation of VFD on • Reuse of RO rejected
help of FBD system in Liu
chiller. water.
of tray dryer.
• Streetlights replaced with • Replacement of wate
• Solar light tubes.
solar lights. cooled air compressor
• Maintain the unit PF in with VSD air cooled
• Motion control sensor
electricity bill. compressor in Katha &
to be fixed in the office
Kathua.
cabins. • CD reduction 50KVA.
Awards Won
• Replaced the old servo • Energy saving by remove
3HP motor with 1HP the idle run of flow wrap • Platinum & Super Star
servo motor of wrapping conveyor. Award in CII National
machine. Technology Competition
• Replacement of air-cooled under Manufacturing
• Replacement of all old brine chiller for individual Category.
motor with energy line 2 & 3.
efficient motors. • 4 Gold Awards in CII
• Replacement of ordinary Poka-yoke National
• 625KVA DG replaced vacuum pump with VSD Kaizen Competition.
with 325KVA DG set. vacuum pump.
Interchange with another • 5 Sliver Award Winner
• Replacement of ordinary in Poka-yoke &
unit.
motor with energy Renovation Category at
• Admin office CFL lights efficient motor. 41st CII National Kaizen
convert to LED. Competition.
• Installation of solar
• Intermediate conveyor tube lights to eliminate • 02 Star Challenger Award
replaced with SS stand; electrical light. Winner in Restorative
base of stand made by Kaizen at CII Challengers
• Energy saving on
acrylic sheet & installed trophy 2022-23
BDH blower by timer
LED light for monitoring
implementation. • 2 Par Excellence,
quality defects. Per day
9 Excellence & 2
12.1 KWH & annual 363 • Energy saving by fixing
Distinguish awards in
KWH. timer for hot water pump.
NCQC.
• Utilization of solar power • Energy saving by
III. South Cluster
system-65-70% to be load removing 2 RC fans at
in solar system. wet stage each drier. Energy Conservation

• Electricity power to be Water Conservation The total CAPEX utilized for

saved through utilization energy conservation measures
of 1500 KG bulk Mfg The total capital investment on
in fiscal year was `144 lakhs
facilities in Liu 850KG for water conservation initiatives is
and the Energy conservation
lime variant. ` 8.2 lakh, and savings in water
initiatives are as follows:
consumption is 750 KL per

185
 • Reduction in energy • Installation of sensor- completed QCFI-JUSE
consumption by the based water taps in 5S Re-Certification audit
installation of energy all the washrooms and and obtain the certificate
efficiency motors, VFDs, Canteen areas. at National Convention at
BLDC fans, Electric Aurangabad.
Screwdriver, Roof top Awards
Solar panels have all Events
• CII-EHS: MMN unit has
resulted in Discom Power
got the Silver award and • Safety theme based
savings of 2,71,240 Kwh/
CONSO unit has got the monthly celebrations
year covering all units.
Bronze Award in CII EHS organized in all units for
• To reduce Carbon Excellence Award 2022. the past 8 years.
Footprint, use of Bio
• National Safety • Safety infrastructures
waste fuels, instead of
Councils Safety Awards: provided in the units are
Furnace oil, in our Hot
CONSO unit has got Fire detection system,
air generators in our
the “Certificate of Fire Hydrant Ring main
Pondicherry Coil Factory,
Appreciation” towards line, Fire snipper system,
to the extent of 3,835 MT.
NSCI Safety Award 2022. Machine Guarding, Visitor
• New Roof top Solar safety animated Video,
• CII – Best practices of
panel is installed in Coil Roof lifeline, Skylight
Work at Height Award
9 and Coil 6 unit with sheet mesh protection
has got by Coil 6 unit.
the capacity of 115 and and Electrical safety etc.
315 kWp. Roof top Solar • QCFI – EHS: MMN unit
panel installed in CONSO has got the Gold Award. • “World Environment Day”
unit of capacity 99.6kWp was celebrated based
has Generated the power • CONSO and MMN Unit on the theme “Living
of 1.31 lakhs of units has won Excellence award sustainably in Harmony
which has saved 138 trees and Par Excellence with nature”, and tree
and carbon reduction by award respectively in 8th saplings were planted in
105 MT. National 5S Conclave at all units.
Goa.
Water conservation: • The 34th National Road
• MMN Unit won Platinum Safety was celebrated
The total CAPEX utilized for award in QCFI Chennai across the South Cluster
Water conservation in fiscal Chapter 5S Competition. based on the theme of
year is `20 lakhs and the water
“Sadak Suraksha – Jeevan
conservation initiatives are as Audits
Raksha”.
follows:
• Integrated Management
• The 52nd National Safety
• Use of STP treated water Systems (IMS): South
Week was celebrated
for toilet flushing and Units have successfully
across the South Cluster
gardening purposes. completed 3rd IMS
based on the theme of
surveillance audits
• Water management using “Our Aim Zero Harm”.
without any NCs
level sensors in water (ISO 9001:2015, ISO • 21 Mock Drills are
storage tanks. 14001:2015 and ISO conducted across the
45001:2018). South Cluster units to
• Rainwater harvesting
system of 1lakh liter validate Emergency
• Marai Malai Nagar (MMN)
capacity in CONSO unit. preparedness.
Unit has successfully

186
 • Women’s Day across • 75th Independence day • Christmas day celebration
the South Cluster where celebration done in a done for the first time
various competitions grand manner across in all the units of south
were conducted for all the units. Various cluster and CONSO unit
contract workers and competitions conducted selected as the runner up
prizes were distributed to to all category of across all GCPL Units.
the Winners. employees and prizes
distributed to the • As a part of GGVW,
• We donated 15 Nos ECG winners. we organized Make
Machines to government Science fun event in the
hospitals which posed • As a part of health nearby schools wherein
a challenge in treating awareness creation, we 395 school students
cardiac ailments as conducted Eye screening benefited.
request from Health program in Conso unit,
secretary of Puducherry wherein 127 employees • Dengue awareness

on 25 November 2022.
th
participated and session given in Govt

benefited in the camp. School.

• We donated a 60KVA
DG Set to Madagadipet • For COVID-19 Control, • As a part of building

Commune Panchayat on we organized Covid safe work environment,

23 September 2022 for

rd
Booster Camp across all we conducted POSH

the uninterrupted Power the units. awareness session in all

supply for the Drinking the units of South Cluster.

water pumps which cater • We donated 2 computers 80 officers, 92 Blue collar

to 28 nos Overhead and 1 printer to Govt and 1050 Contract Labors

Drinking water Tanks in primary school-Nallur as covered in this program.

Madagadipet Village. a part of CSR initiatives

in developing Children’s • We renovated 5

• On account of “WORLD education. Panchayats Public Toilet

HEALTH DAY”, we to improve the sanitation

organized exercise event • As a part of sustaining and Hygiene, lead to 500

across all the south employee’s health, Villagers benefit.

cluster units, wherein BC We organized cardio

exercise across all the • We donated Science Life
and WC employees were
south cluster units during Labs to 30 Government
participated and did the
“WORLD HEART DAY” Schools in Karaikkal and
exercise.
event. Pondicherry to enhance

• In order to create the the Students Knowledge.

awareness on health • Prepared Common Health

awareness calendar IV. Central West Cluster
diet, we organized
“EAT NATURALLY across all the units and
The total capex utilized
EVENT” across all the awareness program given
for energy conservation/
units. Contract workers as per the calendar.
Renewable energy measures
displayed the various is ` 1140 lac. The energy
• Children’s day celebration
healthy natural diet. conservation measures
done in all the units at
nearby Schools. undertaken are as follows:
• International yoga day
was organized in all Under the Renewable & GHG
• As a part of 5s, we did
the units to impart the head, following initiatives were
community cleaning at
goodness of yoga and implemented:
nearby villages.
maintain good health.

187
 • Installed 1700 Kwp • Energy Saving in FADP • Increase in noodle output
shed solar panels 2 by improvement from 456 MT/day to 565
which reduced load on in Heat Balance by MT/day (including new
electricity board and design change – 2.5% CSP) resulting into energy
reduced GHG emissions reduction in specific Fuel efficient plant operations.
which has resulted in Consumption.
• Increase in FADP feed
saving of 25 lac unit per
• Feed and energy rates from 482 to 496
annum.
improvement in MVC MT/day.
• Maximized usage of resulted in saving of ` 20
• Increase in FSP feed rates
Briquette by 4% with lac/annum.
from 492 to 502 MT/day.
respect to fiscal year to
reduce gas consumption • Reduction in steam & Under IOT/Industry 4.0
and fossil fuel usage. power consumption in following projects were
new CSP plant resulted completed:
Under Specific Energy in saving of ` 138 lacs /
Consumption head, the annum. • Installed 128 numbers of
following initiatives were AI based CCTV camera’s
implemented: • Installed energy efficient in boundary of factory to
LED lights in offices in monitor activity which can
• Commissioned energy place of CFL resulted detect human trespassing
efficient vacuum pump in in reduction of power and send alerts.
place of water ring pump consumption by 6000
which resulted in saving units /annum. • Installed an integrated
of power consumption by high speed soap line
2 lac units / annum. • Installed High flow rate 5 & CSP plant which
impeller with Motor in has SCADA system for
• Evaporative type process pumps resulted monitoring of various
condenser installation in reduction of power process parameters which
in water chilling unit consumption by 1 lac helps in taking timely
resulted in saving of 1.2 unit/annum. decision to improve the
lac units per annum. productivity & reduce
Under specific Water
down time of plant.
• Installed higher surface Consumption Reduction head:
area heat exchanger following initiatives were taken • Installed Radar based
in FADP 3 resulting in Level transmitter
improved productivity • Installed rain water
along with SCADA for
and 3% reduction in harvesting in new soap
prevention of overflow of
steam consumption plant which has resulted
oil in storage tanks.
(Saving of ` 25 LPA ). in harvesting of approx.
15 lac litres of water / • Online monitoring of
• Energy Saving in FSP annum. soap noodle bag counting
2 by improvement in in SM2 SCADA for all 3
Heat Balance by Heat In addition, Malanpur Bag filling system.
Exchanger design team improved

change resulting in 4% productivity of soap • Installed online OPE

reduction in specific fuel noodle & feed rates of measurement in line 2
consumption (Saving of ` chemical plants which helped in taking timely
12 LPA). contributed in reduction decisions to improve
of specific energy efficiency and reduce
consumption. downtime.

188
 Awards won by the Malanpur B. Technology Absorption 2. Personal Care, which
unit includes soaps & toiletries
The Research and and hygiene range etc.
• GCPL Malanpur received Development function of your
10 Par Excellence awards, organisation played a key 3. Hair care and hair colours
1 Excellence award and role in ensuring the successful
4 Quiz Awards in the 36th launches of the following 4. Wet hair and dry hair.

National Convention on products during the fiscal year

II. Benefits Derived as a Result
Quality Concepts 2022, 2022-23:
of the Above R&D Efforts
held at Aurangabad,
Maharashtra from 27th to 1. Jumbo Fast Card
R&D has played pivotal role in
30th December 2022. developing new technologies
2. HIT one push aerosol in
Indonesia in AER, Hair Colours, Personal
• GCPL Malanpur bagged
Wash and HI areas. Strong R&D
a total of 17 awards in
3. Roll on led initiatives with innovative
case study presentation
projects have led to successful
on various topics in 4. AER Power Pocket Range launches of several new
the Indian National
products in the marketplace
Suggestions Schemes’ 5. Godrej Professional new
in the current fiscal year. The
Association (INSAAN) shades
company has launched range
held at New Delhi in
6. MG Hair styling Gel of health & hygiene products
various categories like
under different brands and
Poem/Poster/Slogan 7. Godrej Professional has shown strong agility in
Competition. Keracare development & technology

• GCPL Malanpur received commercialisation. R&D is

8. Stella Mist Diffuser
1 Quality Circle award, continuously protecting its

10 LQC awards and 2 5S 9. HIT Goodknight LV Innovations through Design

awards in the Gwalior and Product patents. The

Chapter of Quality Circle 10. NYU Crème variants company has filed several

(GCCQC) 2022 held at patents both in India and

The current year, like previous abroad. R&D has played a
Gwalior on 3 September
rd
years, also saw a sharp focus pivotal role in improving cost
2022.
on consumer-centric and optimization across product
• GCPL Malanpur received relevant design led innovation. categories by contributing
6 par excellence awards The company put lot of through both product and
in the 8th National focus on Innovation in new process related innovations
conclave on 5S held technologies, which gives value and improvements.
at Agnel Institute of for money to the consumer.

Technology & Design, We believe that the three key

I. R&D Product Categories pillars of consumer centricity,
Goa held on 25 June
th
Initiated by the company new product Innovation &
2022.
Development and training-led
1. Home Care, which
• GCPL Malanpur received skill up-gradation will continue
includes household
certificate of appreciation to propel your Company ahead
insecticides, air
from NSCI (National of competition in its strategy of
fresheners, and fabric
Safety Council of India). innovation led value creation.
care etc.

189
 Future Plan of Action: Hair Care, Household within all categories such as
Insecticides, Room Freshner Household Insecticides, Hair
R&D shall continue to play a and personal care categories Care, AER, Fabric Care and
key role in the advancement for the coming year. Health & Hygiene.
and successful execution
of newer innovations in the 2. Engaging in providing support 4. Maintaining a strong focus on
marketplace, for both domestic on global innovation strategies R&D training needs and people
and international business. for various product categories development.
Our R&D team shall constantly within our international
endeavor to deliver superior businesses and extending 5. Partnering collaborations with

innovative products thereby support on relevant product external stake holders and

delighting, both domestic and development for international leading Institutions.

international customers by: markets. 


6. Sustainability in the core of

1. Ensuring successful 3. Focusing on newer consumer Packaging and product.

commercial launches within relevant product experiences

C. Expenditure on R&D

` Crore
Fiscal Year Fiscal Year
2022-23 2021-22
Capital 0.97 0.08
Recurring 21.20 20.57
Total 22.17 20.66
Total R&D expenditure as a percentage of total sales turnover 0.29% 0.30%

D. Foreign Exchange Earnings and Outgo

` Crore
Fiscal Year Fiscal Year
2022-23 2021-22
I. Foreign exchange used 618.92 737.10
II. Foreign exchange earned 292.18 264.49

ANNEXURE ‘E’ greener world. The GCPL CSR policy 2013. The policy as well as projects
focuses on addressing the critical and programmes under the CSR
CSR REPORT
social, environmental, and economic Policy are available on the Company

A brief outline of the Company’s needs of the marginalised and less website and can be accessed
CSR Policy, including an overview privileged sections of society. We through the following link[13].

of projects or programmes adopt an approach that integrates

An overview of the projects or
proposed to be undertaken, the solutions to these problems
programmes undertaken during the
with a URL to the CSR Policy and into the strategy of the Company
fiscal year 2022-23 is given below.
initiatives to benefit communities at large and
We have aligned our programmes to
deliver social and environmental
GCPL is committed to the Godrej national priorities and missions, and
impact. The Company has framed
Group’s ‘Good & Green’ vision they are categorised as follows.
a CSR Policy in compliance with the
of creating a more inclusive and provisions of the Companies Act,

[13]
https://godrejcp.com/sustainability/codes-and-policies

190
A. Community Development water facility in Meghalaya, Access to entitlements
provided a gen-set and trolly
Godrej believes in people, National and state government
to draw ground water in
planet, profit – meaning have introduced various
Karaikal which will provide
our focus is to improve welfare schemes to support the
water to 6,000 people. Further,
and support people and most vulnerable population and
in Malanpur we installed Roof
communities, work towards often, the target beneficiaries
Rainwater Harvesting Systems
sustainable environment and are unaware of the schemes
in all community buildings in 4
be a responsible company. As or the process to access it. We
villages, aiming at saving 1,565
a part of our people focus, at GCPL are working with our
KL of water per year going
we work very closely with non-profit partners to provide
forward.
the communities around our awareness about and access to
operations. We understand Enabling quality education these schemes to communities
that the need of every around our factories. In
Promoting STEM education,
community may be different Jammu, Baddi, and Malanpur,
STEM labs were set up in 30
based on a lot of factors; the we helped unlock over INR 1
schools across Pondicherry
focus is to drive interventions cr of direct cash benefit and
and Karaikal, catering to
that are need based and INR 50+ cr worth of insurance
over 3,800 students from
through the participation coverage by unlocking govt.
low-income backgrounds. A
of the people. Through our schemes and benefits (Jammu,
computer lab and a classroom
various community projects Baddi, Malanpur) for close to
were set up in Kathua while
focused on access to WASH, 8,000 people and their families.
classrooms were renovated in a
education, health, justice and
primary school in Bari Brahma. Access to justice for women
entitlements, we have been
In addition, 150 destitute
able to unlock INR 1 cr of While we have a robust justice
children were supported in
direct cash benefit and INR system in India; however,
Mumbai by supporting their
50+ cr worth of insurance accessing those especially
access to a safe and enabling
coverage by unlocking govt. by the most vulnerable and
living environment and quality
schemes and benefits. illiterate population can be a
education.
strenuous task – which may
WASH
Access to better health lead to further trauma for
Responding to the situation of people already suffering from
We support health
depleting sanitation condition social challenges. To enable
infrastructure around our
in schools, we constructed 4 access to justice, a social
operations to ensure quality
toilets in a primary school in justice centre was set up in
and timely access to health
Meghalaya, and repaired one the District Court in Bhind,
services for the people. We
public toilet in Pondicherry, especially for women – which
donated 5 OT tables and 1
thus providing better and has resulted in 15% increase in
anaesthesia station in Guwahati
hygiene and sanitation to women accessing the same.
Medical College &Hospital.
250 students and over 1,000
The hospital caters to over 500 Disaster support
people respectively.
patients daily.
The flood situation in Assam
Access to water is a major
In Mumbai, we provide food in June – July 2022 was very
challenge in many locations.
kits to 200 TB patients and bad with over 55 lakh people
For communities to access
their families on a monthly across 32 out of 35 districts
drinking water – we
basis, in partnership with in the state affected. The
constructed a borewell in
Brihanmumbai Municipal worst affected districts were
Kathua, an under-ground
Corporation under the TB Mukt Barpeta, Cachar, Dima Hasao,
water tank in Bari Brahma,
Bharat Abhiyan. Kamrup, and Karimganj. The
renovated existing drinking

191
 death toll figures crossed 100 opted for self-employment was introduced to provide
people with extensive damage by setting up a small beauty women interested in skilling
to property, farm animals, parluor at home. The trainees and upskilling themselves on
and agricultural land. Though who are placed have received certain areas in beauty and
partnerships with the district an average starting salary of wellness – who may not be
administration of Kamrup, and INR 4,500 per month. 80% able to commit to a long-term
civil society implementation, of these trainees are first training programme. Through
we supported over 5,800 time job seekers and also these workshops, we reached
families affected by Assam first generation of females over 7,163 women plus
floods were supported through participating in workforce. alumnis.
flood relief food packets, In addition, we ran a pilot
C. Elimination of Vector-Borne
support to revive livelihoods in on providing conversational
Endemic Diseases
the form of seeds and animal English learning platform to
feed. 500 trainees. Over 40% of Project EMBED (Elimination
them have shown improvement of Vector-Borne Endemic
B. Employability and Livelihoods
in learning and basic English Diseases) started in 2015 in
At Godrej, we collaborate with conversational levels. This Madhya Pradesh in partnership
non-profit organisations and was introduced to boost their with the Ministry of Health
social enterprises to design and confidence in interacting with & Family Welfare’s National
run several skilling programmes clients and improving their Centre for Vector Borne
for youth from low-income scope of placement at high end Diseases Control (erstwhile
sections of society. We aim to beauty-parlours. NVBDCP) focusing on malaria
improve the earning potential elimination in line with the
As an extension of Salon-i, Government of India’s mission.
of our trainees by building
we support women micro Over the past 8 years, we
their skills and by empowering
entrepreneurs in the beauty extended our initiative to
them. Apart from core domain
and wellness sector in various Madhya Pradesh, Uttar Pradesh
skills, our programmes also
parts of the country to and Chhattisgarh, and in FY
focus on life skills training,
grow their businesses. The 21, we extended our focus
entrepreneurship development,
Beautypreneur project aims to on dengue and chikungunya
and postplacement support.
handhold nano entrepreneurs prevention in urban areas.
As of March 2023, we to help them stabilise and We collaborate with NGOs
have trained over 4,47,000 expand their enterprises. Since and state governments to run
young people in skills that the fiscal year 2016-17, we intensive behaviour change
will enhance their earning have supported over 8,660 programmes in regions with
potential. Our projects are: women entrepreneurs and in a high annual parasite index,
FY23 we welcomed 3,369 new where the case burden is the
• Salon-i—our beauty and
entrepreneurs to the cohort. highest. We work in each
hair care training
In addition, we have expanded location for 3 years, spreading
• Beauty-preneur (BP), our work with barbers and awareness among households
Home-preneur (HP) and have trained and supported and people at the bottom of
Barber-preneur platform over 240 young men to on the pyramid and vulnerable
for nano and micro advanced hair styling skills and and marginalised groups.
entrepreneurs in beauty enterprise development.
Our urban dengue and
industry chikungunya project in five
In FY23, we also introduced
short workshops wherein cities focuses on increasing
In Salon-I, we trained 2,900
our trainers would teach the awareness of urban poor
young girls this year. Of this
specific topics and services communities regarding the
over 60% of the trainees
to the participants. This spread of mosquito-borne
were either placed in jobs or

192
 diseases and educating them treatment completion rate D. Waste Management
regarding how to keep their is up by 18%.
families and communities safe. As a global FMCG player
- Increase in fever testing and responsible corporate
The project runs in Bhopal and
up by 332% and there citizen, GCPL is committed to
Gwalior in Madhya Pradesh and
has been 36% reduction reducing waste across all its
Lucknow and Kanpur in Uttar
in Dengue cases in plants, processes, products,
Pradesh. It aims to reduce
intervention geographies. and supply chain. To this
dengue and chikungunya cases
This has to a large end we have been sending
and associated mortality. Our
part been due to our zero waste to landfills from
third project under EMBED
successful integration our manufacturing units
focused on providing technical
with communities and for the last 4 fiscal years.
support to the Government of
cross linkages between Beyond addressing the waste
India and Government of Uttar
different municipal from our manufacturing
Pradesh to help develop an
departments. processes, GCPL recognises
integrated vector management
protocol and support the roll - Finally, we partnered with its responsibility to work
out of the same in endemic the National Centre for with communities to manage
states. In FY23, we organised 1 Vector Borne Diseases waste. We do this not just by
national dengue conclave with Control (NCVBDC) to collecting back 100% of the
NVBDCP in Delhi and 1 state organise a ‘Technical plastic waste we generate
dengue conclave in Lucknow, Symposium on Dengue’ every year as per Indian EPR
Uttar Pradesh. in New Delhi on 22 & 23 laws, but we go beyond and
March 2023, under the work with civic agencies, social
In FY23, in addition to above
Chairmanship of Union enterprises, and citizens’
we piloted a Civic action
Secretary, Ministry of groups to ensure that we work
model of equipping community
Health & Family Welfare. in partnership to increase reuse
citizens – women and youth
The main objective of of material and recycle as much
to take leadership in their
this Symposium was as possible.
communities for prevention
to develop a strategic
of dengue. We ran awareness To this end we are invested in
plan and roadmap for
sessions for these select helping communities around
Dengue control in India
volunteers and equipped them our offices and plant locations
along with inputs from
with information on detection identify and mitigate their
endemic states. A draft
of larvae and working waste related issues through
plan has been created
collaboratively with municipal a variety of interventions
and will be finalised and
corporation for prevention by using circular economy
implemented by August
of dengue. We ran the pilot principles.
2023. This framework will
in Mumbai (Maharashtra),
become the foundation
Ahmedabad (Gujarat), Delhi, Since the fiscal year 2020-
for GoI and all endemic
Lucknow, and Kanpur (Uttar 21, we have partnered with
states to manage
Pradesh). the Puducherry Municipal
and control Dengue,
Corporation to implement a
- In our rural malaria Chikungunya and Zika
community waste management
project, we have met the type diseases.
project reaching out to
target of zero malaria
Through the successful over 200,000 people. We
cases in 4 out of 9 districts
implementation of all three are digitally tracking the
(Mirzapur & Sonbhadra
projects, by the fiscal year waste management process
in UP and Sheopur and
2025-26, we aim to protect 30 and raising awareness on
Shivpuri in MP). Further,
million people against vector- door-to-door collection and
we have seen a 44%
borne diseases. source segregation. We have
reduction in SPR and

193
 diverted over 541 MT of Palashbari Municipal Board in garbage blackspots, set up
waste from landfills through Kamrup district of Assam in waste themed art installations
clean-up drives and have set October 2022. Kamrup district to create interest in citizens
up a sanitation park which now currently houses several GCPL and tourists, and worked
processes 4TPD of waste. We manufacturing units. The with school children to build
provided 385 waste workers project will cover all 10 wards awareness about the issue.
access to medical camps. of the municipality as well as Through this project, we have
Further, the implementation surrounding commercial zones been able to divert 325 kg of
team has proposed a detailed that are open to partnering, in waste via cleaning drives. The
project plan to the Govt. of order to reach optimal capacity full scale implementation will
Puducherry with an action and break even from an begin in FY24.
plan for sustainable waste operational cost perspective. In
The state of Goa is one of
management solutions for the FY23, the project has diverted
the largest tourist hubs in the
state. This DPR has become the 125 MT of waste from landfills.
country and therefore needs
basis for the new tenders being
Baddi in Solan district of to continually focus on waste
released by the government.
Himachal Pradesh houses management to ensure its
In September 2022, we two GCPL factories. Kasauli is natural beauty does not get
initiated an end to end waste one of the well known tourist negatively impacted. In FY23,
management project in the destinations in Solan district GCPL in partnership with Goa
newly formed Malanpur Nagar and initiated a municipal State Pollution Control Board
Parishad, where one of GCPL’s waste management project to and Goa Waste Management
oldest and biggest factories is tackle the growing garbage Corporation, initiated a three
based. The 3 year project will issue in the region which year waste management
operate in all 15 wards of the mars the natural beauty of project with Bicholim and
Nagar Parishad with the aim of the geography. In FY23, Sattari Municipal Councils. The
sending zero waste to landfill we undertook a detailed project is being implemented
and breaking even on the baseline assessment in Kasauli by Mineral Foundation of Goa
operational cost of solid waste cantonment area and 5 (MFG) in partnership with
management by year 3. In surrounding Panchayats (local Sampurna Earth. This project
FY23, the project has diverted population from 2011 census will cater to ~2.9 lakh people in
383 MT of waste from landfills. is~8,000 + 35,000 tourists the region. In FY23, the project
annually). Apart from the has diverted 678 MT of waste
GCPL has initiated an
baseline, we also conducted from landfill.
integrated decentralised solid
several cleaning drives around
waste management system in

194
ANNEXURE -II FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE BOARD’S
REPORT FOR FINANCIAL YEAR COMMENCING ON OR AFTER 1ST DAY OF APRIL, 2020

1. Brief outline on CSR Policy of the Company.

GCPL is committed to the Godrej Group’s ‘Good & Green’ vision of creating a more inclusive and greener
India. The GCPL CSR policy focuses on addressing the critical social, environmental, and economic needs of the
marginalised and less privileged sections of society. We adopt an approach that integrates the solutions to these
problems into the strategy of the Company to benefit communities at large and deliver social and environmental
impacts. The Company has framed a CSR Policy in compliance with the provisions of the Companies Act, 2013.
The policy as well as projects and programmes under the CSR Policy are available on the Company website and
can be accessed through the following link[14].

2. Composition of CSR Committee:

Sr. DIN Name of Director Designation / Nature of Number of meetings of Number of meetings
No. Directorship CSR Committee held of CSR Committee
during the year attended during the
year
1 00591503 Nisaba Godrej Executive Chairperson 2 2
2 00066195 Nadir Godrej Non-Executive Director 2 2
3 00026028 Tanya Dubash Non-Executive Director 2 1
4 00236658 Narendra Ambwani Independent Director 2 2
5 09197063 Sudhir Sitapati Managing Director & CEO 2 2

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the company.
https://www.godrejcp.com/sustainability/codes-and-policies
https://www.godrejcp.com/sustainability

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of
the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).
No impact assessments were conducted as no projects qualified as per MCA guidelines.

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:

Over and above 2% mandatory spend for the FY, INR 2.45 Crore is spent in lieu of CSR spends of FY14-15. A
capital asset (briquette based boiler) was acquired by the company in FY 2014-15 wherein an investment of
`9.32 Crore was treated as CSR expense as per the then prevailing rules, it was informed that such part of that
asset cannot be alienated. The total spend that was required to be spent in FY15 was ` 12.41 Crore, however,
the Company actually spent ` 16.08 Crore, largely due to the excess amount spent towards the investment in
the Briquette boiler. The GCPL Board recommended that the asset would not be classified as CSR asset and the
perceived underspend of `5.81 Crore (excluding overheads) in FY 2014-15 would be spent in FY23 and FY24, in
addition to the statutory CSR obligation for the respective years.

[14]
https://www.godrejcp.com/sustainability/codes-and-policies

195
 Sr. Financial Year Amount available for set-off Amount required to be setoff
No. from preceding financial for the financial year, if any
years (in `) (in `)

1 FY2022-23 NIL -

6. Average net profit of the company as per section 135(5).

` 1599.70 Crore

7. (a) Two percent of average net profit of the company as per section 135(5)
` 31.99 Crore
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years
NA
(c) Amount required to be set off for the financial year, if any
NA
(d) Total CSR obligation for the financial year (7a+7b+7c).
` 31.99 Crore

8. (a) CSR amount spent or unspent for the financial year:

(` Crore)

Total Amount transferred to Amount transferred to any fund specified under

Total Amount Unspent CSR Account as per Schedule VII as per second proviso to section
Spent for section 135(6) 135(5)
the Financial
Year Amount Date of Name of the Amount Date of
transfer Fund transfer

31.69 0.30 21 April 2023 - - -

196
 (b) Details of CSR amount spent against ongoing projects for the financial year:
(` Crore)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from the list of Local Location Project Amount Amount Amount Mode of Mode of
No. Project activities in Schedule VII Area Of the project duration allocated spent in the transferred Implem Implementation
to the Act (Yes/ for the current FY to Unspent -entation - Through
No) project CSR Account (Direct) Implementing
for the (Yes/No) Agency
project as
per Section
State Districts Name CSR
135(6)
Registration
no
1 Salon-i Schedule VII No GJ, MH, RJ, Palanpur, 24 3.51 3.44 0.07 No Saath Charitable CSR00000021
(ii) livelihood UP Ahmedabad, Trust
enhancement projects Banaskantha,
Baroda, Verawal,
Surat
Jaipur, Ajmer,
Pushkar,
Jodhpur,
Udaipur, Kota,
Bikaner, Sikar
Agra, Banaras
2 Salon-i Schedule VII No UP, KA, TN Lucknow, 24 1.49 1.49 - No Vrutti CSR00000538
(ii) livelihood Barabanki,
enhancement projects Sitapur,
Raibereily
Mandya, Mysore,
Chamrajnagar,
Mangalore,
Uttarkanda,
Shimogga
Madurai, Selam,
Coimbatore,
Trichy
3 Salon-i Schedule VII Yes MH Mumbai, Pune, 24 1.37 1.37 - No Save the CSR00000158
(ii) livelihood Nagpur Children
enhancement projects India (Vipla
Foundation)
4 Salon-i Schedule VII Yes Delhi Delhi central 14 0.32 0.32 - No Dhriiti CSR00001800
(ii) livelihood
enhancement projects
5 Salon-i Schedule VII Yes GJ Dholka, 14 0.64 0.64 - No Friends of the CSR00000871
(ii) livelihood Mehsana, Kadi, Women World

197
enhancement projects Kalol Banking
198
(` Crore)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from the list of Local Location Project Amount Amount Amount Mode of Mode of
No. Project activities in Schedule VII Area Of the project duration allocated spent in the transferred Implem Implementation
to the Act (Yes/ for the current FY to Unspent -entation - Through
No) project CSR Account (Direct) Implementing
for the (Yes/No) Agency
project as
per Section
State Districts Name CSR
135(6)
Registration
no
6 Salon-i Schedule VII Yes Assam Guwahati 24 0.88 0.88 - No Access CSR00002703
(ii) livelihood Development
enhancement projects
7 Salon-i Schedule VII Yes MH Satara, Chiplun, 14 0.46 0.46 - No Manndeshi CSR0001923
(ii) livelihood Kamothe, Pune, Foundation
enhancement projects Kolhapur
8 Salon-i Schedule VII Yes Delhi Delhi central 14 0.13 0.13 - No Delhi Council for CSR00005527
(ii) livelihood Child Welfare
enhancement projects
9 Salon-i Schedule VII Yes CH, MP, UP, Bhatapura, 14 0.91 0.91 - No Ambuja Cement CSR00006913
(ii) livelihood WB, RJ, GJ, Chindwara, Foundation
enhancement projects HP Dadri, Mathura,
Sankraii, Jaitaran,
Nagaur, Chirawa,
Gandhinagar,
Nalaghar
10 Salon-i Schedule VII Yes UP Loni 14 0.18 0.18 - No Hope CSR00000472
(ii) livelihood Foundation
enhancement projects
11 Salon-i Schedule VII Yes MH Mumbai 14 0.24 0.24 - No Eklavya CSR00013122
(ii) livelihood Foundation
enhancement projects
12 Salon-i Schedule VII Yes MH Mumbai 14 0.24 0.24 - Yes NA NA
(ii) livelihood
enhancement projects
13 Salon-i Schedule VII No Maharashtra Mumbai 4 0.09 0.09 - Yes NA NA
(ii) livelihood
enhancement projects
 (` Crore)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from the list of Local Location Project Amount Amount Amount Mode of Mode of
No. Project activities in Schedule VII Area Of the project duration allocated spent in the transferred Implem Implementation
to the Act (Yes/ for the current FY to Unspent -entation - Through
No) project CSR Account (Direct) Implementing
for the (Yes/No) Agency
project as
per Section
State Districts Name CSR
135(6)
Registration
no
14 Salon-i Schedule VII No Maharashtra Mumbai 6 0.10 0.10 - Yes NA NA
(ii) livelihood
enhancement projects
15 Salon-i Schedule VII No Maharashtra Mumbai 12 0.59 0.59 - Yes NA NA
(ii) livelihood
enhancement projects
16 EMBED rural Schedule VII No UP, MP, CH Shivpuri, 14 5.07 5.07 - No Family Health CSR00001169
(i) promoting preventive Sheopur, India
healthcare Balaghat
Bareily, Badaun,
Mirzapur,
Sonbhadra
Bastar,
Kondagaon
17 EMBED urban Schedule VII No UP, MP, CH Shivpuri, 14 4.60 4.60 - No Family Health CSR00001169
(i) promoting preventive Sheopur, India
healthcare Balaghat
Bareily, Badaun,
Mirzapur,
Sonbhadra
Bastar,
Kondagaon
18 EMBED -IVM Schedule VII No Delhi, UP Delhi central, 14 2.72 2.51 0.21 No Centre for Health CSR00004757
(i) promoting preventive Lucknow Research &
healthcare Innovation
19 EMBED - Civic Schedule VII No MH Mumbai 14 0.34 0.34 - No Civis CSR00020458
action (i) promoting preventive
healthcare
20 EMBED - Civic Schedule VII No GJ, Delhi Ahmedabad, 14 0.21 0.21 - No Mahila Housing CSR00001364
action (i) promoting preventive Delhi Trust
healthcare

199
200
(` Crore)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from the list of Local Location Project Amount Amount Amount Mode of Mode of
No. Project activities in Schedule VII Area Of the project duration allocated spent in the transferred Implem Implementation
to the Act (Yes/ for the current FY to Unspent -entation - Through
No) project CSR Account (Direct) Implementing
for the (Yes/No) Agency
project as
per Section
State Districts Name CSR
135(6)
Registration
no
21 Waste Schedule VII (iv) Yes MP Bhind 36 0.54 0.54 - No Feedback CSR00004049
management environment sustainability Foundation
22 Waste Schedule VII (iv) Yes Assam Kamrup 36 0.50 0.50 - No Feedback CSR00004049
management environment sustainability Foundation
23 Waste Schedule VII (iv) Yes Goa North Goa 36 0.65 0.65 - No Mineral CSR00033496
management environment sustainability Foundation of
Goa
24 Waste Schedule VII (iv) Yes HP Solan 36 0.43 0.43 - No Waste Warriors CSR00002589
management environment sustainability Society
25 Waste Schedule VII (iv) Yes Pondi Pondi 14 0.14 0.14 - Yes Recity NA
management environment sustainability
26 Waste Schedule VII (iv) No MH Mumbai 14 0.23 0.23 - Yes Dasra NA
management environment sustainability
27 Community Schedule VII (xii) disaster Yes Assam Guwahati 14 0.40 0.40 - No Habitat for CSR00000402
projects management, including Humanity India
relief, rehabilitation and Trust
reconstruction activities
28 Community Schedule VII (ii) No MH Mumbai 14 0.48 0.48 - No Intitute of CSR00006632
projects Promoting Education Chemical
Technology
29 Community Schedule VII (vii) No MH Mumbai 14 0.35 0.35 - No Olympic Gold CSR00001100
projects Promoting nationally Quest
recognised sports
30 Community Schedule VII (ii) No MH Mumbai 14 1.00 1.00 - No Asha Sadan CSR00002137
projects Promoting Education
 (` Crore)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from the list of Local Location Project Amount Amount Amount Mode of Mode of
No. Project activities in Schedule VII Area Of the project duration allocated spent in the transferred Implem Implementation
to the Act (Yes/ for the current FY to Unspent -entation - Through
No) project CSR Account (Direct) Implementing
for the (Yes/No) Agency
project as
per Section
State Districts Name CSR
135(6)
Registration
no
31 Community Schedule VII (i) promoting Yes MH Mumbai 14 0.15 0.13 0.02 No Niramaya Health CSR00000186
projects preventive healthcare Foundation
32 Community Schedule VII (i) promoting No MH Mumbai 14 0.20 0.20 - No Live Love Laugh CSR00012198
projects preventive healthcare Foundation
33 Community Schedule VII (ii) Yes MH Mumbai 14 1.40 1.40 - No Teach To Lead CSR00002271
projects Promoting Education
34 Community Schedule VII (ii) No MH Mumbai 14 0.59 0.59 - Yes NA NA
projects Promoting Education
TOTAL 31.15 30.84 0.30

201
 (c) Details of CSR amount spent against other than ongoing projects for the financial year: NA
(d) Amount spent in Administrative Overheads

` 0.85 Crore
(e) Amount spent on Impact Assessment, if applicable.
NA
(f) Total amount spent for the Financial Year (8b+8c+8d+8e)
` 31.69 Crore

(g) Excess amount for set off, if any

Sr. Particular Amount

No.

(i) Two percent of average net profit of the company as per section 135(5) ` 31.99 Crore
(ii) Total amount spent for the Financial Year ` 31.69 Crore

(iii) Excess amount spent for the financial year [(ii)-(i)] NA

(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial NA
years, if any

(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NIL

9. (a) Details of Unspent CSR amount for the preceding three financial years:

(` Crore)
Sr. Preceding Amount Amount Amount transferred to any fund Amount
No. Financial Year transferred to spent specified under Schedule VII as remaining to
Unspent CSR in the per section 135(6), if any. be spent in
Account under reporting succeeding
section 135 (6) Financial financial years
Year
Name of Amount Date of
the Fund Transfer

1 FY21-22 6.24 5.89 - 0.35 - 0.35

2 FY20-21 0.51 0.51 - - - -
3 FY19-20 - - - - - -
TOTAL 6.75 6.40 - - - 0.35

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

(` Crore)

(1) (2) (3) (4) (5) (6) (7) (8)

Sr. Name of the Financial Project Total amount Amount Cumulative Status of
No. Project Year in duration allocated for spent on the amount spent the project –
which the the project project in at the end Completed /
project was the reporting of reporting Ongoing
commenced Financial Year Financial Year
1 Watershed 2017 40 months 1.80 0.31 1.40 Ongoing
2 Briquetting 2018 40 months 0.92 0.92 0.92 Ongoing
3 Covid recovery 2022 14 months 0.76 0.18 0.76 Completed
4 Covid recovery 2022 14 months 0.22 0.11 0.22 Completed
5 Covid recovery 2022 14 months 0.13 0.07 0.13 Completed
6 Covid recovery 2022 36 months 0.41 0.11 0.35 Ongoing

202
 (1) (2) (3) (4) (5) (6) (7) (8)
Sr. Name of the Financial Project Total amount Amount Cumulative Status of
No. Project Year in duration allocated for spent on the amount spent the project –
which the the project project in at the end Completed /
project was the reporting of reporting Ongoing
commenced Financial Year Financial Year
7 Covid recovery 2022 14 months 0.44 0.02 0.44 Completed
8 Beauty-preneur 2022 36 months 0.41 0.16 0.41 Ongoing
9 Beauty-preneur 2022 36 months 0.26 0.21 0.26 Ongoing
10 Beauty-preneur 2022 24 months 0.23 0.07 0.23 Completed
11 Beauty-preneur 2022 14 months 0.14 0.04 0.14 Ongoing
12 Beauty-preneur 2022 24 months 0.25 0.10 0.25 Ongoing
13 Beauty-preneur 2022 24 months 0.21 0.001 0.21 Completed
14 Beauty-preneur 2022 14 months 0.18 0.09 0.18 Completed
15 EMBED 2022 24 months 3.43 0.54 3.43 Ongoing
16 EMBED 2022 24 months 1.63 0.56 1.63 Ongoing

17 EMBED 2022 24 months 2.35 0.70 2.35 Ongoing

18 EMBED 2022 24 months 0.22 0.06 0.22 Completed
19 Waste 2022 36 months 4.05 1.87 3.77 Ongoing
management
20 Community 2022 24 months 0.17 0.08 0.17 Completed
21 Beauty-preneur 2021 36 months 0.75 0.19 0.75 Completed
6.40

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details).

(` Crore)

Sr. Date of Amount of CSR Details of the entity Provide details of the capital
No. creation or spent for creation or public authority or asset(s) created or acquired
acquisition or acquisition of beneficiary under whose (including complete address and
of the capital capital asset name such capital asset is location of the capital)
asset(s) registered, their address etc.

NIL

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
section 135(5).

GCPL spent 99% of its spend target in FY23 and only 1% remained unutilised under ongoing projects. INR 30.44
lakhs (0.9% of spend target) was transferred by three IPs in Apr 2023. The amount remaining unutilised was due to
delays in project implementation by project partners.

Sd/- Sd/-
Sudhir Sitapati Nadir Godrej
Managing Director & Chief Executive Officer Chairman of CSR Committee

203
 ANNEXURE ‘F’

AS PER THE DISCLOSURE REQUIREMENT SPECIFIED UNDER THE 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 AND DEBENTURES), RULES, 2014, THE FOLLOWING INFORMATION IS
DISCLOSED IN RESPECT OF EMPLOYEE STOCK BENEFIT PLANS:

Sr. Particulars Godrej Consumer Products Limited

No. Employee Stock Grant Scheme
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 25,00,000
Scheme
3 Vesting requirements As specified by the Nomination and 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 and Remuneration
Committee as per the prevalent regulatory provisions
6 Source of shares Direct allotment
7 Variation of terms of options None
8 Number of options outstanding as on April 1, 2022 6,16,102
9 Number of fresh options granted during the year 5,29,432
10 Number of options lapsed during the year 41,060
11 Number of options vested during the year 1,16,416
12 Number of options exercised during the year 1,14,239
13 Number of shares arising as a result of exercise of options 1,14,239
14 Money realised by exercise of options 1,14,239
15 Number of options outstanding and exercisable at the end of 9,90,235
the year
16 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
17 Weighted-average exercise prices and weighted-average fair Exercise price: ` 1.00 per share
values of options (shall be disclosed separately for options Fair value: ` 824.69
whose exercise price either equals or exceeds or is less than
the market price of the stock)
18 Employee-wise details of options granted to —
i) Senior Managerial Personnel
ii) Any other employee who receives a grant in any one As per Note 1 below
year of option amounting to 5 per cent or more of the
option granted during that year
iii) Identified employees who were granted option, during Nil
any one year, equal to or exceeding one per cent of
the issued capital (excluding outstanding warrants and
conversions) of the company at the time of grant
19 Diluted Earnings Per Share (EPS) pursuant to issue of ` 14.80 per share (standalone)
shares on exercise of option calculated in accordance with ` 16.65 per share (consolidated)
Accounting Standard (IND AS) 33 ‘EPS’
20 Description of the method and significant assumptions The fair value of the options granted has been calculated using
used during the year to estimate the fair values of options, the Black–Scholes Options pricing formula, and the significant
including the following weighted-average information: assumptions made in this regard are as follows:
i) Risk-free interest rate 6.36 per cent
ii) Expected life 2.58 years
iii) Expected volatility 35.72 per cent
iv) Expected dividends NIL
v) The price of the underlying share in the market at the ` 900.15
time of option grant

204
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

Granted in fiscal Granted in fiscal Granted in fiscal Total

year 2020-21 year 2021-22 year 2022-23 outstanding
and outstanding and outstanding and outstanding options as at
as at March 31, as at March 31, as at March 31, March 31, 2023
2023 2023 2023
Venkateswara Yadlapalli, Head – R&D 600 851 42674* 44125
Omar Momin, Head - M&A 1000 1419 42674* 45093
Vijaykumar Kannan, Head – Business Transformation - - 42394* 42394
and Digital
Robert Menzies, Head - Category & Innovation 1250 1773 44679* 47702
Sameer Shah, Chief Financial Officer 600 851 44679* 46130
Sudhir Sitapati, Managing Director & CEO - 4,39,462* 92,329* 5,31,791
Rajesh Sethuraman, Business Head - Indonesia - - 80,970* 80,970

*Option granted was more than 5 per cent of the options granted in 1 year

ANNEXURE ‘G’ other records maintained by the (iii) The Depositories Act, 1996 and
company as well as the information the Regulations and Bye-laws
Form No MR – 3 provided by the Company, its framed thereunder;
officers, agents and authorised
FOR THE FINANCIAL YEAR
representatives during the conduct (iv) Foreign Exchange
ENDED MARCH 31, 2023
of secretarial audit, we hereby report Management Act, 1999 and
that in our opinion, the Company the rules and regulations made
[Pursuant to Section 204(1) of the
has, during the audit period covering thereunder to the extent of
Companies Act, 2013 and Rule No.
the financial year ended on March Foreign Direct Investment,
9 of the Companies (Appointment
31, 2023 complied with the statutory Overseas Direct Investment
and Remuneration of Managerial
provisions listed hereunder and and External Commercial
Personnel) Rules, 2014]
also that the Company has proper Borrowings;
The Members, Board processes and compliance
Godrej Consumer Products Limited (v) The following Regulations and
mechanism in place to the extent, in
Guidelines prescribed under
the manner reported and subject to
We have conducted the secretarial the Securities and Exchange
the reporting made hereinafter:
audit of the compliance of Board of India Act, 1992 (‘SEBI
applicable statutory provisions and We have examined the books, Act’):-
the adherence to good corporate papers, minute books, forms and
practices by Godrej Consumer (a) The Securities and
returns filed and other records
Products Limited (hereinafter called Exchange Board of India
maintained by company, for the
the ‘Company’). The Secretarial (Substantial Acquisition
financial year ended on March 31,
Audit was conducted in a manner of Shares and Takeovers)
2023 according to the provisions of:
that provided us a reasonable Regulations, 2011;
basis for evaluating the corporate (i) The Companies Act, 2013
(b) The Securities and
conducts/statutory compliances and (the Act) and the rules made
Exchange Board of India
expressing our opinion thereon. thereunder;
(Prohibition of Insider
Based on our verification of the (ii) The Securities Contracts Trading) Regulations,
Company’s books, papers, minute (Regulation) Act, 1956 and the 2015; *
books, forms and returns filed and rules made thereunder;

205
 (c) The Securities and BSE Limited had carried out with the above laws applicable
Exchange Board of India inspection of the Structured specifically to the Company.
(Issue of Capital and Digital Database maintained
Disclosure Requirements) by the Company and the We further report that
Regulations, 2018; Company has responded to the
The Board of Directors of the
observations / queries raised
(d) The Securities and Company is duly constituted with
by BSE Limited.
Exchange Board of India a proper balance of Executive
(Share based Employee We have also examined compliance Directors, Non-Executive Directors
Benefits and Sweat with the applicable clauses of the and Independent Directors. The
Equity) Regulations, 2021; following: changes in the composition of the
Board of Directors that took place
(e) The Securities and (i) Secretarial Standards issued during the period under review were
Exchange Board of India by The Institute of Company carried out in compliance with the
(Issue and Listing of Non- Secretaries of India. provisions of the Act.
Convertible Securities)
Regulations, 2021; (ii) The SEBI (Listing Obligations Adequate notice is given to all
and Disclosure Requirements) directors to schedule the Board
(f) The Securities and Regulations, 2015 / the Listing Meetings; the agenda and related
Exchange Board of Agreements entered into by detailed notes on agenda were
India (Registrars to an the Company with the BSE sent at least seven days in advance.
Issue and Share Transfer Limited and The National Stock Furthermore, a system for seeking
Agents) Regulations, 1993 Exchange of India Limited. and obtaining further information
regarding the Companies and clarifications on the agenda
Act and dealing with During the period under review items before the meeting exists
clients; (Not applicable) the Company has complied with for meaningful participation at the
the provisions of the Acts, Rules, meeting.
(g) The Securities and Regulations, Guidelines, Standards,
Exchange Board of India etc. mentioned above. All the decisions were passed by
(Delisting of Equity majority in the meetings of the
Shares) Regulations, The other laws, as informed and Board and there were no dissenting
2009; (Not applicable) certified by the Management of views from the Board members.
and the Company which are specifically
applicable to the Company based on We further report that there are
(h) The Securities and their sector/industry are: adequate systems and processes
Exchange Board of India in the Company, commensurate
(Buyback of Securities) a. Insecticide Act, 1968 and rules with the size and operations of the
Regulations, 2018; (Not made thereunder. Company, to monitor and ensure
applicable) compliance with applicable laws,
b. Legal Metrology Act and rules
rules, regulations and guidelines.
made thereunder.
* Initially, in the Structural The Company has taken appropriate
Digital Database (SDD), the action against whistle blower
c. Drugs & Cosmetics Act, 1940.
company did not enter the complaints received.
names of designated persons
We report that, having regard to
with whom the information was We further report that during the
the compliance system prevailing in
shared within the organisation, audit period the company has:
the Company and on examination of
however, afterwards they
the relevant documents and records 1. Issued shares upon exercise of
started entering the same.
in pursuance thereof on test check
During the year under review, options under Employee Stock
basis, the Company has complied
Grant Scheme, 2011

206
2. Passed Ordinary resolution for reasonable assurances about to ensure compliance with
re-appointment of Ms. Nisaba the correctness of the contents applicable laws. The company
Godrej as Whole time Director of the records. The verification is following an electronic
designated as “Executive was done on test basis to compliance management
Chairperson” for a period of ensure that correct facts system for compliance
five years from October 1, are reflected in records. We management to ensure
2022 to September 30, 2027. believe that the processes and compliance with applicable
practices we followed provide laws, rules, regulations and
For A. N. Ramani & Co. a reasonable basis for our guidelines.
Company Secretaries
Unique Code - P2003MH000900 opinion.
7. The compliance of the
Bhavana Shewakramani 3. We have not verified provisions of Corporate and
Partner
the correctness and other applicable laws, rules,
FCS - 8636, COP – 9577
UDIN - F008636E000285871 appropriateness of the regulations and standards
financial records and is the responsibility of the
Place: Thane
books of Accounts of the management. Our examination
Date : 10th May, 2023
company. We have relied on was limited to the verification
the report of the Statutory of procedures on test basis.
Note: This report is to be read with
Auditor in respect of the
our letter of even date which is
same as per the guidance 8. The Secretarial Audit Report
annexed as Annexure A and forms
of the Institute of Company is neither an assurance as
an integral part of this report.
Secretaries of India. to the future viability of the
company nor of the efficacy or
‘Annexure A’
4. We have conducted our effectiveness with which the
audit on the basis of details management has conducted
The Members,
/ documents provided by the affairs of the company.
Godrej Consumer Products Limited
company through email and/
or other digital mode. We For A. N. Ramani & Co.
Our report of even date is to be
had visited the client for few Company Secretaries
read along with this letter. Unique Code - P2003MH000900
clarifications.

1. Maintenance of Statutory
5. Wherever required, we have
and other records are Bhavana Shewakramani
obtained the management
the responsibility of the Partner
representation about the FCS - 8636, COP – 9577
management of the company.
compliance of laws, rules and
Our responsibility is to express Place : Thane
regulations and happening of
an opinion on these records Date : 10th May, 2023
events etc.
based on our audit.

6. The Company is following a

2. We have followed the audit
system of obtaining reports
practices and processes as
from various departments
were appropriate to obtain

207
 ANNEXURE ‘H’ Management including the We further state that such
preparation and maintenance of all compliance is neither an assurance
Certificate from Practicing relevant supporting records and as to the future viability of the
Company Secretary on Compliance documents. company nor the efficiency or
with Corporate Governance effectiveness with which the
PCS Responsibility management has conducted the
To, Our examination was limited to affairs of the company.
The Members, procedures and implementation
Godrej Consumer Products Limited thereof, adopted by the company Restriction on use
for ensuring compliance with This certificate is issued solely for
We have examined the compliance the conditions of Corporate the purpose of complying with the
of conditions of corporate Governance. It is neither an audit aforesaid Regulations and may not
governance by Godrej Consumer nor an expression of opinion on the be suitable any other purpose.
Products Limited (‘the company’) financial statements of the Company.
to the year ended on March 31st
2023, as stipulated in Regulation Opinion For A. N. Ramani & Co.
17 to 27 and clauses (b) to (i) of In our opinion and to the best of Company Secretaries
regulation 46(2) and para C, D and our information and according to Unique Code - P2003MH000900
E of Schedule V of the Securities the explanations given to us and
and Exchange Board of India the representations made by the
(Listing Obligations and Disclosure Directors and the Management, Bhavana Shewakramani
Requirements) Regulation, 2015 we certify that the Company has Partner
(‘Listing Regulation’). complied with the conditions of FCS -8636, COP –9577
Corporate Governance as stipulated UDIN:- F008636E000285891
Management Responsibility in above mentioned Listing
The Compliance of conditions Regulations as applicable during the Place : Thane
of Corporate Governance is the year ended March 31, 2023. Date : 10th May, 2023
responsibility of the Company’s

208
 Report on
Corporate Governance
Company’s Philosophy stakeholders, and considering association with the

On Corporate this, it provides objective Godrej Group in the past.

Governance and prudent guidance to the The Board of Directors

management. Information also confirms that
related to the procedures, Independent Directors
Corporate governance refers to the
composition, committees, and fulfil conditions specified
framework of rules and practices
several other factors of the in Listing Regulations
through which the Board of Directors
Board is provided below. and are independent
ensures accountability, fairness,
of management. In line
and transparency in a company’s
A. Board procedures and with the accepted best
relationship with all its stakeholders.
effectiveness practices, to strengthen
the focus and quality
The Company is a part of over 125

Effective corporate of discussion at the
year young Godrej Group, which has
governance is vital to Board, GCPL’s Board
established a reputation for honesty,
us. The effectiveness of has appointed Ms.
integrity, and sound governance. Its
our Board of Directors, Ireena Vittal as the lead
philosophy on corporate governance
in particular, plays a Independent Director.
envisages attaining the highest levels
critical role in the overall She has the following
of transparency, accountability, and
functioning and growth responsibilities:
equity in all facets of its operations
of our company. Our
and interactions – whether it is with processes ensures that • 
Provide leadership
shareholders, employees, lenders, our Board is aligned to the Independent
or the government. The Company is with the interests of Directors, chair
committed to achieve and maintain our shareholders and is the Independent
the highest standards of corporate consistently striving to Directors meeting;
governance. It believes that all its enhance its performance.
actions must serve the underlying • Liaise on their
goal of enhancing the overall GCPL currently has behalf and ensure
stakeholder value over a sustained a 12-member Board, the Board’s
period. with 6 Independent effectiveness to
Directors who are maintain high-
1. BOARD OF DIRECTORS eminent professionals quality governance
from diverse fields, with of the organization;
Godrej Consumer Products expertise in finance,
Limited’s (GCPL) corporate information systems, • Taking a lead
governance practices are marketing, and corporate role, along with
shaped by its Board of strategy. None of the Chairperson in the
Directors. The Board is Independent Directors Board evaluation
committed to protect the have had any material process;
long-term interests of all our

209
 • Any other role as to guarantee that commitment to this, we
may be assigned by every Board member is conduct a formal Board
the Board sufficiently involved in Effectiveness Review in
the Board’s activities and line with the requirements
(i) Meeting and Attendance decisions. of the Companies Act,
Requirements 2013, and the SEBI
Before the (Listing Obligations and
The Board meets at commencement of Disclosure Requirements)
least once in a quarter the Audit Committee Regulations 2015.
to review the Company’s meeting, the Independent
quarterly performance Directors are given an The process is designed
and financial results. opportunity to have and executed by our
The Board meetings separate discussions Corporate HR team
are governed with a with Internal Auditor in close collaboration
structured agenda. The and Statutory Auditors, with the Chairperson
Board periodically reviews without the presence and the Nomination
compliance reports with of the management and Remuneration
respect to laws and team. For all major Committee of the
regulations applicable to items, comprehensive Board. As a part of the
the Company. background information assessment, each Board
is provided to the Board member completed
Regular participation in members to enable them a confidential online
the Board Meetings is to take an informed questionnaire, providing
crucial for the smooth decision. essential feedback on
functioning of the Board. the Board’s operations
It ensures that all the Once a year, the Board and potential areas
Board members are on members participate in for the improvement.
the same page and are a strategy meeting, in They also completed a
actively contributing which they also interact self-assessment of their
to the decision-making with the management effectiveness, ensuring
process. team of the Company. a comprehensive and
Every quarter, the balanced evaluation of
Our average Board Independent Directors our Board’s performance.
meeting attendance for also have a meeting
FY 2022-23 stands at among themselves, Familiarisation
96.03% of all meetings after which they provide programmes for the
of the board of directors. their insights to the Independent Directors
The regulations require Chairperson. covered topics such as
that every Board Meeting the Annual Operating
must have atleast (ii) Board Performance Plan for the fiscal
one-third of the Board Assessment year 2022-23, Global
members present i.e. 33% Categories Structures
of the Board strength Performance assessment & Initiatives and Cluster
including atleast one is key to maintaining wise performance and
Independent Director. and enhancing the financial updates. The
This requirement serves effectiveness of our details of the same are
Board. As part of our available on the website

210
 of the Company and can by a director has been in an organisation,
be accessed through the regulated and capped by leading to significant
following link[1] the Ministry of Corporate experience in
Affairs and SEBI. strategy or business
(iii) Board Election Process management. Brings
As of FY 2022-23, the the ability to identify
The process by which 5 Promoter group and assess strategic
Board members are directors hold 4 or opportunities
elected plays a crucial fewer other mandates in and threats in the
role in ensuring their listed entities, all the 6 context of the
accountability. The Independent Directors business.
office of atleast two hold 3 or fewer other
• Industry Expertise–
thirds of the directors mandates in listed
Has expertise
(other than Independent entities. The Managing
with respect to
Directors and Executive Director & CEO does
the sector the
Chairperson) is liable not have any other
organisation
for retirement by mandate in listed entity,
operates in. Has an
rotation, of which every demonstrating a strong
understanding of
year atleast one third commitment to our
the ‘big picture’ in
of the director retires organisation.
the given industry
and offer themselves
and recognises the
for reappointment. B. Matrix on skill sets
development of
This process allows possessed by the Board
industry segments,
shareholders to of Directors
trends, emerging
vote off such Board
At GCPL, we recognise issues, and
members if they have
the importance of having opportunities.
concerns about their
a Board comprising of
performance, thereby • Market Expertise–
directors who have a
enhancing the Board’s Has expertise
range of experiences,
overall accountability with respect to
capabilities, and diverse
and alignment with the geography
viewpoints. This helps
shareholders’ interests. the organisation
us create an effective
The average tenure of operates in.
and well-rounded Board.
the Board members as Understands the
The capabilities and
on March 31, 2023 is 10 macroeconomic
experiences sought in
years. environment,
our Directors are outlined
nuances of the
here:
(iv) External Mandates business, and
• Strategy and consumers and
The number of external Business– trade in the
directorships that Board Is or has been the geography. Has
members hold can have Chief Executive the knowledge of
significant implications Officer (CEO) or the regulations
for their commitment Chief Operating and legislations of
and performance. Officer, or has the market/(s) the
Recognising this, the total held any other business operates
number of mandates held leadership position in.

[1]
https://godrejcp.com/public/uploads/compliance_other_updates/FamiliarisationProgrammeforIDs2022-23.pdf

211
 • Technology of people in an • Diversity of
Perspective – organisation. Perspective –
Has expertise Provides diverse
• Governance,
with respect to views to the Board
Finance, and Risk –
business-specific that is valuable
Has an
technologies such for managing
understanding
as in the field our customers,
of the law and
of research and consumers,
application
development and employees, key
of corporate
manufacturing. Has stakeholders, and
governance
experience and shareholders.
principles in
adds perspective
a commercial C. Process and criteria
on the future-ready
enterprise of used for appointing new
skills required by the
a similar scale. directors
organisation such as
Capability to
e-commerce, digital, The Nomination and
provide inputs for
and sustainability. Remuneration Committee
strategic financial
evaluates the candidature
• People and Talent planning, assess
of a new director in
Understanding – financial statements,
line with the Board
Has experience in and oversee
Diversity Policy and the
human resource budgets for the
aforementioned skill
management such efficient use of
sets and makes suitable
that they bring resources. Ability
recommendation to the
in a considered to identify key risks
Board for final approval.
approach to for the business in a
The appointment of all
the effective wide range of areas
Directors is also subject
management including legal and
to shareholders’ approval.
regulatory.

Name of Directors Age Appointment Gender Committee Strategy Industry Market Tech and People Governance, Diversity of
(Years) Year Membership as and Expertise Expertise Future and Talent Finance, Perspective
on March 31, Business Perspective Understanding and Risk
2023
Ms. Nisaba Godrej 45 May 2011 F CSR, ESG √ √ √ √ √
RMC
Mr. Jamshyd Godrej 74 Mar 2001 M - √ √ √ √
Mr. Nadir B. Godrej 72 Nov 2000 M CSR,ESG √ √ √ √ √
RMC
Ms. Tanya Dubash 55 May 2011 F CSR,ESG √ √ √ √
SRC
Mr. Pirojsha Godrej 43 Apr 2017 M AC, SRC √ √ √ √
Mr. Sudhir Sitapati 47 Oct 2021 M CSR, ESG, √ √ √ √ √
RMC
Mr. Narendra 74 May 2011 M AC, NRC, √ √ √ √ √
Ambwani CSR, ESG,
SRC
Mr. Sumeet Narang 47 Apr 2019 M AC, NRC √ √ √ √ √
Mr. Omkar Goswami 67 Jun 2008 M AC, RMC √ √ √ √
Ms. Ireena Vittal 55 Apr 2013 F AC, NRC √ √ √ √ √
Ms. Ndidi Nwuneli 48 Apr 2017 F AC, ESG √ √ √ √ √
Ms. Pippa Armerding 55 Jan 2018 F AC, NRC √ √ √ √ √

CSR-Corporate Social Responsibility Committee; NRC-Nomination & Remuneration Committee; RMC-Risk

Management Committee; SRC- Stakeholders Relationship Committee; AC- Audit Committee; ESG-ESG Committee

212
D. Board Composition & other relevant details

(i) Composition of the Board

The Board composition is as follows:
Number of Directors
Category
as on March 31, 2023
i) Non-Independent Directors
Executive Chairperson 1
Managing Director 1
Non-Executive Promoter Directors 4
Subtotal 6
ii) Independent Directors 6
Total Strength (i + ii) 12
(ii) Other relevant details of the Directors as on March 31, 2023

Committee Positions
Number of including GCPL
Directorships
Date of Held in Indian Committee
Name of Relationship With Member Shares
Original Category Public Limited Committee
Directors other Directors (Excluding Held
Appointment Companies Chairperson
(including Committee
**
GCPL)* Chairperson)
**
Nisaba May 02, 2011 Sister of Tanya Dubash Promoter/ 6 0 0 3,70,087#
Godrej and Pirojsha Godrej Executive (5)
Chairperson
Jamshyd March 01, None Promoter/ 5 0 0 0#
Godrej Non- (4)
2001
Executive
Nadir November None Promoter/ 8 2 1 63#
Godrej Non- (5)
29, 2000
Executive
Tanya May 02, 2011 Sister of Nisaba Godrej Promoter/ 7 2 0 66#
Dubash Non- (5)
and Pirojsha Godrej
Executive
Pirojsha April 01, 2017 Brother of Tanya Dubash Promoter/ 7 4 1 3,70,129#
Godrej Non- (4)
and Nisaba Godrej
Executive
Sudhir October 18, None Managing 2 0 0 60364
Sitapati Director & (1)
2021
CEO
Narendra May 02, 2011 None Non- 4 7 1 3,000#
Ambwani Executive/ (4)
Independent
Pippa January 30, None Non- 1 1 0 Nil
Armerding Executive/ (1)
2018
Independent
Sumeet April 01, 2019 None Non- 2 1 1 Nil
Narang Executive/ (2)
Independent
Omkar June 18, 2008 None Non- 2 1 0 Nil
Goswami Executive/ (2)
Independent
Ndidi April 01, 2017 None Non- 1 1 0 Nil
Nwuneli Executive/ (1)
Independent
Ireena April 30, 2013 None Non- 3 4 1 Nil
Vittal Executive/ (3)
Independent

#This shareholding reflects holding in their own name and does not include shares held as one of the trustee of
family trusts.

213
 *Does not include directorships in private companies, Section 8 companies, and foreign companies. Figures
in brackets denote directorships in listed companies.

**Does not include chairmanship/membership in Board Committees other than the Audit Committee and
Stakeholders’ Relationship Committee and chairmanship/membership in board committees in companies
other than public limited companies registered in India.

(iii) Details of directorship in other listed companies including category of their directorship as on March
31, 2023

Names of Directors Directorship in Other Listed Companies Category of Directorship

Nisaba Godrej 1. Godrej Agrovet Limited Director
2. VIP Industries Limited Independent Director
3. Mahindra and Mahindra Limited Independent Director
4. Bharti Airtel Limited Independent Director
Jamshyd Godrej 1. Godrej Industries Limited Director
2. Godrej Agrovet Limited Director
3. Godrej Properties Limited Director
Nadir Godrej 1. Godrej Industries Limited Chairman & Managing Director
2. Astec Lifesciences Limited Chairman
3. Godrej Agrovet Limited Chairman
4. Godrej Properties Limited Director
Tanya Dubash 1. Godrej Industries Limited Executive Director & Chief Brand
Officer
2. Godrej Agrovet Limited Director
3. Britannia Industries Ltd Independent Director
4. Escorts Kubota Limited Independent Director
Sudhir Sitapati NIL -
Pirojsha Godrej 1. Godrej Agrovet Limited Director
2. Godrej Properties Limited Executive Chairperson
3. Godrej Industries Limited Director
Narendra Ambwani 1. Parag Milk Foods Limited Independent Director
2. Agro Tech Foods Limited Independent Director
3. RPG Life Sciences Limited Independent Director
Pippa Tubman Armerding NIL -
Sumeet Narang 1. Sapphire Foods India Limited Director
Ndidi Nwuneli NIL -
Omkar Goswami 1. Adani Enterprises Limited Independent Director
Ireena Vittal 1. Housing Development Finance Corporation Independent Director
Limited
2. Wipro Limited Independent Director

214
E. Committees of the Board Act, 2013 inter alia looks Regulations & CSR Committee
into investor grievances. The in compliance with Section 135
The Company has constituted
Company has also formed a of the Companies Act 2013.
an Audit Committee in
Nomination and Remuneration
accordance with Section During the year the
Committee in accordance with
177 of the Companies Sustainability Committee was
Section 178 of the Companies
Act, 2013 and Regulation renamed as ESG Committee.
Act, 2013 and Regulation 19
18 of the SEBI (Listing The ESG Committee which will
of the Listing Regulations,
Obligations and Disclosure focus on environment, social
which looks after the
Requirements) Regulations, and governance areas and
appointment, remuneration,
2015 (‘Listing Regulations’). have oversight on sustainability
and performance evaluation
The Stakeholders’ Relationship risks, opportunities and
of Directors. The Company
Committee formed in progress against goals.
also has a Risk Management
accordance with Regulation 20
Committee in accordance with
of the Listing Regulations and
Regulation 21 of the Listing
Section 178 of the Companies

Composition of the Committees as on March 31, 2023

Name of Directors Position in the Committee
Category Audit Nomination & Stakeholders’ Risk CSR ESG
Committee Remuneration Relationship Management Committee Committee
Committee Committee Committee
Nisaba Godrej Promoter and Executive None None None Member Member Chairperson
Chairperson
Jamshyd Godrej Promoter and Non-Executive None None None None None None
Nadir Godrej Promoter and Non-Executive None None None Member Chairman Member
Tanya Dubash Promoter and Non-Executive None None Member None Member Member
Pirojsha Godrej Promoter and Non-Executive Member None Chairman None None None
Sudhir Sitapati Managing Director and CEO None None None Member Member Member
Narendra Ambwani Independent Member Chairman Member None Member Member
Pippa Armerding Independent Member Member None None None None
Sumeet Narang Independent Chairman Member None None None None
Omkar Goswami Independent Member None None Chairman None None
Ndidi Nwuneli Independent Member None None None None Member
Ireena Vittal Independent Member Member None None None None
Total Strength of the 7 4 3 5 5 6
Committee
Number of 6 4 1 1 1 2
Independent Directors
in the Committee
Number of Non- 1 - 2 3 4 4
Independent Directors
in the Committee
Members of Senior - - - 1 - -
Management in the
Committee
Mr. Rahul Botadara, Company Secretary & Compliance Officer, is the Secretary of all the Board Committees. He is also
responsible for redressing investor grievances.

215
 F. Terms of reference of Board (b) Changes, if any, in Review of Information
Committees accounting policies
and practices and • Reviewing, with the
(i) Audit Committee reasons for the management, the
same. statement of uses/
The terms of reference for the application of funds

Audit Committee includes the (c) Major accounting raised through an issue,

matters specified in Section such as public, rights,

entries involving
or preferential issues;
177 of the Companies Act, estimates based
the statement of funds
2013 as well as Part C of on the exercise of
utilised for purposes
Schedule II of the Listing judgment by the
other than those stated
Regulations such as: management.
in the offer document/
prospectus/notice; and
Financial Statements (d) Significant
the report submitted by
adjustments made
the agency monitoring
• Overseeing the in the financial
the utilisation of proceeds
Company’s financial statements arising
of a public or rights issue
reporting process and out of audit
and making appropriate
disclosure of its financial findings.
recommendations to the
information to ensure that
Board to initiate steps in
the financial statement (e) Compliance with this matter.
is correct, sufficient, and listing and other
credible. legal requirements • Reviewing the
relating to financial management discussion
• Reviewing, with the statements. and analysis of financial
management, the annual condition and results of
financial statements and (f) Disclosure of operations.
auditor’s report thereon any related party
before submission to the transactions. • Statement of deviations:
Board for approval, with - quarterly statement of
particular reference to: (g) Modified opinion(s) deviation(s) including the
in the draft audit report of the monitoring

(a) Matters required report. agency, if applicable,

to be included submitted to stock

• Reviewing, with the exchange(s) in terms of
in the Director’s
management, the Regulation 32(1) of the
responsibility
quarterly financial Listing Regulations.
statement to be
statements before
included in the
submission to the Board - annual statement of funds
Board’s report in
for approval. utilised for purposes
terms of clause (c)
other than those stated
of subsection (3) of
• Scrutiny of intercorporate in the offer document/
Section 134 of the prospectus/notice in
loans and investments.
Companies Act, terms of Regulation 32(7)
2013. of the Listing Regulations.

216
 Internal Control • Reviewing the adequacy Subsidiary Companies
of the internal audit
• Reviewing, with the function, if any, • The Committee shall
management, the including the structure have access to the Audit
performance of statutory of the internal audit Committee minutes of
and internal auditors, and department, staffing and the subsidiary companies.
adequacy of the internal
seniority of the official
control systems. • Reviewing the financial
heading the department,
statements, in particular
reporting structure
• Evaluation of internal the investments made by
coverage, and frequency
financial controls and risk the subsidiary companies.
of internal audit.
management systems.

• Reviewing internal • Recommending the

• Reviewing the findings of revision in the Policy for
audit reports relating to
any internal investigations determining Material
internal control weakness.
by the internal auditors Subsidiaries to align it
into matters where there • Discussion with internal with the extant applicable
is suspected fraud or auditors of any significant provisions.
irregularity, or a failure of findings and follow-up
internal control systems thereon. • Reviewing the utilisation
of a material nature, and of loans and/or advances
reporting the matter to • Discussion with statutory from/ investment in the
the Board. auditors before the audit subsidiary exceeding `
commences, about the 100 crore or 10 per cent

External and Internal Audit nature and scope of audit of the asset size of the
as well as post-audit subsidiary, whichever is
• Recommendation discussion to ascertain lower, including existing
for appointment, any area of concern. loans and advances.
remuneration, and
terms of appointment of • Reviewing and
Related Party Transactions
auditors of the Company. monitoring the auditor’s
independence and • Approval or any
• Approval of payment to performance, and subsequent modification
statutory auditors for any effectiveness of the audit of transactions of the
other services rendered process. Company with related
by the statutory auditors. parties.
• Periodical discussions
• Reviewing of with the auditors • Formal approval or
management letters/ about internal control omnibus approval
letters of internal control systems and the scope of transactions with
weakness issued by the of audit including the related parties or any
statutory auditors. observations of the subsequent modification
auditors and review of of transactions of the
• Reviewing the the quarterly, half yearly, Company with related
appointment, and annual financial parties including their
removal, and terms of statements before basis.
remuneration of the chief submission to the Board.
internal auditor. Overseeing compliance of
internal control systems.

217
 • Laying down criteria • Reviewing the Chief Financial Officer
for granting omnibus effectiveness of the after assessing the
approval to related party system for monitoring qualifications, experience,
transactions. compliance with laws and background of the
and regulations and the candidate.
• Satisfy itself of the need
results of management’s
for omnibus approval of • Valuation of undertakings
investigation and follow-
related party transactions or assets of the
up (including disciplinary
so that that the approval Company, wherever it is
action) of any instances of
is in the interest of the necessary by appointing
non- compliance.
Company. a Registered Valuer in
• Reviewing the findings terms of Section 247 of
• Granting omnibus
of any examinations by the Companies Act, 2013.
approval for related
regulatory agencies and
party transactions not • Instituting and overseeing
any auditor observations.
exceeding ` 1 crore per special investigations as
transaction in a financial needed.
• Reviewing the process for
year.
communicating the Code
• Performing any other
of Conduct to Company
• Reviewing on a quarterly functions and activities
personnel and for
basis, the statement of related to this terms of
monitoring compliance
such significant related reference as requested by
therewith.
party transactions as the Board of Directors.
may be specified by
• Reviewing compliance • Performing any other
the Committee and the
with respect to the functions as required to
details of related party
provisions of Insider be done by the Audit
transactions entered into
Trading Regulations at Committee as per
by the Company pursuant
least once in a financial the provisions of the
to each of the omnibus
year and verifying that Companies Act, 2013,
approval given.
the systems for internal the Listing Regulations,
• Recommending the control for compliance and any other laws or
revision in the Policy on with these regulations are regulations from time to
Material-Related Party adequate and operating time.
Transactions and on effectively.
dealing with Related (ii) Nomination and
• Obtaining regular Remuneration Committee
Party Transactions to
updates from the
align it with the extant
management regarding The terms of reference of the
applicable provisions.
compliance matters. Nomination and Remuneration
Committee are as follows:
Compliance
Other Responsibilities
• Formulation of the
• Looking into the reasons
• Reviewing the functioning criteria for determining
for substantial defaults
and compliances as qualifications,
in the payment to the
regards the Company’s positive attributes,
depositors, debenture
Whistle Blower Policy. and independence
holders, shareholders (in
of a Director and
case of non-payment of • Approval of the recommendation to
declared dividends), and appointment of the the Board of Directors
creditors, if any.

218
 a policy relating to the be done under the SEBI services being rendered
remuneration of the (Share-Based Employee by the Registrar and
Directors, key managerial Benefit) Regulations, Share Transfer Agent.
personnel, and other 2015.
employees. • Review of the various
• Performing any other measures and initiatives
• Formulation of criteria functions and activities taken by the Company for
for the evaluation related to the terms of reducing the quantum of
of performance of reference as requested by unclaimed dividends and
Independent Directors the Board of Directors. ensuring timely receipt of
and the Board of dividend warrants/ annual
Directors. • Performing any
reports/statutory notices
other functions as
by the shareholders of
• Devising a policy on the required to be done
the Company.
diversity of Board of by the Nomination and
Directors. Remuneration Committee
• Performing any other
as per the provisions of
• Identifying individuals functions and activities
the Companies Act, 2013,
who are qualified to related to the terms of
the Listing Regulations,
become Directors and reference as requested by
and any other laws or
who may be appointed the Board of Directors.
regulations from time to
in senior management
time.
in accordance with • Performing any
the criteria laid down, other functions as
(iii) Stakeholders’ Relationship
and recommending to required to be done
Committee
the Board of Directors by the Stakeholders’
their appointment and Relationship Committee
• Resolving the grievances
removal. as per the provisions of
of the security holders of
the Companies Act, 2013,
the Company, including
• Deciding whether to the Listing Regulations,
complaints relating to
extend or continue the and any other laws or
transfer/transmission
term of appointment regulations from time to
of shares, non-receipt
of the Independent time.
of Annual Report, and
Director on the basis
non-receipt of declared
of the report of (iv) Risk Management Committee
dividends; issue of new/
performance evaluation
duplicate certificates; and
of Independent Directors. • To formulate a detailed
general meetings.
risk management policy
• Recommending to the
which shall include:
Board, all remuneration, • Review of measures taken
in whatever form, payable for effective exercise
(a) A framework for
to senior management. of voting rights by
identification of internal
shareholders.
• Administering the and external risks

Employee Stock Grant specifically faced by

• Review of adherence to
Scheme of the Company the listed entity, in
the service standards
and render all such particular including
adopted by the Company
functions required to financial, operational,
in respect of various
sectoral, sustainability

219
 (particularly, ESG related or any of its Committees • Perform any other
risks), information, or the Company functions as required
cyber security risks or management. to be done by the
any other risk as may Corporate Social
be determined by the • Performing any other Responsibility Committee
Committee. functions as required as per the provisions of
to be done by the Risk the Companies Act, 2013,
(b) Measures for risk Management Committee the Listing Regulations,
mitigation including as per the provisions of and any other laws or
systems and processes the Companies Act, 2013, regulations from time to
for internal control of the Listing Regulations time.
identified risks. and any other laws or
(vi) ESG Committee
regulations from time to
(c) Business continuity plan time. • Spearhead GCPL’s overall
Sustainability ambition,
• To ensure that appropriate (v) Corporate Social strategy and long-term
methodology, processes Responsibility Committee thinking

and systems are in place • Review progress against

to monitor and evaluate • Formulate and
Sustainability goals across
risks associated with the recommend to the the company
business of the Company; Board a Corporate Social
Responsibility Policy that • Review key Sustainability
risks for GCPL, set
• To monitor and oversee shall indicate the activities
standards for monitoring,
implementation of the to be undertaken by the and sign off mitigation
risk management policy, company as specified measures
including evaluating in Schedule VII of the
• Frame key long-
the adequacy of risk Companies Act, 2013.
term Sustainability
management systems; opportunities for GCPL
• Recommend the amount
and align Board of
of expenditure to be Directors as required
• To periodically review the
incurred on the activities
risk management policy,
referred above. • Formulate and
at least once in two years, recommend to the
including by considering Board of Directors, key
• Monitor the Corporate
the changing industry Sustainability policies, as
Social Responsibility required
dynamics and evolving
Policy of the Company
complexity;
from time to time; • Performing any other
functions and activities
• Performing any other related to these terms of
• Perform any other
functions and activities reference as requested by
functions and activities the Board of Directors.
related to this terms of
related to the terms of
reference as requested
reference as requested by
by the Board of Directors
the Board of Directors.

220
G. Attendance details at Board/Committee meetings and at the last Annual General Meeting:

Nomination Corporate
Stakeholders’ Risk
Audit and Social ESG Independent
Name of Meetings Board Relationship Management AGM
Committee Remuneration Responsibility Committee Director’s
Committee Committee
Committee Committee
Number of Meetings held 4 4 3 2 1 2 2 3 1
Attendance of Directors
Jamshyd Godrej 2 NA NA NA NA NA NA NA Yes
Nadir Godrej 4 NA NA 2 NA 2 2 NA Yes
Tanya Dubash 4 NA NA 1 1 NA 1 NA Yes
Nisaba Godrej 4 NA NA 2 NA 2 2 NA Yes
Pirojsha Godrej 4 4 NA NA 1 NA NA NA Yes
Narendra Ambwani 4 4 3 2 1 NA 2 3 Yes
Sudhir Sitapati 4 NA NA 2 NA 1 2 NA Yes
Pippa Armerding 4 4 3 NA NA NA NA 3 Yes
Sumeet Narang 4 4 3 NA NA NA NA 3 Yes
Omkar Goswami 4 4 NA NA NA 2 NA 3 No
Ndidi Nwuneli 4 4 NA NA NA NA 2 3 Yes
Ireena Vittal 4 4 3 NA NA NA NA 3 Yes

Notes:

• ‘NA’ indicates not a member of the committee.

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

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

• Board meetings were held on May 19, 2022, Aug 03, 2022, Nov 08, 2022 and Jan 31, 2023.

• Audit Committee meetings were held on May 19, 2022, Aug 03, 2022, Nov 08, 2022 and Jan 31, 2023.

• Nomination and Remuneration Committee meetings were held on May 19, 2022, Nov 08, 2022 and Jan 31,
2023.

• Corporate Social Responsibility Committee meetings were held on May 19, 2022 and Nov 08, 2022.

• Stakeholders’ Relationship Committee meeting was held on Nov 08, 2022.

• Risk Management Committee meetings were held on July 25, 2022 and Jan 09, 2023.

• ESG Committee meetings were held on May 19, 2022 and Nov 08, 2022.

• Independent Directors meetings were held on May 19, 2022, Nov 08, 2022 and Jan 31, 2023.

• Annual General Meeting was held on August 03, 2022.

H. Detailed reasons for resignation of Independent Director, if any

No Independent Director has resigned during this financial year.

221
 I Reappointment of Directors Thus, Mr. Pirojsha Godrej and Their brief resume is annexed
liable to retire by rotation Mr. Nadir Godrej will retire at to the notice of the Annual
the ensuing Annual General General Meeting.
The Board has five Directors Meeting of the Company
whose period of office is 2. REMUNERATION POLICY
and, being eligible, will be
liable to be determined for considered for reappointment
retirement by rotation, and of The Remuneration Policy of the
as per the provision of
these five directors, one-third, Company has been provided in
Companies Act, 2013, Listing
i.e. two Directors, shall retire at the Board’s Report section of
Regulation and Articles of
the Annual Report as
the Annual General Meeting. Association of the Company.
Annexure ‘B’.

Remuneration to Directors:

Details of the remuneration to Directors are as follows:

Amount (`) crore

Names of Directors Sitting Fees Commission Salary, PLVR Company’s Monetary Total
on Profits Allowances Contribution Value of
and Other to PF Perquisites
Benefits
Whole-Time Directors
Nisaba Godrej - - 4.27 1.58 0.19 0.73 6.77
Sudhir Sitapati - - 5.84 3.00 0.26 5.33 14.43
Subtotal - - 10.11 4.58 0.45 6.06 21.20
Non-Executive Directors
Jamshyd Godrej 0.02 0.20 - - - - 0.22
Nadir Godrej 0.05 0.20 - - - - 0.25
Tanya Dubash 0.05 0.20 - - - - 0.25
Pirojsha Godrej 0.05 0.20 - - - - 0.25
Narendra Ambwani 0.06 0.35 - - - - 0.41
Pippa Armerding 0.06 0.35 - - - - 0.41
Omkar Goswami 0.05 0.35 - - - - 0.40
Ndidi Nwuneli 0.05 0.35 - - - - 0.40
Sumeet Narang 0.00 0.00 - - - - 0.00
Ireena Vittal 0.05 0.35 - - - - 0.40
Subtotal 0.45 2.55 0.00 0.00 0.00 0.00 3.00
Total 0.45 2.55 10.11 4.58 0.45 6.06 24.20

Notes:

• In the case of Ms. Nisaba Godrej, salary includes basic salary and various elements of flexible compensation and
reimbursement of medical expenses. The monetary value of perquisites includes accommodation and electricity
expenses, perquisites for employer’s provident fund contribution and interest.

222
• In case of Mr. Sudhir Sitapati, salary includes basic salary and various elements of flexible compensation. The
monetary value of perquisites includes perquisites for car, perquisites for employer’s provident fund contribution
and interest.

• Ms. Nisaba Godrej and Mr. Sudhir Sitapati are eligible for Performance Linked Variable Remuneration (PLVR).
PLVR is directly tied to a combination of the company’s overall business performance and the whole-time
director’s individual performance. The performance measures are calculated based on three predefined financial
and relative financial metrics – underlying volume growth, reduction in inventory & account receivables, and
EBITDA & working media growth. These financial and operating metrics are set internally by the Management
Committee and the Board of Directors. The PLVR reflected in the table above is the amount paid in FY 2022-23
for FY 2021-22. PLVR payable for FY 2022-23 will be paid in FY 2023-24, and hence will be reflected in next year’s
Annual Report.

• Members may also refer to the total rewards policy given in the Board’s Report.

• The shareholders have authorised the payment of commissions on profits to Non-Executive Directors at a rate
not exceeding 1 per cent of net profits of the Company with authority to the Board to determine the manner
and proportion in which the amount is distributed among the Non-Executive Directors. The Board has authorised
a base commission of ` 20 lakhs per annum to each Non-Executive Director. All the Independent Directors
are paid an additional commission linked to their attendance at Audit Committee meetings, Nomination and
Remuneration Committee meeting, and Independent Directors’ meeting. In addition, all the Non-Executive
Directors are paid sitting fees for attending the meetings of the Board or Committees thereof.

• Mr. Sumeet Narang has voluntarily waived the remuneration receivable from the Company.

• Dr. Omkar Goswami, Mr. Narendra Ambwani and Ms. Ireena Vittal has been originally appointed under the terms
of the erstwhile Listing Agreement (refer to 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, these
Independent Directors have been appointed for a period of 5 years and thereafter they have been reappointed
for the second term of 5 years as permitted by the Companies Act. During the year, Ms. Ndidi Nwuneli and Ms.
Pippa Armerding have been reappointed for their second term of 5 years.

3. DETAILS OF STAKEHOLDER COMPLAINTS

Total Complaints Total Complaints Total Complaints Total Complaints Complaints Not
Pending at the Received During Replied During Pending at the Resolved to the
Beginning of the Year the Year End of the Year Satisfaction of
the Year Shareholders
Nil 64 64 Nil Nil

4. GENERAL BODY MEETINGS

A. Annual General Meeting

Details of the last three Annual General Meetings of GCPL are as follows:

Date Time Venue Details of Special Resolutions Passed

August 4, 2020 04.00 p.m. Video Conferencing NIL
August 4, 2021 04:00 p.m. Video conferencing NIL
August 3, 2022 05:45 p.m. Video conferencing NIL

223
 B. Postal Ballot

Two postal ballots were conducted during the FY 2022-2023, details of the same are as given below. Both
the resolution were past by the requisite majority. Details of the scrutinizers report and voting pattern is
available on the Company website under link[2]

Date of Passing Details of Special Resolutions Procedure for Postal Ballot

of Resolution Passed
June 20, 2022 Reappointment of Ms. Ndidi In view of the exemptions granted by Ministry of Corporate Affairs,
Nwuneli (DIN No. 07738574) as the postal ballot notice was sent only through electronic mode to
an Independent director for a those Members whose e-mail addresses were registered with the
period of 5 years effective from Company/Depositories and the postal ballot was conducted by way
April 1, 2022 of remote e-voting. The postal ballot was conducted by Mr. Kalidas
Vanjpe, Practising Company Secretary.

The remote e-voting facility was provided by Link Intime India Pvt.
Ltd, the registrar and transfer agent of the Company. The e-Voting
facility was available from May 20, 2022, 9.00 a.m. (IST) to June 18,
2022, 5.00 p.m. (IST)
January 24, 2023 Reappointment of Ms. Pippa The postal ballot notice was sent by electronic mode to those
Armerding (DIN No. 08054033) shareholders whose email address was registered with the Company/
as an Independent director for a Depositories. In case of shareholders whose email address was not
period of 5 years effective from registered with the Company, the postal ballot notice and forms
January 30, 2023 were sent in physical mode. The postal ballot was conducted by Mr.
Kalidas Vanjpe, Practising Company Secretary.

Remote e-voting facility was provided by Central Depository Services

Limited. The voting including e-voting facility was available from
December 23, 2022, 9.00 a.m. (IST) to January 21, 2023, 5.00 p.m.
(IST).

5. MEANS OF posted on the Company’s audio recordings are filed

COMMUNICATION website– www.godrejcp.com. with the Stock Exchange.
The quarterly, half yearly, The same is also available
GCPL sends quarterly and annual results of the on the investor’s page of
newsletters to the registered Company’s performance are the company’s website. The
email addresses of the generally published in Business presentations made to financial
investors. Moreover, all vital Line as well as in the Marathi analysts and institutional
information related to the newspaper Lokmat. Members investors are shared with the
Company and its performance, of the management team holds Stock Exchanges and uploaded
including quarterly results, conference calls/ meetings on the company’s website.
press releases, and with financial analysts once in The same may be accessed
performance updates/ a quarter, and their transcripts through the following link[3]
corporate presentations, and are posted on the website. The Company files its quarterly
the information required by With effect from April1, 2022, results on the electronic filing
the Listing Regulations are the transcripts and link for system of the Bombay Stock

[2] [3]
https://godrejcp.com/investors/stock-exchange-filings

224
 Exchange (BSE) Limited and Reminder to Investors shareholders don’t submit
National Stock Exchange those documents then the folio
of India Limited (NSE). The Shareholders who are holding will get freezed from October
same are also available on the shares in a physical form have 1, 2023. The shareholder
websites of the BSE Limited to comply with SEBI Circular shall not be eligible to lodge
and The National Stock SEBI/HO/MIRSD/MIRSD_ grievance or avail service
RTAMB/P/CIR/2021/655 request /dividend payment
Exchange of India Limited,
dated November 3, 2021. against the folio till such time
namely https://www.bseindia.
The Company has already the documents are submitted.
com/ and www.nseindia.com,
sent requisite KYC forms to The circular can be accessed
respectively.
shareholders via ordinary through link given below[4] The
posts to update their details KYC forms can be downloaded
as required by RTA. If the through the link below[5].

6. GENERAL SHAREHOLDER INFORMATION

A. Annual General Meeting

Date and Time: Monday, August 7, 2023, 5:45 p.m. (IST)

Venue: Video Conferencing/ Other audio visual means

B. Financial Calendar

Financial Year: April 1, 2022 to March 31, 2023

C. The Board did not declare any Interim Dividends during fiscal year 2022-23, and also has not
recommended any final dividend for the Fiscal year.

D. Listing

The Company’s shares are listed and traded on the following stock exchanges:

Name and Address of the Stock Exchange Segment Stock/Scrip Code ISIN Number
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, Bandra Futures and Options (F&O)
(East), Mumbai-400051

The applicable listing fees has been paid to the stock exchanges before the due date.

[4]
https://www.sebi.gov.in/legal/circulars/nov-2021/common-and-simplified-norms-for-processing-investor-s-service-request-by-rtas-and-
norms-for-furnishing-pan-kyc-details-and-nomination_53787.html

[5]
https://web.linkintime.co.in/KYC-downloads.html

225
 E. Market Price Data

 The monthly high and low prices of GCPL at the BSE Limited and the NSE in Equity series for the year
ended March 31, 2023, are as follows:

BSE NSE
Month High Price Low Price High Price Low Price
Apr-22 832.75 739.30 832.75 739.10
May-22 838.00 745.00 838.20 747.40
Jun-22 808.10 708.60 808.45 708.50
Jul-22 898.05 750.35 898.75 750.55
Aug-22 937.20 838.70 937.95 838.00
Sep-22 955.65 859.35 956.00 859.20
Oct-22 920.50 807.75 921.00 807.35
Nov-22 888.80 793.70 888.90 793.85
Dec-22 927.15 860.90 927.95 861.45
Jan-23 946.00 872.15 946.20 877.00
Feb-23 954.90 899.35 953.70 898.55
Mar-23 972.65 895.00 973.00 894.20

Source: Websites of the respective stock exchanges

Note: High and low are in rupees per traded share

F. GCPL’s Share Price at BSE Versus the Sensex

GCPL’s share performance compared with the BSE Sensex for fiscal year 2022-23 is as follows:

GCPL’s Share Price at BSE Versus the Sensex

150

125

100

75

50

25

0
Apr/22

May/22

Jun/22

Jul/22

Aug/22

Sep/22

Oct/22

Nov/22

Dec/22

Jan/23

Feb/23

Mar/23

GCPL SENSEX

Note:
Both the BSE Sensex and GCPL share price are indexed to 100 at the beginning of the financial year.

G. Registrar and Share Transfer Agent

Link Intime India Pvt. Ltd,

Unit: Godrej Consumer Products Limited,
C-101, 247 Park, L B S Marg, Vikhroli West, Mumbai – 400 083
Tel. No.: 022-49186270
Email ID: [email protected]
Website: https://linkintime.co.in/

226
H. Share Transfer from holding the shares The above decision by
in physical form; investor SEBI is not applicable
In terms of amendments has the option of holding for demat of shares,
to Regulation 40 of Listing shares in physical form transmission (i.e.
Regulations w.e.f. 1st April, even after April 01, 2019. transfer of title of
2019, transfer of securities shares by way of
in physical form has been 2. Any investor who is inheritance / succession)
stopped by SEBI. desirous of transferring and transposition
shares (which are held (i.e. re-arrangement
SEBI has given the following in physical form) after / interchanging of
clarifications: April 01, 2019 can do so the order of name of
only after the shares are shareholders) cases.
1. The above decision does dematerialized.
not prohibit the investor

I. Distribution of Shareholding

Distribution of shareholding by size class as on March 31, 2023

Number of Number of
Number of Shares Shareholders% Shareholding %
Shareholders shares held
1-500 1,93,344 90.25 135,40,275 1.32
501-1,000 10,648 4.97 74,12,014 0.73
1,001-2,000 5,919 2.76 85,53,611 0.84
2,001-3,000 1,498 0.70 36,74,975 0.36
3,001-4,000 675 0.32 23,76,120 0.23
4,001-5,000 368 0.17 16,44,399 0.16
5,001-10,000 677 0.32 46,32,817 0.45
10,001 and above 1,102 0.51 98,08,61,107 95.91
Total 2,14,231 100.00 102,26,95,318 100.00

Distribution of shareholding by ownership as on March 31, 2023:

Shares Held Per Cent of

Category
(Number) Holding
Promoters 64,64,88,267 63.21%
Mutual Funds 3,96,63,862 3.88%
Alternate Investment Funds 38,84,884 0.38%
Banks/Financial Institutions 53,348 0.01%
Insurance Companies 2,46,75,720 2.41%
Provident Funds/ Pension Funds 45,26,058 0.44%
Foreign Portfolio Investors 24,25,96,460 23.72%
Investor Education and Protection Fund (IEPF) 24,87,358 0.24%
Private Corporate Bodies/trusts 91,58,893 0.90%
Indian Public 4,54,29,477 4.45%
NRI/OCB’s 37,30,991 0.36%
Total 102,26,95,318 100.00%

227
 Shares held (%)

Promoters 63.21%
3.88% Mutual Funds

0.38% Alternate Investment Funds

NRI/OCB’s 0.36%
Indian Public 4.45% 2.41% Insurance Companies
Private Corporate
Bodies/trusts 0.90%
Investor Education and 0.44% Provident Funds/ Pension Funds
Protection Fund (IEPF) 0.24%
Banks/Financial 23.72% Foreign Portfolio Investors
Institutions 0.01%

J. Shares Held in Physical and Dematerialised Forms

Breakup of physical and dematerialised shares as on March 31, 2023:

Number of Shares Per Cent Number of Folios Per Cent

Physical 70,71,319 0.69% 15,173 7.08%
Demat 101,56,23,999 99.31% 1,99,058 92.92%
Total 102,26,95,318 100.00 214,231 100.00

Shares held in the demateralised mode have more liquidity than those held in the physical mode. Therefore, the
Company urges shareholders holding shares in the physical form to convert their shareholdings to the demat mode.

K. Outstanding GDRs/ADRs/ L. Commodity Price Risk or the mitigation of the same

Warrants/Convertible Foreign Exchange Risk and is managed by the FOREX
Instruments and Their Impact Hedging Activities Committee of the Company.
on Equity The Committee periodically
GCPL is exposed to commodity meets and reviews the overall
GCPL does not have any risks mainly due to imported foreign exchange currency
outstanding GDRs/ADRs/ palm oil derivatives. We enter exposure and enters into
warrants/convertible into fixed price contracts with forward contracts to hedge the
instruments. overseas suppliers in order to currency risk. Details of hedged
hedge price volatility. and unhedged positions for
foreign currency exposures
Regarding commodities that are available in the Notes to
are imported at a contracted the Financial Statement of the
fixed price, there is a foreign Annual Report.
exchange currency risk and

228
 Details of the exposure of the Company to palm oil derivatives are given below:

Exposure in ` % of such exposure hedged through commodity

(Purchase orders Exposure in derivatives
Commodity Name
raised during the Qty Domestic market International Market
Total
year) OTC Exchange OTC Exchange
Palm Oil Derivatives 1,367.40 crore 1.36 Lac MT Nil Nil Nil Nil Nil

M. Plant Locations

The Company’s plants are located in the following states:

Names of States /Union Territory Location of Plants

SICOP Industrial Estate-Kathua, Hatli Moth-Kathua, Industrial Area Phase III Lane
Jammu & Kashmir
2, Bari Brahmana- Distt Sambha
Himachal Pradesh Thana-Baddi, Katha-Baddi
Sikkim Mamring, South Sikkim
Assam Kalapahar-Guwahati, Brahamputra industrial park-village silla, Sarusajai-lokhra
Meghalaya Byrnihat, Rebhoi District
Madhya Pradesh Malanpur Industrial Area, District Bhind
Kattukuppam-Manpet Post, Nallur Village-Mannadipet Commune, Nedungadu
Pondicherry
Commune-Karaikal, Thirunallar Commune-Karaikal
Tamil Nadu Maraimalai nagar-Chengalpattu District

N. Address for Correspondence Tel. No.: 022 25188010/20/30 Long-term / Short-term, Fund
relating to queries of GCPL Fax No.: 022 25188040; based / Non-fund Based
shares Email ID: investor.relations@ Facilities
godrejcp.com
Investor correspondence P. Consolidation of Shares under
should be addressed to M/s. Website: One Folio
Link Intime India Pvt. Ltd, www.godrejcp.com
Unit: Godrej Consumer The Company urges
Products Limited, C-101, 247 O. List of Credit Ratings shareholders holding shares
Park, L B S Marg, Vikhroli West, Obtained during the Year of GCPL under different folios
Mumbai – 400 083. Tel. No.: to consolidate the shares
During the year, rating under one folio. This would
022-49186270 Email ID:
agencies have reaffirmed the substantially reduce paperwork
rnt.helpdesk@ linkintime.co.in
following existing credit ratings and transaction costs and
Website: https://linkintime.
of the Company. benefit the shareholders and
co.in/
the Company. Shareholders
[ICRA] A1+ (pronounced as
Correspondence to the can do so by writing to the
ICRA A one plus) for ` 750
Company should be addressed registrar with details on folio
crore Commercial paper
to: The Secretarial Department, numbers, order of names,
Godrej Consumer Products shares held under each folio,
[Crisil] A1+ (pronounced as
Limited, 4th Floor, Godrej One, and the folio under which
Crisil A one plus) for ` 750
Pirojshanagar, Eastern Express all shareholdings should be
crore Commercial paper
Highway, Vikhroli (East), consolidated. Share certificates
Mumbai-400079. need not be sent.
[ICRA] AAA (pronounced as
CIN: L24246MH2000PLC129806
ICRA Triple A) for ` 800 Crore

229
 7. OTHER DISCLOSURES mandatory requirements, with Related Party
expected of the Transactions are available
A. Materially Significant Company. No penalties or on the link given below[6].
Related Party strictures were imposed
Transactions That May on the Company by the E. Utilisation of Funds
Potentially Conflict with stock exchanges, SEBI,
There were no funds
the Company’s Interest or any statutory authority
raised through
for matters related to
preferential allotment
During fiscal year capital markets during
or qualified institutions’
2022-23, there were no the last 3 years.
placement as specified
materially significant
under Regulation 32 (7A)
related party transactions; C. Vigil Mechanism/
during this financial year.
that is, transactions Whistle Blower Policy
of the Company of
With a view to establish a F. Unclaimed Suspense
material nature with
mechanism for protecting Account
bodies including its
employees reporting
subsidiaries, promoters, In compliance with the
unethical behaviour,
directors, management, Listing Regulations, your
frauds, or violation of
and relatives, which may Company has transferred
the Company’s Code of
have potential conflict the unclaimed shares
Conduct, the Board of
with the interests of into a demat account,
Directors have adopted a
the Company at large. namely the ‘Unclaimed
Whistle Blower Policy. No
Attention of members is Suspense Account’. As
person has been denied
drawn to disclosures of and when an allottee
access to the Audit
transactions with related approaches the Company,
Committee.
parties, as set out in after proper verification,
Notes to Accounts. the shares are credited
D. Web Link for Policies
into the demat account of
B. Details of Non- the allottee. The Voting
The Whistle Blower Policy,
Compliance rights on these shares
the Policy for determining
shall remain frozen till the
Material Subsidiaries,
There has not been rightful owner of such
and the Policy on dealing
any non- compliance of shares claims the shares.

No. of Number of
Particulars
Shareholders Shares

Aggregate number of shareholders and the outstanding shares lying in the Unclaimed
1493 851469
Suspense Account at the beginning of the year (April 1, 2022)
Number of shareholders and aggregate shares transferred to the Unclaimed Suspense
0 0
Account during the year
Number of shareholders who approached the issuer for transfer of shares from the
42 28,140
Unclaimed Suspense Account during the year and aggregate shares transferred
Number of shareholders to whom shares were transferred from the Unclaimed Suspense
0 0
Account during the year and the aggregate shares transferred
Number of shareholders to whose shares were transferred from the Unclaimed Suspense
42 28140
Account to the IEPF Account during the year and the aggregate shares transferred
Aggregate number of shareholders and the outstanding shares lying in the Unclaimed
1451 8,23,329
Suspense Account at the end of the year (March 31, 2023)

[6]
https://godrejcp.com/sustainability/codes-and-policies

230
 G. Demat Suspense H. Certificate from statutory authority. The
Account Practicing Company certificate is enclosed
Secretary on Director’s with this section as
In compliance with the Eligibility ‘Annexure A’.
Listing Regulations, your
The Company has I. Details of Total Fees
Company has opened the
received a certificate from Paid to Statutory
Suspense Escrow Demat
a company secretary in Auditors
Account for crediting
practice stating that none
the shares which are not Details of total fees for

of the Directors on the
claimed by depositing all the services paid
Board of the Company
letter of confirmation. by the Company and
have been debarred or
There are no movements its subsidiaries, on a
disqualified from being
in this account during the consolidated basis, to the
appointed or continuing
year. statutory auditor and all
as Directors of the
entities in network firms/
Companies by the SEBI,
network entity of which
Ministry of Corporate
the statutory auditor is a
Affairs, or any such other
part are as follows:

Amount ` crore
Type of Services 2022-23 2021-22
Audit Fees 7.73 6.88
Tax Fees 0.80 0.11
Others 0.45 0.49
Total 8.98 7.48

J. Disclosures in Relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and
Redressal) Act, 2013:
Received during Disposed during Pending at the
calendar year Financial year end of Financial
2022 2022 year 2022
Number of Complaints 5 5 0

K. Disclosure by listed entity and its subsidiaries of ‘Loans and advances in nature of loans to firms/companies
in which directors are interested by name and amount: NIL

L. Details of Material Subsidiaries

Name of the Material Subsidiary Date & Place of Name of Statutory Date of Appointment
Incorporation Auditors of Statutory Auditor
Godrej Africa Holdings Limited 19/01/2015, Port Louis, SM & Co 7th February, 2020
Mauritius
Strength of Nature LLC 25/02/2000, Atlanta, BSR & Co., India (KPMG 1st October,2021
Georgia India)
Godrej Consumer Products Holding 23/02/2010, Port Louis, SM & Co 7th February, 2020
Mauritius Limited Mauritius
Godrej Mauritius Africa Holdings 14/03/2011, Port Louis, SM & Co 7th February, 2020
Limited Mauritius

231
 Name of the Material Subsidiary Date & Place of Name of Statutory Date of Appointment
Incorporation Auditors of Statutory Auditor
PT Godrej Consumer Products 29/01/1996, Jakarta, KPMG – Indonesia 14th June, 2017
Indonesia (earlier known as PT Indonesia -Sidharta & Widjaja
Megasari Makmur) Registered Public
Accountants
PT Godrej Distribution Indonesia 22/08/1990, Jakarta, KPMG – Indonesia 14th June, 2017
(earlier known as PT Intrasari Raya) Indonesia -Sidharta & Widjaja
Registered Public
Accountants
Godrej SON Holdings Inc. 22/03/2016, Atlanta, BSR & Co., India 1st October,2021
Georgia, USA (KPMG India)

M. Details of Compliance with • Unmodified audit opinions / Obligations and Disclosure

Corporate Governance reporting- Requirements) Regulations,
Requirements The auditors have expressed 2015, that the Board of
an unmodified opinion in Directors of GCPL has laid
The Company has complied
their report on the financial down a Code of Conduct for all
with the requirements
statements of the Company. the Board members and senior
specified in Regulations 17 to
management of the Company.
27 and clause (b) to (i) of sub
• Internal auditor reports directly The said Code of Conduct
regulation (2) of Regulation 46
to the Audit Committee. has also been posted on the
of the Listing Regulations.
Investors page of the Company
8. PRACTICING COMPANY website www.godrejcp.com
N. Recommendation by the SECRETARY’S CERTIFICATE
Board Committees ON CORPORATE All the Board Members and
GOVERNANCE senior management personnel
There have been no instances have affirmed their compliance
of rejection by the Board for As stipulated in Para E of with the said Code of Conduct
any recommendations by the Schedule V of the Listing for the year ended March 31,
Board Committees during this Regulations, the practicing 2023.
financial year. Company Secretary’s certificate
regarding the compliance For Godrej Consumer Products Ltd.
O. Compliance with discretionary of conditions of corporate
requirements governance is attached to the sd/-
Board’s Report. Sudhir Sitapati
The Company has also Managing Director & CEO
ensured the implementation of DECLARATION BY THE Mumbai, May 10, 2023
discretionary items such as: MANAGING DIRECTOR

• Separate posts of Chairman, I, Sudhir Sitapati, Managing

and CEO & MD, with the Director & CEO of Godrej
provision for reimbursement of Consumer Products Limited
expenses in the performance (GCPL), hereby confirm
of official duties. pursuant to SEBI (Listing

232
ANNEXURE A: I/We have examined the relevant In our opinion, to the best of our
registers, records, forms, returns, information, and according to the
and disclosures received from the verifications (including Directors
CERTIFICATE OF NON-
Directors of Godrej Consumer Identification Number (DIN)
DISQUALIFICATION OF
Products Limited having CIN - status at the portal www.mca.gov.
DIRECTORS
L24246MH2000PLC129806 and in) as considered necessary and
having a registered office at explanations furnished to us by the
(Pursuant to Regulation 34(3) and
Godrej One, Pirojshanagar, Eastern Company and its officers. We hereby
Schedule V Para C clause (10)(i)
Express Highway, Vikhroli (East), certify that none of the Directors
of the SEBI (Listing Obligations
Mumbai-400079 (hereinafter on the Board of the Company as
and Disclosure Requirements)
referred to as ‘the Company’), stated below for the financial year
Regulations, 2015)
produced before us by the Company ending on March 31, 2023 have been
for the purpose of issuing this debarred or disqualified from being
To,
certificate in accordance with appointed or continuing as Directors
The Members,
Regulation 34(3) read with Schedule of companies by the Securities and
Godrej Consumer Products Limited
V Para C Subclause 10(i) of the Exchange Board of India, Ministry of
4th Floor, Godrej One, Pirojshanagar,
Securities Exchange Board of India Corporate Affairs, or any such other
Eastern Express Highway, Vikhroli
(Listing Obligations and Disclosure statutory authority.
(East), Mumbai-400079
Requirements) Regulations, 2015.

Sr. Names of Directors DIN Date of Appointment in

No. Company
1 Tanya Arvind Dubash 00026028 May 2, 2011
2 Nadir Burjor Godrej 00066195 November 29, 2000
3 Jamshyd Naoroji Godrej 00076250 March 1, 2001
4 Pirojsha Adi Godrej 00432983 April 1, 2017
5 Nisaba Adi Godrej 00591503 May 2, 2011
6 Sudhir Sitapati 09197063 October 18, 2021
7 Narendra Kumar Anand Ambwani 00236658 May 2, 2011
8 Sumeet Subhash Narang 01874599 April 1, 2019
9 Omkar Goswami 00004258 June 18, 2008
10 Ireena Vittal 05195656 April 30, 2013
11 Ndidi Okonkwo Nwuneli 07738574 April 1, 2017
12 Pippa Fametta Tubman Amerding 08054033 January 30, 2018

Ensuring the eligibility for the neither an assurance as to the future For A. N. Ramani & Co.,
appointment/continuity of every viability of the Company nor of the Company Secretaries
Director on the Board is the efficiency or effectiveness with which UNIQUE CODE-P2003MH000900
responsibility of the management of the management has conducted the Bhavana Shewakramani
the Company. Our responsibility is to affairs of the Company. Partner
express an opinion on these based FCS-8636, COP-9577
on our verification. This certificate is UDIN :- F008636E000285902
Date : May 10, 2023
Place : Thane

233
Financial
Statemen
nts
Standalone 236

Consolidated 326
 Independent
Auditors’ Report
To the Members of based on the consideration of report Accountants of India together
Godrej Consumer Products Limited of the branch auditor on financial with the ethical requirements that
statements/financial information are relevant to our audit of the
Report on the Audit of the of such branch as was audited by standalone financial statements
Standalone Financial Statements the branch auditor, the aforesaid under the provisions of the Act
standalone financial statements and the Rules thereunder, and
Opinion give the information required by we have fulfilled our other ethical
We have audited the standalone the Companies Act, 2013 (“Act”) in responsibilities in accordance with
financial statements of Godrej the manner so required and give a these requirements and the Code
Consumer Products Limited (the true and fair view in conformity with of Ethics. We believe that the audit
“Company”), which comprise the the accounting principles generally evidence obtained by us along
standalone balance sheet as at 31 accepted in India, of the state of with the consideration of report
March 2023, and the standalone affairs of the Company as at 31 of the branch auditor referred
statement of profit and loss March 2023, and its profit and other to in paragraph (a) of the “Other
(including other comprehensive comprehensive income, changes in Matters” section below, is sufficient
income), standalone statement of equity and its cash flows for the year and appropriate to provide a basis
changes in equity and standalone ended on that date. for our opinion on the standalone
statement of cash flows for the financial statements.
year then ended, and notes to the Basis for Opinion
standalone financial statements, We conducted our audit in Key Audit Matters
including a summary of significant accordance with the Standards Key audit matters are those matters
accounting policies and other on Auditing (SAs) specified under that, in our professional judgment,
explanatory information in which are Section 143(10) of the Act. Our were of most significance in our
included the Returns for the year responsibilities under those SAs are audit of the standalone financial
ended on that date audited by the further described in the Auditor’s statements of the current period.
branch auditor of the Company’s Responsibilities for the Audit of the These matters were addressed
branch at Singapore. Standalone Financial Statements in the context of our audit of the
section of our report. We are standalone financial statements as
In our opinion and to the best of independent of the Company in a whole, and in forming our opinion
our information and according to accordance with the Code of Ethics thereon, and we do not provide a
the explanations given to us, and issued by the Institute of Chartered separate opinion on these matters.

236
 Financial Statements | Standalone

Revenue recognition

See Note 34 to standalone financial statements

The key audit matter How the matter was addressed in our audit
Revenue is measured net of any discounts and rebates. Our audit procedures included:
Recognition and measurement of discounts and rebates • Assessing the compliance of revenue recognition accounting
accruals, involves judgement and estimates. This leads to a policies, including those relating to discounts and rebates, with
risk of revenue being misstated due to inaccurate estimation reference to Ind AS 115 Revenue from contracts with customers
over discounts and volume rebates. (applicable accounting standard);

Revenue is recognised when the control of the products being • Testing the design, implementation and operating effectiveness
sold has transferred to the customer. of the Company’s general IT controls and key IT application/
manual controls over the Company’s systems, with the assistance
There is a risk of revenue being overstated on account of
of our IT specialists. These IT systems enable recording of
manipulation in the timing of transfer of control, due to the
revenue and computing discounts and volume rebates in the
pressure on the Company to achieve performance targets for
general ledger accounting system;
the year.
• Performing substantive testing by selecting statistical samples
Accordingly, revenue recognition is considered to be a key of revenue transactions recorded for the year as well as period
audit matter. end cut-off and agreeing to the underlying documents, which
included sales invoices and shipping documents;

• Performing substantive testing by agreeing statistical samples of

discounts and rebate accruals and disbursements to underlying
documents;

• Performing a retrospective assessment of discounts and rebate

accruals with prior period to evaluate the historical accuracy; and

• Assessing manual journals posted to revenue to identify unusual

items.

Intangible Assets -impairment assessment

See Note 6 to standalone financial statements.

The key audit matter How the matter was addressed in our audit
The carrying amount of brands (indefinite life intangible Our audit procedures included:
assets) represent 8% of the Company’s total assets.
• Evaluating design and implementation and testing operating
effectiveness of controls over the Company’s process of
The annual impairment testing of these intangible assets by
impairment assessment and approval of forecasts;
the Company involves significant estimates and judgment
due to the inherent uncertainty involved in forecasting and • Assessing the valuation methodology and challenging the
discounting future cash flows. assumptions used, in particular those relating to forecast revenue
growth and earnings, weighted average cost of capital and
Accordingly, impairment assessment of intangible assets is royalty rates, with the assistance of our valuation specialists;
considered to be a key audit matter.
• Assessing the reliability of the financial projections prepared by
the Company by comparing projections for previous financial
years with actual results realized and analysis of significant
variances,

• Performing sensitivity analysis by assessing the effect of possible

reductions in the above assumptions on the recoverable amount;
and

• Evaluating the adequacy of disclosures in respect of impairment

evaluation of intangible assets in the standalone financial
statements.

237
 Other Information the Indian Accounting Standards Auditor’s Responsibilities for the
The Company’s Management and (Ind AS) specified under Section 133 Audit of the Standalone Financial
Board of Directors are responsible of the Act. The Management and Statements
for the other information. The Board of Directors of the Company Our objectives are to obtain
other information comprises the are responsible for maintenance reasonable assurance about whether
information included in the annual of adequate accounting records the standalone financial statements
report, but does not include the in accordance with the provisions as a whole are free from material
financial statements and auditor’s of the Act for safeguarding of the misstatement, whether due to fraud
report thereon. The annual report assets of the Company and for or error, and to issue an auditor’s
is expected to be made available preventing and detecting frauds report that includes our opinion.
to us after the date of this auditor’s and other irregularities; selection Reasonable assurance is a high
report. and application of appropriate level of assurance, but is not a
accounting policies; making guarantee that an audit conducted
Our opinion on the standalone judgments and estimates that are in accordance with SAs will always
financial statements does not cover reasonable and prudent; and design, detect a material misstatement
the other information and we will implementation and maintenance of when it exists. Misstatements can
not express any form of assurance adequate internal financial controls, arise from fraud or error and are
conclusion thereon. that were operating effectively considered material if, individually
for ensuring the accuracy and or in the aggregate, they could
In connection with our audit of the completeness of the accounting reasonably be expected to
standalone financial statements, our records, relevant to the preparation influence the economic decisions
responsibility is to read the other and presentation of the standalone of users taken on the basis of these
information identified above when financial statements that give a standalone financial statements.
it becomes available and, in doing true and fair view and are free from
so, consider whether the other material misstatement, whether due As part of an audit in accordance
information is materially inconsistent to fraud or error. with SAs, we exercise professional
with the standalone financial judgment and maintain professional
statements or our knowledge In preparing the standalone financial skepticism throughout the audit. We
obtained in the audit, or otherwise statements, the Management and also:
appears to be materially misstated. Board of Directors are responsible
for assessing the ability of the • Identify and assess the risks of
Management’s and Board of Company to continue as a going material misstatement of the
Directors’ Responsibilities for the concern, disclosing, as applicable, standalone financial statements,
Standalone Financial Statements matters related to going concern whether due to fraud or error,
The Company’s Management and and using the going concern basis design and perform audit
Board of Directors are responsible of accounting unless the Board of procedures responsive to those
for the matters stated in Section Directors either intends to liquidate risks, and obtain audit evidence
134(5) of the Act with respect to the Company or to cease operations, that is sufficient and appropriate
the preparation of these standalone or has no realistic alternative but to to provide a basis for our opinion.
financial statements that give a true do so. The risk of not detecting a material
and fair view of the state of affairs, misstatement resulting from fraud
profit/ loss and other comprehensive The Board of Directors are is higher than for one resulting
income, changes in equity and cash responsible for overseeing the from error, as fraud may involve
flows of the Company in accordance financial reporting process of the collusion, forgery, intentional
with the accounting principles Company. omissions, misrepresentations, or
generally accepted in India, including the override of internal control.

238
 Financial Statements | Standalone

• Obtain an understanding of • Evaluate the overall presentation, From the matters communicated with
internal control relevant to the structure and content of the those charged with governance, we
audit in order to design audit standalone financial statements, determine those matters that were of
procedures that are appropriate in including the disclosures, and most significance in the audit of the
the circumstances. Under Section whether the standalone financial standalone financial statements of the
143(3)(i) of the Act, we are also statements represent the current period and are therefore the
responsible for expressing our underlying transactions and events key audit matters. We describe these
opinion on whether the company in a manner that achieves fair matters in our auditor’s report unless
has adequate internal financial presentation. law or regulation precludes public
controls with reference to financial disclosure about the matter or when,
statements in place and the • Obtain sufficient appropriate audit in extremely rare circumstances, we
operating effectiveness of such evidence regarding the financial determine that a matter should not be
controls. statements/financial information communicated in our report because the
of the branch of the Company adverse consequences of doing so would
• Evaluate the appropriateness of to express an opinion on the reasonably be expected to outweigh
accounting policies used and the standalone financial statements. the public interest benefits of such
reasonableness of accounting For the branch included in the communication.
estimates and related disclosures standalone financial statements,
made by the Management and which has been audited by Other Matter
Board of Directors. branch auditor, such branch
auditor remains responsible for a. We did not audit the
• Conclude on the appropriateness the direction, supervision and financial statements/financial
of the Management and Board performance of the audit carried information of one branch
of Directors use of the going out by them. We remain solely included in the standalone
concern basis of accounting in responsible for our audit opinion. financial statements of the
preparation of standalone financial Our responsibilities in this regard Company whose financial
statements and, based on the are further described in paragraph statements/financial
audit evidence obtained, whether a (a) of the section titled “Other information reflect total assets
material uncertainty exists related Matter” in this audit report. of Rs. 0.41 crores as at 31
to events or conditions that may March 2023, total revenue of
cast significant doubt on the We communicate with those charged Rs. Nil crores, total net profit
Company’s ability to continue as a with governance regarding, among other after tax of Rs. Nil crores and
going concern. If we conclude that matters, the planned scope and timing of net cash inflows of Rs. 0.41
a material uncertainty exists, we the audit and significant audit findings, crores for the year ended on
are required to draw attention in including any significant deficiencies in that date, before giving effects
our auditor’s report to the related internal control that we identify during to consolidation adjustments,
disclosures in the standalone our audit. as considered in the standalone
financial statements or, if such financial statements. The
disclosures are inadequate, to We also provide those charged with financial statements/financial
modify our opinion. Our conclusions governance with a statement that we information of this branch has
are based on the audit evidence have complied with relevant ethical been audited by the other
obtained up to the date of our requirements regarding independence, auditor whose report has
auditor’s report. However, future and to communicate with them all been furnished to us, and our
events or conditions may cause the relationships and other matters that may opinion in so far as it relates to
Company to cease to continue as a reasonably be thought to bear on our the amounts and disclosures
going concern. independence, and where applicable, included in respect of this
related safeguards. branch, is based solely on the

239
 report of such other auditor. as it appears from financial statements
our examination of comply with the Ind
Our opinion is not modified in those books and the AS specified under
respect of this matter. report of the other Section 133 of the
auditor and proper Act.
Report on Other Legal and returns adequate
Regulatory Requirements for the purposes of f. On the basis
1. As required by the Companies our audit have been of the written
(Auditor’s Report) Order, 2020 received from the representations
(“the Order”) issued by the branches not visited received from the
Central Government of India in by us. directors as on 31
terms of Section 143(11) of the March 2023 taken
Act, we give in the “Annexure c. The report on the on record by the
A” a statement on the matters accounts of the Board of Directors,
specified in paragraphs 3 and branch office of the none of the directors
4 of the Order, to the extent Company audited is disqualified as on
applicable. under Section 31 March 2023 from
143(8) of the Act by being appointed as
2 A. As required by Section branch auditor has a director in terms of
143(3) of the Act, based been sent to us and Section 164(2) of the
on our audit and on the has been properly Act.
consideration of report dealt with by us
of the other auditor on in preparing this g. With respect to
financial statements report. the adequacy
of such branch as was of the internal
audited by other auditor, d. The standalone financial controls
as noted in the “Other balance sheet, with reference to
Matter” paragraph, we the standalone financial statements
report, to the extent statement of profit of the Company
applicable, that: and loss (including and the operating
other comprehensive effectiveness of such
a. We have sought income), the controls, refer to our
and obtained all standalone separate Report in
the information statement of “Annexure B”.
and explanations changes in equity
which to the best and the standalone B. With respect to the other
of our knowledge statement of cash matters to be included in
and belief were flows dealt with by the Auditor’s Report in
necessary for the this Report are in accordance with Rule 11
purposes of our agreement with the of the Companies (Audit
audit. books of account and Auditors) Rules, 2014,
and with the return in our opinion and to the
b. In our opinion, received from the best of our information
proper books of branch not visited by and according to the
account as required us. explanations given to
by law have us and based on the
been kept by the e. In our opinion, the consideration of the
Company so far aforesaid standalone report of the other

240
 Financial Statements | Standalone

auditor on separate or invested (either including foreign

financial statements of from borrowed entities (“Funding
the branch, as noted funds or share Parties”), with the
in the “Other Matters” premium or any understanding,
paragraph: other sources or whether recorded in
kind of funds) by writing or otherwise,
a. The Company the Company to that the Company
has disclosed the or in any other shall directly or
impact of pending person(s) or indirectly, lend
litigations as at 31 entity(ies), including or invest in other
March 2023 on its foreign entities persons or entities
financial position (“Intermediaries”), identified in any
in its standalone with the manner whatsoever
financial statements understanding, by or on behalf
- Refer Note 33 and whether recorded of the Funding
46 to the standalone in writing or Parties (“Ultimate
financial statements. otherwise, that the Beneficiaries”)
Intermediary shall or provide any
b. The Company directly or indirectly guarantee, security
did not have any lend or invest in or the like on behalf
long-term contracts other persons or of the Ultimate
including derivative entities identified Beneficiaries.
contracts for which in any manner
there were any whatsoever by or (iii) Based on the
material foreseeable on behalf of the audit procedures
losses. Company (“Ultimate performed that have
Beneficiaries”) been considered
c. There has been no or provide any reasonable and
delay in transferring guarantee, security appropriate in the
amounts, required or the like on behalf circumstances,
to be transferred, of the Ultimate nothing has come
to the Investor Beneficiaries. to our notice that
Education and has caused us to
Protection Fund by (ii) The management believe that the
the Company. of the Company representations
represented that, under sub-clause (i)
d (i) The management to the best of their and (ii) of Rule 11(e),
of the Company knowledge and as provided under
represented that, belief, as disclosed (i) and (ii) above,
to the best of their in the Note 56 (ii) contain any material
knowledge and to the standalone misstatement.
belief, as disclosed financial statements,
in the Note 56 (i) no funds have e. The Company has
to the standalone been received neither declared nor
financial statements, by the Company paid any dividend
no funds have been from any person(s) during the year.
advanced or loaned or entity(ies),

241
 f. As proviso to under Section 197(16) of Section 197 of the Act.
rule 3(1) of the the Act: The Ministry of Corporate
Companies Affairs has not prescribed
(Accounts) Rules, In our opinion and other details under
2014 is applicable according to the Section 197(16) of the Act
for the Company information and which are required to be
only with effect explanations given to commented upon by us.
from 1 April 2023, us, the remuneration
reporting under paid/payable by the For B S R & Co. LLP
Rule 11(g) of the Company to its directors Chartered Accountants
during the current Firm’s Registration No:
Companies (Audit
year is in accordance 101248W/W-100022
and Auditors)
Rules, 2014 is not with the provisions of
applicable. Section 197 of the Act. Vijay Mathur
The remuneration paid/ Partner
C. With respect to the payable to any director Membership No: 046476
matter to be included is not in excess of the UDIN: 23046476BGYAIF5985

in the Auditor’s Report limit laid down under

Mumbai: 10 May 2023

242
 Financial Statements | Standalone

Annexure A to the Independent verification is reasonable there are no proceedings

Auditor’s Report on the Standalone having regard to the initiated or pending
Financial Statements of Godrej size of the Company against the Company
Consumer Products Limited for the and the nature of its for holding any benami
year ended 31 March 2023 assets. No discrepancies property under the
were noticed on such Prohibition of Benami
(Referred to in paragraph 1 under verification. Property Transactions
‘Report on Other Legal and Act, 1988 and rules made
Regulatory Requirements’ section of (c) According to the thereunder
our report of even date) information and
explanations given to (ii) (a) The inventory, except
(i) (a) (A) The Company has us and on the basis goods-in-transit and
maintained proper of our examination stocks lying with third
records showing full of the records of the parties, has been
particulars, including Company, the title physically verified by the
quantitative details and deeds of immovable management during the
situation of Property, properties (other than year. For stocks lying with
Plant and Equipment. immovable properties third parties at the year-
where the Company is end, written confirmations
(B) The Company has the lessee and the leases have been obtained
maintained proper agreements are duly and for goods-in-transit
records showing full executed in favour of subsequent evidence
particulars of intangible the lessee) disclosed in of receipts has been
assets. the standalone financial linked with inventory
statements are held in the records. In our opinion,
(i) (b) According to the name of the Company. the frequency of such
information and verification is reasonable
explanations given to (d) According to the and procedures and
us and on the basis of information and coverage as followed
our examination of the explanations given to by management were
records of the Company, us and on the basis of appropriate. No
the Company has a our examination of the discrepancies were
regular programme of records of the Company, noticed on verification
physical verification of the Company has not between the physical
its Property, Plant and revalued its Property, stocks and the book
Equipment by which Plant and Equipment records that were
all property, plant and (including Right of Use more than 10% in the
equipment are verified assets) or intangible aggregate of each class
in a phased manner assets or both during the of inventory
over a period of 3 year.
years. In accordance (b) According to the
with this programme, (e) According to the information and
certain property, plant information and explanations given to
and equipment were explanations given to us and on the basis of
verified during the year. us and on the basis of our examination of the
In our opinion, this our examination of the records of the Company,
periodicity of physical records of the Company, the Company has not

243
 been sanctioned any provided loans or stood repayment of principal
working capital limits guarantee to any other has been regular.
in excess of five crore entity as below:
rupees in aggregate (d) According to the
from banks and financial Guarantees Loan information and
Particulars (` in (` in
institutions on the basis explanations given to
Crores) Crores)
of security of current us and on the basis of
Aggregate
assets at any point our examination of the
amount during
of time of the year. records of the Company,
the year
Accordingly, clause there is no overdue
Subsidiaries* 4.39 Nil
3(ii)(b) of the Order is amount for more than
Others Nil 0.07
not applicable to the ninety days in respect
Balance
Company. of loans given. Further,
outstanding as
the Company has not
at the balance
(iii) According to the information given any advances in
sheet date
and explanations given to the nature of loans to any
Subsidiaries* 868.88 Nil
us and on the basis of our party during the year.
Others Nil 0.08
examination of the records of
*As per the Companies Act, 2013
the Company, the Company (e) According to the
has made investments in information and
(b) According to the
and provided guarantees to explanations given to
information and
companies and other parties us and on the basis of
explanations given to us
and granted loans, unsecured our examination of the
and based on the audit
to other parties during the records of the Company,
procedures conducted
year, in respect of which the there is no loan or
by us, in our opinion the
requisite information is as advance in the nature of
investments made and
below. The Company has loan granted falling due
the terms and conditions
not provided any loans to during the year, which
of the grant of loans and
companies and security or has been renewed or
guarantees provided
advances in the nature of extended or fresh loans
during the year are, prima
loans, secured or unsecured to granted to settle the
facie, not prejudicial
companies or any other parties overdues of existing loans
to the interest of the
during the year. The Company given to same parties.
Company.
has not made any investments
in, provided guarantees or (f) According to the
(c) According to the
security, granted loans and information and
information and
advances in the nature of explanations given to
explanations given to
loans, secured or unsecured us and on the basis of
us and on the basis
to firms and limited liability our examination of the
of our examination
partnerships during the year. records of the Company,
of the records of the
the Company has not
Company, the schedule of
(a) Based on the audit granted any loans or
repayment of loans given
procedures carried advances in the nature
to employees (which
on by us and as per of loans either repayable
as per the Company’s
the information and on demand or without
policy are interest
explanations given to specifying any terms or
free) is stipulated. The
us the Company has period of repayment.

244
 Financial Statements | Standalone

(iv) According to the information accounts and records have by the Company with the
and explanations given to been made and maintained. appropriate authorities.
us and on the basis of our However, we have not carried
examination of the records of out a detailed examination According to the
the Company, the Company of the records with a view to information and
has not given any loans, or determine whether these are explanations given to
provided any guarantee or accurate or complete. us and on the basis
security as specified under of our examination
Section 185 of the Companies (vii) (a) The Company does not of the records of the
Act, 2013. In respect of have liability in respect Company, no undisputed
the investments made and of Service tax, Duty of amounts payable in
guarantees given by the excise, Sales tax and respect of Goods and
Company, in our opinion the Value added tax during Services Tax, Provident
provisions of Section 186 of the the year since effective 1 Fund, Employees State
Act have been complied with. July 2017, these statutory Insurance, Income-Tax,
The Company has not provided dues has been subsumed Duty of Customs or Cess
any security to the parties into GST. or other statutory dues
covered under Section 186 of were in arrears as at 31
the Act. According to the March 2023 for a period
information and of more than six months
(v) The Company has not accepted explanations given to from the date they
any deposits or amounts which us and on the basis of became payable.
are deemed to be deposits our examination of the
from the public. Accordingly, records of the Company, (b) According to the
clause 3(v) of the Order is not in our opinion amounts information and
applicable. deducted / accrued in explanations given to
the books of account in us and on the basis of
(vi) We have broadly reviewed the respect of undisputed our examination of the
books of accounts maintained statutory dues including records of the Company,
by the Company pursuant Goods and Services statutory dues relating
to the rules prescribed by Tax, Provident Fund, to Goods and Services
the Central Government for Employees State Tax (‘GST’), Excise duty,
maintenance of cost records Insurance, Income- Sales tax, Service tax and
under Section 148(1) of the Act Tax, Duty of Customs, Income-Tax which have
in respect of its manufactured Profession tax or Cess or not been deposited on
goods and are of the opinion other statutory dues have account of any dispute
that prima facie, the prescribed been regularly deposited are as follows:

245
 Amount paid
Period to which Forum where
Amount under
Name of the statute Nature of the dues the amount dispute is
(` in crores) protest
relates pending
(` In crores)
Central Sales tax Act and Sales tax (including interest 2002-03 to
27.43 3.82 Supreme Court
Local Sales tax Act and penalty, if applicable) 2017-18
1999-00 to
Central Sales tax Act and Sales tax (including interest 2007-08, 2009-
13.71 5.30 High court
Local Sales tax Act and penalty, if applicable) 10, 2013-14 to
2015-16
Central Sales tax Act and Sales tax (including interest 2000-03, 2005-
18.26 10.39 Tribunal
Local Sales tax Act and penalty, if applicable) 07, 2008-2018
Central Sales tax Act and Sales tax (including interest 2006-2009, 2010 Appellate
6.63 1.93
Local Sales tax Act and penalty, if applicable) -2018 Authority
Central Sales tax Act and Sales tax (including interest Joint
3.25 0.59 2016-17
Local Sales tax Act and penalty, if applicable) Commissioner
Assistant
Central Sales tax Act and Sales tax (including interest
1.19 1.02 2005-07 Commissioner (A),
Local Sales tax Act and penalty, if applicable)
Cochin
Central Sales tax Act and Sales tax (including interest 2005-06, 1998- Deputy
0.33 0.12
Local Sales tax Act and penalty, if applicable) 99 Commissioner
Central Sales tax Act and Sales tax (including interest 2001-02, 2005- Assistant
0.18 0.17
Local Sales tax Act and penalty, if applicable) 08, 2014-15 Commissioner (A)
Central Sales tax Act and Sales tax (including interest 1996-97, 2002-
7.45 3.12 Assessing Officer
Local Sales tax Act and penalty, if applicable) 2012, 2013-2016
Central Sales tax Act and Sales tax (including interest Appellate Review
0.19 - 2006-07
Local Sales tax Act and penalty, if applicable) Board
Goods and Service Tax
Goods and Service Tax 0.15 0.15 2017-18 High Court
Act
Goods and Service Tax
Goods and Service Tax 0.16 0.16 2020-21 Commissioner (A)
Act
Goods and Service Tax Sales Tax
Goods and Service Tax 0.11 0.11 2019-20
Act Authority
Goods and Service Tax 2019-20 and
Goods and Service Tax 0.50 0.03 GST Authority
Act 2021-22
Goods and Service Tax
Goods and Service Tax 0.45 0.45 2019-20 Tribunal
Act
Excise duty (including
2009, 2010-11, Commissioner
The Central Excise Act interest and penalty, if 1.34 0.61
2017-18 (Appeals)
applicable)
Excise duty (including
2008-09 to Commissioner of
The Central Excise Act interest and penalty, if 24.31 -
2011-12 Central Excise
applicable)
Customs, Excise
Excise duty (including
and Service Tax
The Central Excise Act interest and penalty, if 58.19 2.17 2004-2017
Appellate Tribunal
applicable)
of various states

246
 Financial Statements | Standalone

Amount paid
Period to which Forum where
Amount under
Name of the statute Nature of the dues the amount dispute is
(` in crores) protest
relates pending
(` In crores)
Oct-2007 to
Excise duty (including
Dec-2008,
The Central Excise Act interest and penalty, if 9.47 3.17 High Court
2010-11, 2012-
applicable)
13 to 2016-17
Excise duty (including
2007-08 to
The Central Excise Act interest and penalty, if 14.17 0.54 Supreme Court
2013-14
applicable)
Income tax (including
2006-07 to
Income tax Act, 1961 interest and penalty, if 6.41 - High court
2009-10
applicable)
2006-07,
2007-08,
2008-09,
Income tax (including 2010-11,
Income tax
Income tax Act, 1961 interest and penalty, if 6.50 - 2011-12,
Appellate Tribunal
applicable) 2012-13,
2014-15,
2016-17,
2018-19.

(viii) According to the information thereon to any lender. applicable.

and explanations given to
us and on the basis of our (b) According to the (d) According to the
examination of the records of information and information and
the Company, the Company explanations given to explanations given to
has not surrendered or us and on the basis of us and on an overall
disclosed any transactions, our examination of the examination of the
previously unrecorded as records of the Company, balance sheet of the
income in the books of the Company has not Company, we report
account, in the tax assessments been declared a wilful that no funds raised on
under the Income Tax Act, defaulter by any bank short-term basis have
1961 as income during the or financial institution been used for long-
year. or government or term purposes by the
government authority. Company.
(ix) (a) According to the
information and (c) According to the (e) According to the
explanations given to information and information and
us and on the basis of explanations given to explanations given to
our examination of the us by the management, us and on an overall
records of the Company, the Company has not examination of the
the Company has not obtained any term standalone financial
defaulted in repayment of loans during the year. statements of the
loans and borrowing or in Accordingly, clause 3(ix) Company, we report that
the payment of interest (c) of the Order is not the Company has not

247
 taken any funds from and according to the Act, where applicable,
any entity or person on the information and and the details of the related
account of or to meet explanations given to us, party transactions have been
the obligations of its considering the principles disclosed in the standalone
subsidiaries as defined of materiality outlined in financial statements as required
under the Act. Standards on Auditing, by the applicable accounting
we report that no fraud standards.
(f) According to the by the Company or on
information and the Company has been (xiv) (a) Based on information
explanations given noticed or reported and explanations
to us and procedures during the course of the provided to us and our
performed by us, we audit. audit procedures, in our
report that the Company opinion, the Company has
has not raised loans (b) According to the an internal audit system
during the year on the information and commensurate with the
pledge of securities explanations given to us, size and nature of its
held in its subsidiary no report under sub- business.
companies (as defined section (12) of Section

under the Act). 143 of the Act has been (b) We have considered the
filed by the auditors in internal audit reports of
(x) (a) The Company has not Form ADT-4 as prescribed the Company issued till
raised any moneys by under Rule 13 of the date for the period under
way of initial public Companies (Audit and audit.
offer or further public Auditors) Rules, 2014 with

offer (including debt the Central Government. (xv) In our opinion and according
instruments). Accordingly, to the information and
clause 3(x)(a) of the Order (c) We have taken into explanations given to us, the
is not applicable. consideration the whistle Company has not entered
blower complaints into any non-cash transactions
(b) According to the received by the Company
with its directors or persons
information and during the year while
connected to its directors
explanations given to determining the nature,
and hence, provisions of
us and on the basis of timing and extent of our
Section 192 of the Act are not
our examination of the audit procedures.
applicable to the Company.
records of the Company,
the Company has not (xii) According to the information
(xvi) (a) The Company is not
made any preferential and explanations given to us,
required to be registered
allotment or private the Company is not a Nidhi
under Section 45-IA of
placement of shares or Company. Accordingly, clause
the Reserve Bank of India
fully or partly convertible 3(xii) of the Order is not
Act, 1934. Accordingly,
debentures during the applicable.
clause 3(xvi)(a) of the
year. Accordingly, clause Order is not applicable.
3(x)(b) of the Order is not (xiii) In our opinion and according

applicable. to the information and

(b) The Company is not
explanations given to us,
required to be registered
(xi) (a) Based on examination the transactions with related
under Section 45-IA of
of the books and parties are in compliance
the Reserve Bank of India
records of the Company with Section 177 and 188 of

248
 Financial Statements | Standalone

Act, 1934. Accordingly, us and on the basis of the they fall due.
clause 3(xvi)(b) of the financial ratios, ageing and
Order is not applicable. expected dates of realisation (xx) (a) In our opinion and
of financial assets and payment according to the
(c) The Company is not of financial liabilities, other information and
a Core Investment information accompanying explanations given to
Company (CIC) as defined the standalone financial us, there is no unspent
in the regulations made statements, our knowledge amount under sub-
by the Reserve Bank of of the Board of Directors section (5) of Section
India. Accordingly, clause and management plans and 135 of the Act pursuant
3(xvi)(c) of the Order is based on our examination of to any project other
not applicable. the evidence supporting the than ongoing projects.

assumptions, nothing has come Accordingly, clause 3(xx)

(d) According to the (a) of the Order is not
to our attention, which causes
information and applicable.
us to believe that any material
explanations provided to
uncertainty exists as on the
us, the Group (as per the (b) In respect of ongoing
date of the audit report that
provisions of the Core projects, the Company has
the Company is not capable of
Investment Companies transferred the unspent
meeting its liabilities existing
(Reserve Bank) Directions, amount to a Special
at the date of balance sheet as
2016) does not have more Account within a period
and when they fall due within
than one CIC. of 30 days from the end
a period of one year from
of the financial year in
the balance sheet date. We,
(xvii) The Company has not incurred compliance with Section
however, state that this is not
cash losses in the current and 135(6) of the said Act.
an assurance as to the future
in the immediately preceding
viability of the Company. We
financial year. For B S R & Co. LLP
further state that our reporting Chartered Accountants
(xviii) There has been no resignation is based on the facts up to the Firm’s Registration No:

of the statutory auditors during date of the audit report and we 101248W/W-100022

the year. Accordingly, clause neither give any guarantee nor

3(xviii) of the Order is not any assurance that all liabilities

Vijay Mathur
applicable. falling due within a period of Partner
one year from the balance Membership No: 046476
(xix) According to the information sheet date, will get discharged UDIN: 23046476BGYAIF5985

and explanations given to by the Company as and when

Mumbai: 10 May 2023

249
 Annexure B to the Independent Management’s and Board of whether adequate internal financial
Auditor’s Report on the standalone Directors’ Responsibilities for controls with reference to financial
financial statements of Godrej Internal Financial Controls statements were established and
Consumer Products Limited for the The Company’s Management maintained and if such controls
year ended 31 March 2023 and the Board of Directors are operated effectively in all material
responsible for establishing and respects.
Report on the internal financial maintaining internal financial controls
controls with reference to the based on the internal financial Our audit involves performing
aforesaid standalone financial controls with reference to financial procedures to obtain audit evidence
statements under Clause (i) of Sub- statements criteria established about the adequacy of the internal
section 3 of Section 143 of the Act by the Company considering the financial controls with reference
essential components of internal to financial statements and their
(Referred to in paragraph 2(A)(g) control stated in the Guidance operating effectiveness. Our audit
under ‘Report on Other Legal and Note. These responsibilities include of internal financial controls with
Regulatory Requirements’ section of the design, implementation and reference to financial statements
our report of even date). maintenance of adequate internal included obtaining an understanding
financial controls that were of internal financial controls with
Opinion operating effectively for ensuring reference to financial statements,
We have audited the internal the orderly and efficient conduct of assessing the risk that a material
financial controls with reference its business, including adherence to weakness exists, and testing and
to financial statements of Godrej company’s policies, the safeguarding evaluating the design and operating
Consumer Products Limited (“the of its assets, the prevention and effectiveness of internal control
Company”) as of 31 March 2023 in detection of frauds and errors, the based on the assessed risk. The
conjunction with our audit of the accuracy and completeness of the procedures selected depend on the
standalone financial statements of accounting records, and the timely auditor’s judgement, including the
the Company for the year ended on preparation of reliable financial assessment of the risks of material
that date. information, as required under the misstatement of the standalone
Act. financial statements, whether due to
In our opinion, the Company has, fraud or error.
in all material respects, adequate Auditors’ Responsibility
internal financial controls with Our responsibility is to express an We believe that the audit evidence
reference to financial statements and opinion on the Company’s internal we have obtained is sufficient and
such internal financial controls were financial controls with reference to appropriate to provide a basis for
operating effectively as at 31 March financial statements based on our our audit opinion on the Company’s
2023, based on the internal financial audit. We conducted our audit in internal financial controls with
controls with reference to financial accordance with the Guidance Note reference to financial statements.
statements criteria established and the Standards on Auditing,
by the Company considering the prescribed under Section 143(10) Meaning of Internal Financial
essential components of internal of the Act, to the extent applicable Controls with Reference to
control stated in the Guidance to an audit of internal financial Financial Statements
Note on Audit of Internal Financial controls with reference to financial A company’s internal financial
Controls Over Financial Reporting statements. Those Standards and controls with reference to financial
issued by the Institute of Chartered the Guidance Note require that we statements is a process designed
Accountants of India (the “Guidance comply with ethical requirements to provide reasonable assurance
Note”). and plan and perform the audit to regarding the reliability of financial
obtain reasonable assurance about reporting and the preparation of

250
 Financial Statements | Standalone

standalone financial statements for management and directors of the financial controls with reference
external purposes in accordance company; and (3) provide reasonable to financial statements to future
with generally accepted accounting assurance regarding prevention or periods are subject to the risk that
principles. A company’s internal timely detection of unauthorised the internal financial controls with
financial controls with reference acquisition, use, or disposition of the reference to financial statements
to financial statements include company’s assets that could have may become inadequate because
those policies and procedures that a material effect on the standalone of changes in conditions, or that
(1) pertain to the maintenance of financial statements. the degree of compliance with
records that, in reasonable detail, the policies or procedures may
accurately and fairly reflect the Inherent Limitations of Internal deteriorate.
transactions and dispositions of Financial Controls with Reference
For B S R & Co. LLP
the assets of the company; (2) to Financial Statements Chartered Accountants
provide reasonable assurance Because of the inherent limitations Firm’s Registration No:
that transactions are recorded as of internal financial controls with 101248W/W-100022
necessary to permit preparation of reference to financial statements,
standalone financial statements in including the possibility of collusion
accordance with generally accepted or improper management override Vijay Mathur
accounting principles, and that of controls, material misstatements Partner
receipts and expenditures of the due to error or fraud may occur and Membership No: 046476
company are being made only in not be detected. Also, projections UDIN: 23046476BGYAIF5985
accordance with authorisations of of any evaluation of the internal
Mumbai: 10 May 2023

251
 Standalone Balance Sheet as at March 31, 2023
` Crore
Note As at As at
No. March 31, 2023 March 31, 2022
I. ASSETS
1. Non-current assets
(a) Property, plant and equipment 3 675.52 558.21
(b) Capital work-in-progress 4 21.58 76.62
(c) Right-of-use assets 5 40.10 29.84
(d) Goodwill 6 2.48 2.48
(e) Other intangible assets 6 804.49 801.27
(f) Intangible assets under development 7 3.81 1.69
(g) Financial assets
(i) Investments in subsidiaries 8 5,099.13 4,409.40
(ii) Other Investments 9 199.08 25.20
(iii) Loans 10 0.03 0.03
(iv) Others 11 17.53 23.42
(h) Deferred tax assets (Net) 12 322.03 349.91
(i) Other non-current assets 13 46.46 77.86
(j) Non-current Tax assets (Net) 14 47.91 45.96
Total Non-current assets 7,280.15 6,401.89

2. Current assets
(a) Inventories 15 591.60 790.84
(b) Financial assets
(i) Investments 16 2,109.59 766.40
(ii) Trade receivables 17 320.79 336.92
(iii) Cash and cash equivalents 18 17.69 35.23
(iv) Bank balances other than (iii) above 19 32.78 309.74
(v) Loans 20 0.05 0.05
(vi) Others 21 52.69 38.15
(c) Other current assets 22 156.04 203.85
Total Current assets 3,281.23 2,481.18

TOTAL ASSETS 10,561.38 8,883.07

II. EQUITY AND LIABILITIES
1. EQUITY
(a) Equity Share capital 23 102.27 102.26
(b) Other Equity 24 9,283.75 7,748.86
Total Equity 9,386.02 7,851.12

2. LIABILITIES
Non-current liabilities
(a) Financial Liabilities
(ia) Lease liabilities 25 28.80 20.42
(b) Provisions 26 58.93 57.43
(c) Other non-current liabilities 27 3.41 6.93
Total Non current liabilities 91.14 84.78
Current liabilities
(a) Financial liabilities
(i) Borrowings 28 23.82 -
(ii) Lease liabilities 29 13.28 11.03
(iii) Trade payables
(a) Total outstanding dues of Micro and Small Enterprises 30 46.40 23.24
(b) Total outstanding dues of creditors other than Micro and
30 664.69 602.06
Small Enterprises
(iv) Other financial liabilities 31 111.90 89.34
(b) Other current liabilities 32 157.82 155.46
(c) Provisions 33 65.35 65.08
(d) Current tax liabilities (Net) 12 0.96 0.96
Total Current liabilities 1,084.22 947.17

TOTAL EQUITY AND LIABILITIES 10,561.38 8,883.07

The accompanying notes 1 to 59 are an integral part of the Standalone Financial Statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board
Chartered Accountants
Firm Registration No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director & CEO
DIN : 00591503 DIN: 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and Compliance-
M. No. 046476 Officer

Mumbai: May 10, 2023

252
 Financial Statements | Standalone

Standalone Statement of Profit and Loss for the year ended March 31, 2023
` Crore
Note Year ended Year ended
No. March 31, 2023 March 31, 2022
Revenue
I Revenue from Operations 34 7,667.17 6,951.56
II Other Income 35 139.48 69.18
III Total Income (I + II) 7,806.65 7,020.74

IV Expenses
Cost of Materials Consumed 36 3,366.26 3,063.93
Purchases of Stock-in-Trade 295.78 325.54
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-
37 65.47 2.98
Progress
Employee Benefits Expense 38 372.19 347.52
Finance Costs 39 3.07 7.87
Depreciation and Amortization Expense 40 107.99 85.61
Other Expenses 41 1,698.70 1,483.05
Total Expenses 5,909.46 5,316.50

V Profit Before Exceptional Items and Tax (III-IV) 1,897.19 1704.24

VI Exceptional Items (net) 42 27.59 (58.21)

VII Profit Before Tax (V-VI) 1,869.60 1,762.45

VIII Tax Expense

(1) Current Tax (Refer Note 12) 328.57 306.44
(2) Deferred Tax (Refer Note 12) 27.33 (23.14)
Total Tax Expense 355.90 283.30

IX Profit for the Year (VII-VIII) 1,513.70 1,479.15

X Other Comprehensive Income

A (i) Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans 1.40 1.26
(ii) Income tax relating to items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans (0.49) (0.44)
Other Comprehensive Income for the year (A) 0.91 0.82
B (i) Items that will be reclassified to profit or loss
The effective portion of gains on hedging instruments in a cash flow
0.19 -
hedge
(ii) Income tax relating to item that will be reclassified to profit or loss
The effective portion of gains on hedging instruments in a cash flow
(0.07) -
hedge
Other Comprehensive Income for the year (B) 0.12 -
Total Other Comprehensive Income for the year (A+B) 1.03 0.82

Total Comprehensive Income for the year (IX+X) 1,514.73 1,479.97

XI Earnings per Equity Share (Face Value ` 1) 43

(1) Basic (`) 14.80 14.47
(2) Diluted (`) 14.80 14.46
The accompanying notes 1 to 59 are an integral part of the Standalone Financial Statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board
Chartered Accountants
Firm Registration No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director & CEO
DIN : 00591503 DIN: 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and Compliance-
M. No. 046476 Officer

Mumbai: May 10, 2023

253
 Standalone Statement of Cash Flows for the year ended March 31, 2023
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Tax 1,869.60 1,762.45
Adjustment for:
Non-Cash Items
Depreciation and amortisation 107.99 85.61
Unrealised Foreign Exchange (Gain) / Loss (3.95) 0.41
Bad Debts Written off 1.36 -
Provision for Doubtful Debts / Advances 7.15 0.79
Provision towards Litigations 10.62 -
Write-back for Non Moving Inventory (Net) (15.17) (13.58)
( Write-back) / Write-off of Old Balances (1.07) 0.06
Expenses on Employee Stock Grant Scheme (ESGS) 20.16 11.96
Provision / (Reversal) for diminution in the value of investments 8.82 (15.38)
Finance Costs 3.07 7.87
Loss on Fixed Assets Sold / Discarded (Net) 0.03 3.36
Profit on divestment of Associate (Net) - (42.83)
Profit on Sale of Investments (Net) (47.78) (10.90)
Fair value Gain on financial assets measured at FVTPL (5.83) (0.62)
Corporate Guarantee Commission - (0.08)
Interest income (63.02) (36.38)
Operating Cash Flows Before Working Capital Changes 1,891.98 1,752.74
Adjustments for:
Decrease / (Increase) in inventories 214.41 (78.21)
Decrease / (Increase) in trade receivables 11.94 (86.46)
Decrease in loans - 0.02
Decrease in other financial assets 9.42 37.72
Increase / (Decrease) in other non-financial assets 79.05 (56.84)
Increase / (Decrease) in trade payables, Current liabilities and other financial liabilities 109.06 (284.89)
Decrease in non - financial liabilities and provisions (8.41) (11.08)
415.47 (479.74)
Cash Generated from Operating Activities 2,307.45 1,273.00
Adjustment for:
Income taxes paid (Net) (330.46) (311.72)
Net Cash Flow from Operating Activities ( A ) 1,976.99 961.28

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment and Intangible assets (Net) (164.65) (161.35)
Proceeds from Sale of Property, Plant & Equipment and Intangibles 2.50 4.64
Purchase of Non-Current Investments (198.88) (25.00)
Proceeds from Sale of Non-Current Investments 25.20 -
Purchase of Current Investments (Net) (1,018.81) (391.09)
Investment in NCD of Subsidiaries (698.55) -
Investments in Subsidiaries - (502.30)
Proceeds from divestment of Associate (Net) - 78.65
Interest Received 49.45 28.01

Net Cash Flow used in Investing Activities ( B ) (2,003.74) (968.44)

254
 Financial Statements | Standalone

Standalone Statement of Cash Flows for the year ended March 31, 2023
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Allotment of Equity Shares under ESGS 0.01 0.01
Borrowings from Banks 23.82 -
Repayment of Short-term loans - (0.14)
Finance costs paid (0.31) (5.89)
Principal payment of Lease liabilities (11.53) (11.98)
Finance cost paid towards Lease liabilities (2.76) (2.37)
Net Cash Flow from/(used in) Financing Activities ( C ) 9.23 (20.37)

NET DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C) (17.53) (27.53)

CASH AND CASH EQUIVALENTS (Refer Note 18)

As at the beginning of the year 35.23 62.78
Unrealised Foreign Exchange Restatement in Cash and Cash Equivalents (0.01) (0.02)
As at the end of the year 17.69 35.23

NET DECREASE IN CASH AND CASH EQUIVALENTS (17.53) (27.53)

Year ended Year ended

Movement of borrowings:
March 31, 2023 March 31, 2022
Opening balance - 0.14
Cashflows (net) 23.82 (0.14)
Closing balance 23.82 -
Notes:

1 The above Standalone Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in IND
AS 7, ‘Statement of Cash Flows.’

2 The accompanying notes 1 to 59 are an integral part of the Standalone Financial Statements.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board
Chartered Accountants
Firm Registration No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director & CEO
DIN : 00591503 DIN: 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and Compliance-
M. No. 046476 Officer

Mumbai: May 10, 2023

255
 Standalone Statement of Changes in Equity for the year ended March 31, 2023

(a) Equity share capital ` Crore

Note No.
As at April 1, 2021 102.25
Changes in equity share capital during the year 0.01
As at March 31, 2022 102.26
Changes in equity share capital during the year 23 0.01
As at March 31, 2023 102.27

(b) Other equity (Refer Note 24) ` Crore

Reserves & Surplus Other Total
Comprehensive
Income
Securities General Other Retained Effective
Premium Reserve reserves Earnings portion of Cash
Flow Hedges
Balance at April 1, 2022 1,424.93 154.05 14.78 6,155.85 (0.75) 7,748.86
Profit for the year - - - 1,513.70 - 1,513.70
Remeasurements of defined benefit plans (net of tax) - - - 0.91 - 0.91
Other comprehensive Loss / (Income) for the year - - - - 0.12 0.12
(net of tax)
Total comprehensive income for the year - - - 1,514.61 0.12 1,514.73

Premium Received on Allotment of Shares / Exercise 9.77 - (9.77) - - -

of Share options
Deferred employee compensation expense - - 20.16 - - 20.16
Balance at March 31, 2023 1,434.70 154.05 25.17 7,670.46 (0.63) 9,283.75

Reserves & Surplus Other Total

Comprehensive
Income
Securities General Other Retained Effective
Premium Reserve reserves Earnings portion of Cash
Flow Hedges
Balance at April 1, 2021 1,418.61 154.05 9.14 4,675.88 (0.75) 6,256.93
Profit for the year - - - 1,479.15 - 1,479.15
Remeasurements of defined benefit plans (net of tax) - - - 0.82 - 0.82
Total comprehensive income for the year - - - 1,479.97 - 1,479.97

Premium Received on Allotment of Shares / Exercise 6.32 - (6.32) - - -

of Share options
Deferred employee compensation expense - - 11.96 - - 11.96
Balance at March 31, 2022 1,424.93 154.05 14.78 6,155.85 (0.75) 7,748.86

The accompanying notes 1 to 59 are an integral part of the Standalone Financial Statements.
As per our report of even date attached
For B S R & Co. LLP For and on behalf of the Board
Chartered Accountants
Firm Registration No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director & CEO
DIN : 00591503 DIN: 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and Compliance-
M. No. 046476 Officer

Mumbai: May 10, 2023

256
 Financial Statements | Standalone

1. Corporate Information Rules, 2015 as amended from current.

Godrej Consumer Products time to time and other relevant
Limited (the Company) was provisions of the Act. b) Basis of Measurement
incorporated on November These standalone financial
29, 2000, to take over the The standalone financial statements have been
consumer products business statements have been prepared on a historical cost
of Godrej Soaps Limited prepared on accrual and basis, except for the following
(subsequently renamed as going concern basis. The assets and liabilities which have
Godrej Industries Limited), accounting policies are applied been measured at fair value:
pursuant to a Scheme of consistently to all the periods
Arrangement as approved presented in the standalone • Certain financial assets
by the High Court, Mumbai. financial statements. and liabilities (including
The Company is a fast moving derivative instruments)
consumer goods Company, All amounts disclosed in the measured at fair value
manufacturing and marketing standalone financial statements (refer accounting policy
Household and Personal Care and notes have been rounded regarding financial
products. The Company is off to the nearest crore with instruments -2.4.f),
a public Company limited 2 decimal places as per the
by shares, incorporated and requirements of Schedule III, • Defined benefit plans –
domiciled in India and is unless otherwise stated. plan assets/(liability) and
listed on the Bombay Stock share-based payments
Exchange (BSE) and the The standalone financial measured at fair value
National Stock Exchange statements of the Company for (Note 50 & 51).
(NSE). The Company’s the year ended March 31, 2023
registered office is at 4th Floor, were approved for issue in 2.2 Key judgements, estimates
Godrej One, Pirojshanagar, accordance with the resolution and assumptions
Eastern Express Highway, of the Board of Directors on In preparing these standalone
Vikhroli (East), Mumbai – 400 May 10, 2023. financial statements,
079. management has made
Current versus non-current judgements, estimates and
2. Basis of preparation, classification assumptions that affect the
Measurement and Significant All assets and liabilities have application of accounting
Accounting Policies been classified as current policies and the reported
or non-current as per the amounts of assets, liabilities,
2.1 Basis of Preparation and Company’s normal operating income and expenses. Actual
measurement cycle and other criteria set results may differ from these
out in the Schedule III to the estimates.
a) Basis of Preparation Companies Act, 2013. Based
The standalone financial on the nature of products The areas involving critical
statements have been and the time taken between estimates or judgements are:
prepared in accordance with acquisition of assets for
Indian Accounting Standards processing and their realization i. Determination of the
(“Ind AS”) as notified by in cash and cash equivalents, estimated useful lives of
Ministry of Corporate Affairs the Company has ascertained tangible assets and the
pursuant to Section 133 of the its operating cycle as twelve assessment as to which
Companies Act, 2013 (‘Act’) months for the purpose of components of the cost
read with the Companies the classification of assets and may be capitalized; (Note
(Indian Accounting Standards) liabilities into current and non- 2.4 (a))

257
 ii. Determination of the 2.3 Measurement of fair values Level 2: inputs other than
estimated useful lives The Company’s accounting quoted prices included in Level
of intangible assets and policies and disclosures require 1 that are observable for the
determining intangible financial instruments to be asset or liability, either directly
assets having an measured at fair values. (i.e. as prices) or indirectly (i.e.
indefinite useful life; derived from prices).
(Note 2.4 (b)) The Company has an
established control Level 3: inputs for the asset
iii. Recognition and framework with respect or liability that are not based
measurement of defined to the measurement of on observable market data
benefit obligations, key fair values. The Company (unobservable inputs).
actuarial assumptions; uses valuation techniques
(Note 50) that are appropriate in the If the inputs used to measure
circumstances and for which the fair value of an asset or a
iv. Recognition and sufficient data are available to liability fall into different levels
measurement of measure fair value, maximizing of the fair value hierarchy, then
provisions and the use of relevant observable the fair value measurement is
contingencies, key inputs and minimizing the use categorised in its entirety in
assumptions about the of unobservable inputs. the same level of the fair value
likelihood and magnitude hierarchy as the lowest level
of an outflow of The management regularly input that is significant to the
resources; (Note 2.4 (j)) reviews significant entire measurement.
unobservable inputs and
v. Fair valuation of valuation adjustments. If The Company recognises
employee share options, third party information, transfers between levels of
Key assumptions made such as broker quotes or the fair value hierarchy at the
with respect to expected pricing services, is used to end of the reporting period
volatility; (Note 2.4 (l)(ii)) measure fair values, then the during which the change has
and Note 51 management assesses the occurred. Further information
evidence obtained from the about the assumptions made in
vi. Fair values of financial third parties to support the measuring fair value is included
instruments (Note 2.3) conclusion that such valuations in the Note 2.4.(f).
meet the requirements of Ind
vii. Impairment of financial AS, including the level in the 2.4 Significant Accounting
and Non- Financial assets fair value hierarchy in which Policies
(Note 2.4.(f)(i) and 2.4(d)) such valuations should be
classified. a) Property, Plant and
viii. Recognition of deferred Equipment
tax assets – availability Fair values are categorised Items of property, plant and
of future taxable profits into different levels in a fair equipment, other than freehold
against which deferred value hierarchy based on the land, are measured at cost less
tax assets (e.g. MAT) can inputs used in the valuation accumulated depreciation and
be used (Note 12) techniques as follows. any accumulated impairment
losses. Freehold land is carried
ix. Estimations of discounts, Level 1: quoted prices at cost and is not depreciated.
rebates and sales returns; (unadjusted) in active markets
(Note 2.4(k)) for identical assets or liabilities. The cost of an item of
property, plant and equipment

258
 Financial Statements | Standalone

comprises its purchase price, intended use as on the date of • Vehicles are depreciated
including import duties and Balance Sheet are disclosed as over a period ranging
non-refundable purchase taxes, “Capital work-in-progress”. from 5 years to 8 years
after deducting trade discounts depending on the use of
and rebates, any directly Advances paid towards the vehicles.
attributable costs of bringing acquisition of property, plant
the asset to its working and equipment outstanding Depreciation methods,
condition for its intended at each balance sheet date is useful lives and residual
use and estimated costs of classified as capital advances values are reviewed at each
dismantling and removing the under “Other Non-Current reporting date and adjusted if
item and restoring the item Assets”. appropriate.
and restoring the site on which
it is located. If significant parts Depreciation b) Goodwill and other Intangible
of an item of property, plant Assets
and equipment have different Depreciation is provided, Intangible assets acquired
useful lives, then they are under the Straight Line separately are measured
accounted for as separate Method, pro rata to the period on initial recognition at
items (major components) of of use, based on useful lives cost. The cost of intangible
property, plant and equipment. specified in Schedule II to the assets acquired in a business
Companies Act, 2013 except combination is their fair value
Any gain or loss on for the following items where at the date of acquisition.
derecognition of an item of useful lives estimated by Following initial recognition,
property, plant and equipment the management based on intangible assets are carried
is included in the statement of internal technical assessment, at cost less any amortisation
profit and loss when the item is past trends and expected and accumulated impairment
derecognised. operational lives differ from losses. Internally generated
those provided in Schedule II intangibles, excluding eligible
Subsequent costs are included of the Companies Act 2013: development costs are not
in the assets carrying amount capitalized and the related
or recognized as a separate • Leasehold land is expenditure is reflected in
asset, as appropriate only if amortised equally over the statement of profit and
it is probable that the future the lease period. loss in the period in which the
economic benefits associated expenditure is incurred.
with the item will flow to the • Leasehold Improvements
Company and that the cost are depreciated over the The useful lives of intangible
of the item can be reliably shorter of the unexpired assets are assessed as either
measured. The carrying period of the lease and finite or indefinite.
amount of any component the estimated useful life
accounted for as a separate of the assets. Goodwill
asset is derecognized when
replaced. All other repairs and • Office Equipments are Goodwill is not amortised but
maintenance are charged to depreciated over 5 to 10 it is tested for impairment
the statement of profit and loss years. annually or more frequently
during the reporting period in if events or changes in
which they are incurred. • Tools (Die sets) are circumstances indicate that
depreciated over a period the asset may be impaired,
Property, plant and equipment of 9 years, and moulds and is carried at cost less
which are not ready for over 3 years. accumulated impairment

259
 losses. Gains and losses on net disposal proceeds and d) Impairment of non-financial
the disposal of an entity the carrying amount of the assets
include the carrying amount of asset and are recognized An impairment loss is
goodwill relating to the entity in the statement of profit recognised whenever the
sold. and loss when the asset is carrying value of an asset or
derecognized. a cash-generating unit exceeds
Other intangible assets its recoverable amount.
Amortisation Recoverable amount of an
Intangible assets with finite asset or a cash-generating unit
lives are amortised over the Amortisation is calculated to is the higher of its fair value
useful economic life and write off the cost of intangible less costs of disposal and its
assessed for impairment assets less their estimated value in use. An impairment
whenever there is an indication residual values using the loss, if any, is recognised in
that the intangible asset may straight-line method over their the Statement of Profit and
be impaired. The amortization estimated useful lives, and is Loss in the period in which the
method and period are recognised in Statement of impairment takes place. The
reviewed at least at the end profit and loss. impairment loss is allocated
of each reporting period. first to reduce the carrying
Changes in the expected The estimated useful lives amount of any goodwill (if
useful life or expected pattern for current and comparative any) allocated to the cash
of consumption of future periods are as follows: generating unit and then to
economic benefits embodied the other assets of the unit,
in the assets are considered Software licences 6 years pro rata based on the carrying
to modify amortization period Trademarks 10 years amount of each asset in the
or method, as appropriate, Technical knowhow 10 years unit.
and are treated as changes in
accounting estimates. Goodknight and Hit (Brands) Goodwill and intangible
are assessed as intangibles assets that have an indefinite
Intangible assets with indefinite having indefinite useful useful life are not subject to
useful lives are not amortised, life and are not amortised amortization and are tested
but are tested for impairment in the standalone financial annually for impairment, or
annually and whenever statements. more frequently if events or
there is an indication that changes in circumstances
the intangible asset may be Residual value, is estimated to indicate that they might
impaired. The assessment be immaterial by management be impaired. Other assets
of indefinite life is reviewed and hence has been considered are tested for impairment
annually to determine whether at ` 1. whenever events and changes
the indefinite life continues in circumstances indicate the
to be supportable. If not, c) Borrowing Costs carrying amount may not be
the change in useful life from Interest and other borrowing recoverable. An impairment
indefinite to finite is made on a costs attributable to qualifying loss recognized for goodwill is
prospective basis. assets are capitalized. Other not reversed in a subsequent
interest and borrowing costs period.
Gains or losses arising from are recognised as an expense
derecognition of an intangible in the period in which they are e) Assets held for sale
asset are measured as the incurred. Non-current assets or disposal

difference between the groups comprising of assets

260
 Financial Statements | Standalone

and liabilities are classified of financial assets that comprehensive

as ‘held for sale’ if it is highly require delivery of assets income (FVTOCI) or
probable that they will be within a time frame fair value through
recovered primarily through established by regulation statement of profit
sales rather than through or convention in the and loss (FVTPL).
continuing use. market place (regular way
trades) are recognised on Financial assets at
Subsequently, such non-current the trade date, i.e., the amortised cost
assets and disposal groups date that the Company A financial asset is
classified as held for sale commits to purchase or measured at the
are measured at lower of its sell the asset. However, amortised cost if both
carrying value and fair value trade receivables that do the following conditions
less costs to sell. Losses on not contain a significant are met: The asset is held
initial classification as held for financing component are within a business model
sale and subsequent gains and measured at transaction whose objective is to
losses on re-measurement are price. hold assets for collecting
recognised in profit and loss. contractual cash flows,
Non-current assets held for Subsequent measurement and Contractual terms
sale are not depreciated or of the asset give rise on
amortised. For the purpose specified dates to cash
of subsequent flows that are solely
f) Financial Instruments measurement, financial payments of principal
A financial instrument is any assets are classified in and interest (SPPI) on
contract that gives rise to a four categories on the the principal amount
financial asset of one entity basis of its business outstanding.
and a financial liability or equity model for managing the
instrument of another entity. financial assets and the After initial measurement,
Financial instruments also contractual cash flow such financial assets are
include derivative contracts characteristics of the subsequently measured
such as foreign currency financial asset. at amortised cost using
foreign exchange forward the Effective Interest Rate
contracts, futures and currency • Financial assets at (EIR) method. Amortised
options. amortised cost, cost is calculated by
taking into account any
(i) Financial assets • Financial assets discount or premium on
Initial recognition and at fair value acquisition and fees or
measurement through other costs that are an integral
comprehensive part of the EIR. The EIR
All financial assets are income (FVTOCI) amortisation is included
recognised initially at fair in finance income in
value plus, in the case • Financial assets at the statement of profit
of financial assets not fair value through and loss. The losses
recorded at fair value profit and loss arising from impairment
through profit or loss, (FVTPL) are recognised in the
transaction costs that statement of profit
are attributable to the • Equity instruments and loss. This category
acquisition of the financial measured at fair generally applies to trade
asset. Purchases or sales value through other and other receivables.

261
 For more information on FVOCI – equity are classified as at
receivables, refer to Note investment). This FVTPL. For all other
54(B). election is made on equity instruments, the
an investment-by- Company decides to
Financial assets at fair investment basis. classify the same either
value through other as at FVTOCI or FVTPL.
comprehensive income Financial assets at fair The Company makes such
(FVTOCI) value through profit or election on an instrument-
A debt instrument is loss (FVTPL) by-instrument basis. The
measured at FVOCI if classification is made on
it meets both of the Any financial asset, which initial recognition and is
following conditions and does not meet the criteria irrevocable.
is not designated as at for categorization as
FVTPL at amortized cost or as If the Company decides
FVTOCI, is classified as at to classify an equity
- the asset is held FVTPL. instrument as at FVTOCI,
within a business then all fair value changes
model whose In addition, the Company on the instrument,
objective is achieved may, at initial recognition, excluding dividends,
by both collecting irrevocably designate are recognized in the
contractual cash a financial asset, which Other Comprehensive
flows and selling otherwise meets Income (OCI). There
financial assets; and amortized cost or FVTOCI is no recycling of the
criteria, as at FVTPL. amounts from OCI to
- the contractual However, such election the statement of profit
terms of the is allowed only if doing and loss, even on sale of
financial asset give so reduces or eliminates investment. However, the
rise on specified a measurement or Company may transfer
dates to cash recognition inconsistency the cumulative gain or
flows that are (referred to as loss within equity.
solely payments ‘accounting mismatch’).
of principal and Equity instruments
interest on the Financial assets included included within the FVTPL
principal amount within the FVTPL category are measured
outstanding. category are measured at fair value with all
at fair value with all changes recognized in the
On initial changes recognized in statement of profit and
recognition of an the Statement of Profit loss.
equity investment and Loss. This includes all
that is not held derivative financial assets. 
Investments in
for trading, the Subsidiaries:
Company may Equity investments Investments in
irrevocably elect to All equity investments subsidiaries are carried
present subsequent within the scope of Ind- at cost less accumulated
changes in the AS 109 are measured impairment losses, if
investment’s fair at fair value. Equity any. Where an indication
value in OCI instruments which of impairment exists,
(designated as are held for trading the carrying amount

262
 Financial Statements | Standalone

of the investment is transferred its rights to at amortised cost. The

assessed and written receive cash flows from impairment methodology
down immediately to its an asset or has entered applied depends on whether
recoverable amount. On into a pass-through there has been a significant
disposal of investments arrangement, it evaluates increase in credit risk.
in subsidiaries, the if and to what extent it
difference between net has retained the risks and For trade receivables, the
disposal proceeds and rewards of ownership. Company applies a simplified
the carrying amounts When it has neither approach. It recognises
are recognized in the transferred nor retained impairment loss allowance
Statement of Profit and substantially all of the based on lifetime ECLs at
Loss. risks and rewards of the each reporting date, right
asset, nor transferred from its initial recognition.
Derecognition control of the asset, the Trade receivables are tested
A financial asset (or, where Company continues to for impairment on a specific
applicable, a part of a financial recognise the transferred basis after considering the
asset or a part of a group asset to the extent of the sanctioned credit limits,
of similar financial assets) is Company’s continuing security deposit collected etc.
primarily derecognised (i.e. involvement. In that and expectations about future
removed from the Company’s case, the Company also cash flows.
balance sheet) when: recognises an associated
liability. The transferred (ii) Financial liabilities
• The contractual rights to asset and the associated 
Initial recognition and
receive cash flows from liability are measured on measurement
the financial asset have a basis that reflects the
Financial liabilities are
expired, or rights and obligations
classified, at initial
that the Company has
recognition, as financial
• The Company has retained.
liabilities at fair value
transferred its rights to
through profit or loss
receive cash flows from Continuing involvement
or at amortised cost.
the asset or has assumed that takes the form of
A financial liability is
an obligation to pay a guarantee over the
classified at FVTPL
the received cash flows transferred asset is
if it is classified as
in full without material measured at the lower
held for trading or as
delay to a third party of the original carrying
derivatives designated
under a ‘pass-through’ amount of the asset and
as hedging instruments
arrangement; and either the maximum amount
in an effective hedge,
(a) the Company has of consideration that
as appropriate. Such
transferred substantially the Company could be
liabilities, including
all the risks and rewards required to repay.
derivatives that are
of the asset, or (b) the
liabilities, shall be
Company has neither Impairment of financial assets
subsequently measured
transferred nor retained The Company assesses on
at fair value and net gains
substantially all the risks a forward looking basis the
and losses including
and rewards of the asset, Expected Credit Losses
any interest expenses
but has transferred (ECL) associated with its
are recognised in the
control of the asset. financial assets that are debt
statement of profit or
When the Company has instruments and are carried
loss.

263
 In the case of loans substantially modified, compensation, the fair
and borrowings and such an exchange or values are accounted
payables, these are modification is treated for as contributions
measured at amortised as the derecognition of and recognised as fees
cost and recorded, net of the original liability and receivable under “other
directly attributable and the recognition of a new financial assets” or as a
incremental transaction liability. The difference in part of the cost of the
cost. Gains and losses the respective carrying investment, depending
are recognised in amounts is recognised in on the contractual terms.
Statement of Profit and the statement of profit
Loss when the liabilities and loss. Offsetting of financial
are derecognized as instruments
well as through the EIR 
Financial guarantee Financial assets and
amortisation process. contracts financial liabilities are
Financial guarantee offset and the net
Amortised cost is contracts issued by the amount is reported in the
calculated by taking into Company are those balance sheet if there is
account any discount or contracts that require a currently enforceable
premium on acquisition specified payments to legal right to offset the
and fees or costs that are be made to reimburse recognised amounts and
an integral part of the the holder for a loss there is an intention to
EIR. The EIR amortisation it incurs because the settle on a net basis, or
is included as finance specified debtor fails to to to realise the assets
costs in the statement of make a payment when and settle the liabilities
profit and loss. due in accordance with simultaneously.
the terms of a debt
The Company’s financial instrument. Financial g) Derivative financial
liabilities include trade guarantee contracts instruments and hedge
and other payables, loans are recognised initially accounting
and borrowings including as a liability at fair The Company uses derivative
bank overdrafts, financial value, adjusted for financial instruments, such as
guarantee contracts transaction costs that forward currency contracts
and derivative financial are directly attributable and cross currency interest
instruments. to the issuance of the rate swaps, to hedge its
guarantee. Subsequently, foreign currency risks. Such
Derecognition the liability is measured derivative financial instruments
A financial liability is at the higher of the are initially recognised at fair
derecognised when the amount of loss allowance value on the date on which a
obligation under the determined as per derivative contract is entered
liability is discharged impairment requirements into and are subsequently
or cancelled or expires. of Ind-AS 109 and the re-measured at fair value. Any
When an existing amount recognised less changes therein are generally
financial liability is cumulative amortisation. recognised in the statement
replaced by another of profit and loss account.
from the same lender on Where guarantees to Derivatives are carried as
substantially different subsidiaries in relation to financial assets when the fair
terms, or the terms of loans or other payables value is positive and as financial
an existing liability are are provided for, at no

264
 Financial Statements | Standalone

liabilities when the fair value is accumulated in the other value is the estimated selling
negative. equity under ‘effective portion price in the ordinary course
of cash flow hedges’. The of business, less estimated
At the inception of a hedge effective portion of changes in costs of completion and the
relationship, the Company the fair value of the derivative estimated costs necessary
formally designates and that is recognised in OCI is to make the sale. Costs are
documents the hedge limited to the cumulative computed on the weighted
relationship to which the change in fair value of the average basis and are net of
Company wishes to apply hedged item, determined GST credits.
hedge accounting and the risk on a present value basis,
management objective and from inception of the hedge. Raw materials, packing
strategy for undertaking the Any ineffective portion of materials and stores: Costs
hedge. The documentation changes in the fair value of includes cost of purchase and
includes the Company’s risk the derivative is recognised other costs incurred in bringing
management objective and immediately in the statement each product to its present
strategy for undertaking the of profit and loss. location and condition.
hedge, the hedging economic
relationship between the If a hedge no longer meets the Finish goods and work in

hedged item or transaction and criteria for hedge accounting progress: In the case of

the nature of the risk being or the hedging instrument is manufactured inventories

hedged, hedge rationale and sold, expires, is terminated and work in progress, cost
or is exercised, then hedge includes all costs of purchases,
how the entity will assess the
accounting is discontinued an appropriate share of
effectiveness of changes in the
prospectively. When hedge production overheads based
hedging instrument’s fair value
accounting for a cash flow on normal operating capacity
in offsetting the exposure to
hedge is discontinued, and other costs incurred in
changes in hedged item’s fair
the amount that has been bringing each product to its
value or cash flows attributable
accumulated in other equity present location and condition
to the hedged risk. Such
remains there until it is
hedges are expected to be
reclassified to the statement of Provision is made for cost
highly effective in achieving
profit and loss account in the of obsolescence and other
offsetting changes in fair
same period or periods as the anticipated losses, whenever
value or cash flows and are
hedged expected future cash considered necessary.
assessed on an ongoing basis
flows affect the statement of
to determine that they actually
profit and loss. If the hedged If payment for inventory is
have been highly effective
future cash flows are no longer deferred beyond normal
throughout the financial
expected to occur, then the credit terms, then the cost is
reporting periods for which
amounts that have been determined by discounting the
they are designated.
accumulated in other equity future cash flows at an interest
are immediately re-classified rate determined with reference
Cash flow hedges
to the statement of profit and to market rates. The difference
loss. between the total cost and
When a derivative is
the deemed cost is recognised
designated as a cash flow
h) Inventories as interest expense over the
hedging instrument, the
Inventories are valued at period of financing under the
effective portion of changes in
the lower of cost and net effective interest method.
the fair value of the derivative
realizable value. Net realizable
is recognised in OCI and

265
 i) Cash and Cash Equivalents A contingent asset is a possible Accumulated experience is
Cash and cash equivalents in asset that arises from past used to estimate and accrue
the balance sheet includes cash events and whose existence for the discounts (using the
at bank and on hand, deposits will be confirmed only by the most likely method) and
held at call with financial occurrence or non-occurrence returns considering the terms
institutions, other short term of one or more uncertain of the underlying schemes
highly liquid investments, with future events not wholly within and agreements with the
original maturities less than the control of the entity. customers. No element of
three months which are readily Contingent Assets are not financing is deemed present
convertible into cash and which recognised till the realization as the sales are made with
are subject to insignificant risk of the income is virtually normal credit days consistent
of changes in value. certain. However the same are with market practice. A liability
disclosed in the standalone is recognised where payments
j) Provisions, Contingent financial statements where an are received from customers
Liabilities and Contingent inflow of economic benefits is before transferring control of
Assets probable. the goods being sold
A provision is recognised
when the enterprise has a k) Revenue Recognition Royalty & Technical Fees
present obligation (legal or Revenue is recognized upon
constructive) as a result of a transfer of control of promised Royalty and Technical fees are
past event and it is probable goods to customers for recognized on accrual basis in
that an outflow of resources an amount specified in the accordance with the substance
embodying economic benefits customer contract that reflects of their relevant agreements.
will be required to settle the the consideration expected to
obligation, in respect of which be received in exchange for
a reliable estimate can be those goods. Revenue excludes Interest income
made. These are reviewed at taxes or duties collected on
each balance sheet date and behalf of the government. For all debt instruments
adjusted to reflect the current measured at amortised cost,
management estimates. Sale of goods interest income is recorded
using the effective interest
If the effect of the time value Revenue from sale of goods rate (EIR). EIR is the rate which
of money is material, provisions is recognized when control of exactly discounts the estimated
are determined by discounting goods are transferred to the future cash receipts over the
the expected future cash flows buyer which is generally on expected life of the financial
specific to the liability. The delivery for domestic sales and instrument to the gross
unwinding of the discount is on dispatch/delivery for export carrying amount of the financial
recognised as finance cost. sales asset. When calculating the
EIR, the Company estimates
Contingent Liabilities are The Company recognizes the expected cash flows by
disclosed in respect of possible revenues on the sale of considering all the contractual
obligations that arise from past products, net of returns, terms of the financial
events but their existence is discounts, amounts collected instrument (for example,
confirmed by the occurrence or on behalf of third parties (such prepayments, extensions,
non-occurrence of one or more as GST) and payments or other call and similar options). The
uncertain future events not consideration given to the expected credit losses are
wholly within the control of the customer that has impacted considered if the credit risk on
Company. the pricing of the transaction. that financial instrument has

266
 Financial Statements | Standalone

increased significantly since date. The fair value of The dilutive effect of
initial recognition. the employee share outstanding options is
options is based on the reflected as additional
Dividend income Black Scholes model share dilution in the
for time-based options computation of diluted
Dividends are recognised in and a combination of earnings per share.
the statement of profit and Monte-Carlo Simulation
loss on the date on which the and Black-Scholes Merton iii) Post-Employment
Company’s right to receive model for performance- Benefits
payment is established. based options. 
Defined Contribution
Plans
l) Employee Benefits The grant-date fair
i) Short-term Employee value of equity-settled Payments made to a
benefits share-based payment defined contribution plan
Liabilities for wages granted to employees such as Provident Fund
and salaries including is recognized as maintained with Regional
non-monetary benefits an expense, with a Provident Fund Office
that are expected to be corresponding increase in and Superannuation
settled wholly within equity, over the vesting Fund are charged as
twelve months after period of the awards. The an expense in the
the end of the period amount recognized as Statement of Profit and
in which the employees an expense is adjusted Loss as they fall due.
render the related service to reflect the number Contributions to defined
are classified as short of awards for which contribution schemes
term employee benefits the related service and such as employees’ state
and are recognized non-market performance insurance, labour welfare
as an expense in the conditions are expected fund, superannuation
Statement of Profit to be met, such that scheme, employee
and Loss as the related the amount ultimately pension scheme etc. are
service is provided. A recognized is based on charged as an expense
liability is recognised for the number of awards based on the amount of
the amount expected that meet the related contribution required to
to be paid if the service and non-market be made as and when
Company has a present performance conditions services are rendered
legal or constructive at the vesting date. For by the employees. The
obligation to pay this share-based payment above benefits are
amount as a result of awards with market classified as Defined
past service provided performance conditions Contribution Schemes
by the employee and and non-vesting as the Company has
the obligation can be conditions, the grant- no further defined
estimated reliably. date fair value of the obligations beyond the
share-based payment is monthly contributions.
ii) Share-based payments measured to reflect such
The cost of equity conditions and there is Defined Benefit Plans
settled transactions no true-up for differences
is determined by the between expected and Gratuity Fund
fair value at the grant actual outcomes. The Company has an

267
 obligation towards have earned in the and loss in subsequent
gratuity, a defined benefit current and prior periods, periods.
retirement plan covering discounting that amount
eligible employees. and deducting the fair Net interest expense
Gratuity is payable to all value of any plan assets. (income) on the net
eligible employees on defined liability (assets)
death or on separation/ The calculation of defined is computed by applying
termination in terms of benefit obligations the discount rate, used to
the provisions of the is performed at each measure the net defined
Payment of the Gratuity reporting period by a liability (asset), to the net
(Amendment) Act, 1997 qualified actuary using defined liability (asset) at
or as per the Company’s the projected unit credit the start of the financial
scheme whichever is method. When the year after taking into
more beneficial to the calculation results in a account any changes as
employees. potential asset for the a result of contribution
Company, the recognised and benefit payments
Provident Fund asset is limited to during the year. Net
Provident Fund the present value of interest expense and
Contributions which economic benefits other expenses related
are made to a Trust available in the form of to defined benefit plans
administered by the any future refunds from are recognised in the
Company are considered the plan or reductions statement of profit and
as Defined Benefit Plans. in future contributions loss.
The interest rate payable to the plan. To calculate
to the members of the the present value of When the benefits of
Trust shall not be lower economic benefits, a plan are changed or
than the statutory rate consideration is given to when a plan is curtailed,
of interest declared by any applicable minimum the resulting change in
the Central Government funding requirements. benefit that relates to
under the Employees past service or the gain
Provident Funds and Re-measurement of or loss on curtailment is
Miscellaneous Provisions the net defined benefit recognised immediately
Act, 1952 and shortfall, liability, which comprise in the statement of profit
if any, shall be made actuarial gains and and loss. The Company
good by the Company. losses, the return on recognises gains and
The Company’s liability plan assets (excluding losses on the settlement
towards interest shortfall, interest) and the effect of of a defined benefit plan
if any, is actuarially the asset ceiling (if any, when the settlement
determined at the year excluding interest), are occurs.
end. recognised immediately
in the balance sheet with iv) Other Long Term
The Company’s net a corresponding debit Employee Benefits
obligation in respect of or credit to retained The liabilities for earned
defined benefit plans is earnings through OCI in leaves and other long
calculated separately for the period in which they term incentives are not
each plan by estimating occur. Remeasurements expected to be settled
the amount of future are not reclassified to wholly within 12 months
benefit that employees the statement of profit after the end of the

268
 Financial Statements | Standalone

period in which the capacity of a physically As a Lessee:

employees render the distinct asset. The Company recognizes
related service. They a right-of-use asset and a
are therefore measured • If the supplier has a lease liability at the lease
as the present value substantive substitution commencement date.
of expected future right, then the asset is
payments to be made not identified. Right-of-use asset (ROU):
in respect of services
provided by employees • Company has the right The right-of-use asset is
upto the end of the to obtain substantially all initially measured at cost.
reporting period using of the economic benefits Cost comprises of the initial
the projected unit from use of the asset amount of the lease liability
credit method based throughout the period of adjusted for any lease
on actuarial valuation or use. payments made at or before
based on management the commencement date, any
estimates • Company has the right initial direct costs incurred by
to direct the use of the the lessee, an estimate of costs
Actuarial gains and asset. to dismantle and remove the
losses in respect of such underlying asset or to restore
benefits are charged • In cases where the the underlying asset or the site
to the Statement Profit usage of the asset is on which it is located less any
or Loss account in the predetermined the right lease incentives received.
period in which they to direct the use of the
arise. asset is determined when After the commencement date,
the company has the a lessee shall measure the
m) Leases right to use the asset or right-of-use asset applying cost
the company designed model, which is Cost less any
At the inception it is assessed, the asset in a way that accumulated depreciation and
whether a contract is a lease or predetermines how and any accumulated impairment
contains a lease. A contract is for what purpose it will losses and also adjusted for
a lease or contains a lease if it be used. certain re-measurements of
conveys the right to control the the lease liability.
use of an identified asset, for a At the commencement or
period of time, in exchange for modification of a contract, that Right-of-use asset is
consideration. contains a lease component, depreciated using straight-
company allocates the line method from the
To assess whether a contract consideration in the contract, commencement date to the
conveys the right to control to each lease component, end of the lease term. If the
the use of an identified asset, on the basis of its relative lease transfers the ownership
company assesses whether the standalone prices. For leases of the underlying asset to
contract involves the use of an of property, it is elected the company at the end of
identified asset. Use may be not to separate non-lease the lease term or the cost of
specified explicitly or implicitly. components and account the right-of-use asset reflects
for the lease and non-lease company will exercise the
• Use should be physically components as a single lease purchase option, ROU will be
distinct or represent component. depreciated over the useful life
substantially all of the of the underlying asset, which

269
 is determined based on the Lease liability is re-measured At the inception of the lease,
same basis as property, plant when there is a change in the it is determined whether it is a
and equipment lease term, a change in its finance lease or an operating
assessment of whether it will lease. If the lease transfers
Lease liability: exercise a purchase, extension substantially all of the risks
Lease liability is initially or termination option or a and rewards incidental to
measured at the present value revised in-substance fixed ownership of the underlying
of lease payments that are not lease payment, a change in asset, then it is a financial
paid at the commencement the amounts expected to be lease, otherwise it is an
date. Discounting is done using payable under a residual value operating lease.
the implicit interest rate in guarantee and a change in
If the lease arrangement
the lease, if that rate cannot future lease payments arising
contains lease and non-
be readily determined, then from change in an index or
lease components, then the
using company’s incremental rate.
consideration in the contract is
borrowing rate. Incremental
allocated using the principles
borrowing rate is determined When the lease liability is
of IND AS 115. The Company
based on entity’s borrowing re-measured corresponding
tests for the impairment losses
rate adjusted for terms of the adjustment is made to the
at the year end. Payment
lease and type of the asset carrying amount of the right-
received under operating lease
leased. of-use asset. If the carrying
is recognised as income on
amount of the right-of-use
straight line basis, over the
Lease payments included asset has been reduced to zero
lease term.
in the measurement of the it will be recorded in statement
lease liability comprises of of profit and loss. n) Income Tax
fixed payments (including in Income tax expense/ income
substance fixed payments), Right-of-use asset and lease comprises current tax expense
variable lease payments liabilities are presented /income and deferred
that depends on an index separately in the balance sheet tax/ expense income. It is
or a rate, initially measured recognised in the statement of
using the index or rate at the Company has elected not profit and loss except to the
commencement date, amount to recognise right-of-use extent that it relates to items
expected to be payable under assets and lease liabilities for recognised directly in equity
a residual value guarantee, short term leases. The lease or in Other comprehensive
the exercise price under a payments associated with income, in which case, the tax
purchase option that the these leases are recognised as is also recognized directly in
company is reasonably certain an expense on a straight-line equity or other comprehensive
to exercise, lease payments basis over the lease term. income, respectively.
in an optional renewal period
if the company is reasonably Lessor Current Tax
certain to exercise an extension At the commencement or
option, and penalties for early modification of a contract, that Current tax comprises the
termination of a lease unless contains a lease component, expected tax payable or
the company is reasonably Company allocates the recoverable on the taxable
certain not to terminate early consideration in the contract, profit or loss for the year
to each lease component, and any adjustment to the
Lease liability is measured on the basis of its relative tax payable or recoverable in
at amortised cost using the standalone prices. respect of previous years. It
effective interest method.

270
 Financial Statements | Standalone

is measured using tax rates probable that sufficient taxation authority on the
enacted or substantively taxable profit will be available same taxable entity.
enacted by the end of the to allow the benefit of part or
reporting period. Management all of that deferred tax asset Deferred tax asset /
periodically evaluates positions to be utilised such reductions liabilities in respect of
taken in tax returns with are reversed when it becomes temporary differences
respect to situations in which probable that sufficient which originate and
applicable tax regulation is taxable profits will be available. reverse during the tax
subject to interpretations and holiday period are not
Unrecognized deferred tax
establishes provisions where recognised. Deferred
assets are reassessed at each
appropriate. tax assets / liabilities in
reporting date and recognised
respect of temporary
to the extent that it has
• Current tax assets and differences that originate
become probable that future
liabilities are offset only during the tax holiday
taxable profits will be available
if, the Company has a period but reverse after
against which they can be
legally enforceable right the tax holiday period are
recovered.
to set off the recognised recognised
amounts; and
Deferred tax is measured at
Minimum Alternate Tax
the tax rates that are expected
• Intends either to settle on (MAT) credit is recognized
to be applied to temporary
a net basis, or to realise as an asset only when
differences when they reverse,
the asset and settle the and to the extent there
using tax rates enacted or
liability simultaneously. is a convincing evidence
substantively enacted by the
that the Company will
end of the reporting period.
Deferred Tax pay normal tax during
The measurement of deferred specified period.
Deferred Income tax is tax assets and liabilities reflects
recognised in respect of the tax consequences that o) Foreign Currency Transactions
temporary difference between would follow from the manner i) Functional and
the carrying amount of assets in which the Company expects, Presentation currency
and liabilities for financial at the reporting date, to
reporting purpose and the recover or settle the carrying The Company’s
amount considered for tax amount of its assets and standalone financial
purpose. liabilities. statements are prepared
in Indian Rupees (INR
Deferred tax assets are Deferred tax assets and “`”) which is also the
recognised for unused tax liabilities are offset only if: Company’s functional
losses, unused tax credits
currency.
i. the entity has a legally
and deductible temporary
enforceable right to set
differences to the extent
ii) Transactions and balances
off current tax assets
that it is probable that future
against current tax
taxable profits will be available Foreign currency
liabilities; and
against which they can be transactions are recorded
utilized. Deferred tax assets on initial recognition in
ii. the deferred tax assets
are reviewed at each reporting the functional currency
and the deferred tax
date and are reduced to the using the exchange
liabilities relate to income
extent that it is no longer rate at the date of the
taxes levied by the same

271
 transaction. as income on a systematic basis attributable to the equity
over the periods necessary shareholders and the weighted
Monetary assets and to match them with the costs average number of equity
liabilities denominated that they are intended to shares outstanding during the
in foreign currencies compensate. period is adjusted to take into
are translated into the account:
functional currency at Government grants relating to
the exchange rate at the purchase of property, plant and • The after income tax
reporting date. Non- equipment are included in non- effect of interest and
monetary items that current liabilities as deferred other financing costs
are measured based on income and are credited to the associated with dilutive
historical cost in a foreign the statement of profit and loss potential equity shares,
currency are translated on a straight line basis over the and
using the exchange expected lives of the related
rate at the date of the assets. • Weighted average
initial transaction. Non- number of additional
monetary items that are q) Dividend equity shares that would
measured at fair value The Company recognises have been outstanding
in a foreign currency a liability for any dividend assuming the conversion
are translated using the declared but not distributed of all dilutive potential
exchange rate at the at the end of the reporting equity shares.
date the fair value is period, when the distribution is
determined. authorised and the distribution s) Segment Reporting
is no longer at the discretion of As per Ind AS-108 ‘Operating
Exchange differences arising the Company on or before the Segments’, if a financial report
on the settlement or translation end of the reporting period. contains both the consolidated
of monetary items are As per Corporate laws in India, financial statements of a
recognized in the statement a distribution in the nature of parent that is within the
of profit and loss in the year final dividend is authorized scope of Ind AS-108 as well
in which they arise except for when it is approved by the as the parent’s separate
the qualifying cash flow hedge, shareholders. A corresponding financial statements, segment
which are recognised in OCI to amount is recognized directly information is required only
the extent that the hedges are in equity. in the consolidated financial
effective. statements. Accordingly,
r) Earnings Per Share information required to be
p) Government grants Basic earnings per share is presented under Ind AS-108
Government grants, including calculated by dividing the Operating Segments has been
non-monetary grants at fair profit or loss for the period given in the consolidated
value are recognised when attributable to the equity financial statements.
there is reasonable assurance shareholders by the weighted
that the grants will be average number of equity t) Business Combination
received and the Company will shares outstanding during the Business combinations
comply with all the attached period. are accounted for using
conditions. the acquisition accounting
For the purpose of calculating method as at the date of the
When the grant relates to an diluted earnings per share, the acquisition, which is the date
expense item, it is recognised profit or loss for the period at which control is transferred

272
 Financial Statements | Standalone

to the Company. The u) Recent accounting such as leases and

consideration transferred in the pronouncements which are decommissioning obligations.
acquisition and the identifiable not yet effective The amendments narrowed
assets acquired and liabilities The Ministry of Corporate the scope of the recognition
assumed are recognised at Affairs (‘MCA’) notifies new exemption in paragraphs
fair values on their acquisition standards or amendments to 15 and 24 of Ind AS 12
date. Goodwill is initially the existing standards under (recognition exemption) so
measured at cost, being the Companies (Indian Accounting that it no longer applies to
excess of the aggregate of Standards) Amendment Rules transactions that, on initial
the consideration transferred as issued from time to time. On recognition, give rise to
and the amount recognised March 31, 2023 MCA amended equal taxable and deductible
for non-controlling interests, the Companies (Indian temporary differences. The
and any previous interest Accounting Standards) Rules, company does not expect
held, over the net identifiable 2015 by issuing the Companies this amendment to have
assets acquired and liabilities (Indian Accounting Standards) any significant impact in
assumed. The Company Amendment Rules, 2023, its standalone financial
recognises any non-controlling applicable from April 1, 2023, statements.
interest in the acquired as below :
entity on an acquisition-by Ind AS 8, Accounting Policies,
acquisition basis either at fair Ind AS 1 – Presentation of Changes in Accounting
value or at the noncontrolling Financial Statements The estimates and errors The
interest’s proportionate amendment require companies amendments will help entities
share of the acquired entity’s to disclose their material to distinguish between
net identifiable assets. accounting policies rather than accounting policies and
Consideration transferred their significant accounting accounting estimates. The
does not include amounts policies. Accounting policy definition of a change in
related to settlement of information, together with accounting estimates has been
preexisting relationships. Such other information, is material replaced with a definition of
amounts are recognised in the when it can reasonably be accounting estimates. Under
Statement of Profit and Loss. expected to influence decisions the new definition, accounting
Transaction costs are expensed of primary users of general- estimates are “monetary
as incurred, other than those purpose financial statements. amounts in financial statements
incurred in relation to the issue The company does not to be measured in a way
of debt or equity securities. expect this amendment to that involves measurement
Any contingent consideration have any significant impact uncertainty. The Company does
payable is measured at fair in its standalone financial not expect this amendment
value at the acquisition date. statements. to have any significant impact
Subsequent changes in the in its standalone financial
fair value of contingent Ind AS 12, Income Taxes statements.
consideration are recognised The amendment clarify
in the Statement of Profit and how companies account for
Loss. deferred tax on transactions

273
274
Note 3 : Property, Plant and Equipment
` Crore
Particulars Owned Assets Assets Total
given on
lease
Freehold Leasehold Buildings Leasehold Plant and Furniture Vehicles Office Computers Building
Land Land Improvements Equipment and Equipment
Fixtures
Year ended March 31, 2023
Gross Carrying Amount
Opening Gross Carrying Amount 0.51 14.42 187.92 35.84 523.31 15.12 11.10 20.50 34.18 90.26 933.16
Additions - - 19.31 10.00 170.41 0.39 2.21 3.81 4.39 - 210.52
(Disposals) - - (0.01) (0.15) (7.05) (0.06) (2.78) (0.16) (5.35) - (15.56)
Closing Gross Carrying Amount 0.51 14.42 207.22 45.69 686.67 15.45 10.53 24.15 33.22 90.26 1,128.12

Accumulated Depreciation
Opening Accumulated Depreciation - 3.95 29.15 24.81 254.19 8.55 5.91 12.35 25.69 10.35 374.95
Depreciation charge during the year * - 0.16 5.47 4.81 67.87 1.45 1.79 2.66 4.66 1.50 90.37
(Disposals) - - - (0.14) (5.18) (0.06) (1.91) (0.16) (5.27) - (12.72)
Closing Accumulated Depreciation - 4.11 34.62 29.48 316.88 9.94 5.79 14.85 25.08 11.85 452.60

Net Carrying Amount 0.51 10.31 172.60 16.21 369.79 5.51 4.74 9.30 8.14 78.41 675.52

Year ended March 31, 2022

Gross Carrying Amount
Opening Gross Carrying Amount 0.51 14.42 187.70 34.66 462.89 14.55 11.52 19.09 32.53 90.26 868.13
Additions - - 1.81 1.57 73.98 0.65 3.03 1.60 6.07 - 88.71
(Disposals) - - (1.49) (0.49) (13.52) (0.09) (3.45) (0.22) (4.42) - (23.68)
Other adjustments - - (0.10) 0.10 (0.04) 0.01 - 0.03 - - -
Closing Gross Carrying Amount 0.51 14.42 187.92 35.84 523.31 15.12 11.10 20.50 34.18 90.26 933.16
Accumulated Depreciation
Opening Accumulated Depreciation - 3.79 25.55 20.97 216.34 7.18 6.66 10.10 25.10 8.85 324.54
Depreciation charge during the year - 0.16 5.15 4.31 46.22 1.43 1.99 2.40 4.98 1.50 68.14
(Disposals) - - (0.42) (0.49) (8.42) (0.08) (2.74) (0.25) (4.39) - (16.79)
Other adjustments - - (1.13) 0.02 0.05 0.02 - 0.10 - - (0.94)
Closing Accumulated Depreciation - 3.95 29.15 24.81 254.19 8.55 5.91 12.35 25.69 10.35 374.95

Net Carrying Amount 0.51 10.47 158.77 11.03 269.12 6.57 5.19 8.15 8.49 79.91 558.21

*Includes accelerated depreciation of ` 18.73 crore (31-Mar-22 ` Nil ) on review of useful life of Property, Plant and Equipment.
 Financial Statements | Standalone

Note 4 : Capital Work-In-Progress

Capital work-in-Progress ageing schedule

As At March 31, 2023

` Crore
Less than More than
Capital work in progress ageing 1-2 years 2-3 years Total
1 year 3 years
Projects in progress 5.28 0.43 - - 5.71
Projects temporarily suspended 0.07 - - - 0.07
CWIP -assets not categorised as projects - - - - 15.80
TOTAL 5.35 0.43 - - 21.58

As At March 31, 2022

` Crore
Less than More than
Capital work in progress ageing 1-2 years 2-3 years Total
1 year 3 years
Projects in progress 48.79 - - - 48.79
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects 27.83
TOTAL 48.79 - - - 76.62

NOTE :
a) There are no projects whose completion is overdue or exceeded the cost as compared to its original plan.

275
 Note 5 : Leases

Leases in which the company is a Lessee

Office Building
The Company has leasing arrangements for its head office and other office buildings. Non-cancellable period for those
lease arrangements vary. The Company pays lease charges as fixed amount as per the respective lease agreements.
Right-of-use asset is measured, on a lease by lease basis, at carrying amount. Discounting to arrive the value of asset is
done based on the incremental borrowing rate at the date of initial application.

Factories, Godowns and office buildings

The Company has leasing arrangements for its various factories, godowns and office buildings (other than mentioned
above). Non-cancellable period for those leasing arrangements are less than 12 months and the Company elected to
apply the recognition exemption for short term leases to these leases. The lease amount is charged as rent. The Total
lease payments accounted for the year ended March 31, 2023 is ` 40.12 crore (previous year ` 45.89 crore).

Leases in which the company is a Lessor:

The Company has entered into an agreement to give one of its office building on operating lease effective May 2020.
The Company has also taken office building on operating lease for similar premises in the same building.

A] As a lessee:
(a) Right of use assets - Buildings
` Crore
As at As at
March 31, 2023 March 31, 2022
Gross carrying amount
Opening Gross carrying amount 55.32 55.32
Additions 23.92 -
(Disposals) 13.01 -
Closing Gross carrying amount 92.25 55.32
Accumulated Depreciation
Opening Accumulated Depreciation 25.48 13.47
Depreciation charge during the year 13.66 12.01
(Disposals) 13.01 -
Closing Accumulated Depreciation 52.15 25.48
Net Carrying Amount 40.10 29.84

(b) Lease liabilities

` Crore
As at As at
March 31, 2023 March 31, 2022
Less than one year 17.51 12.61
One to three years 32.57 22.64
Three years to five years 5.28 0.00
More than five years 0.23 0.23
Total undiscounted lease liabilities as at 31 March 55.59 35.48

` Crore
As at As at
Lease liabilities (discounted)
March 31, 2023 March 31, 2022
Non-current 28.80 20.42
Current 13.28 11.03
TOTAL 42.08 31.45

276
 Financial Statements | Standalone

(c) Amounts recognized in statement of profit and loss

` Crore
Year ended Year ended
Short-term leases
March 31, 2023 March 31, 2022
Expenses relating to short-term leases 40.12 45.89
TOTAL 40.12 45.89

(d) Cash outflow for leases ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Total cash outflow for leases 14.29 14.35
TOTAL 14.29 14.35

B] As a lessor:
(a) Amounts recognized in statement of profit and loss ` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Operating lease income 11.30 10.97

(b) Undiscounted lease payments to be received after reporting date ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Less than one year 10.86 10.86
One to three years 16.65 22.63
Three years to five years 0.00 0.00
Total undiscounted lease payments 27.51 33.49

277
 Note 6 : Intangible Assets
` Crore
Other Intangible assets

Goodwill Total Other

Trademarks Computer Technical Product
Intangible
and Brands * Software Knowhow registrations
assets
Year ended March 31, 2023
Gross Carrying Amount
Opening Gross Carrying Amount 2.48 791.56 62.69 0.10 0.33 854.68
Additions - - 6.87 - - 6.87
Disposals - - (15.50) - - (15.50)
Closing Gross Carrying Amount 2.48 791.56 54.06 0.10 0.33 846.05

Opening Accumulated Amortisation - 0.31 52.88 0.10 0.12 53.41

Amortisation recognised for the year - - 3.89 - 0.07 3.96
Disposals - - (15.81) - - (15.81)
Closing Accumulated Amortisation - 0.31 40.96 0.10 0.19 41.56

Closing Net Carrying Amount 2.48 791.25 13.10 - 0.14 804.49

Year ended March 31, 2022

Gross Carrying Amount
Opening Gross Carrying Amount 2.48 791.56 57.62 0.10 0.33 849.61
Additions - - 5.08 - - 5.08
Disposals - - (0.01) - - (0.01)
Closing Gross Carrying Amount 2.48 791.56 62.69 0.10 0.33 854.68

Accumulated Amortisation
Opening Accumulated Amortisation - 0.30 46.95 0.10 0.05 47.40
Amortisation recognised for the year - 0.01 5.38 - 0.07 5.46
Disposals - - 0.55 - - 0.55
Closing Accumulated Amortisation - 0.31 52.88 0.10 0.12 53.41

Closing Net Carrying Amount 2.48 791.25 9.81 - 0.21 801.27

Note :
* Includes brands amounting to ` 791.25 crore (31-Mar-22 ` 791.25 crore) that have an indefinite life and are tested for impairment
at every year end. Based on analysis of all relevant factors (brand establishment, stability, types of obsolescence etc.), there is no
foreseeable limit to the period over which the assets are expected to generate net cash inflows for the Company.

The recoverable amount of the brands are based on its value in use. The value in use is estimated using discounted cash flows over a
period of 5 years. The measurement using discounted cash flow is level 3 fair value based on inputs to the valuation technique used.
Cash flows beyond 5 years is estimated by capitalising the future maintainable cash flows by an appropriate capitalisation rate and then
discounted using pre tax discount rate.

Operating margins and growth rates for the five years cash flow projections have been estimated based on past experience and
after considering the financial budgets/ forecasts approved by management. Other key assumptions used in the estimation of the
recoverable amount are set out below. The values assigned to the key assumptions represent management’s assessment of future

278
 Financial Statements | Standalone

trends in the relevant industries and have been based on historical data from both external and internal sources.

Following key assumptions were considered while performing Impairment testing:

As at As at
January 31, 2023 January 31, 2022

Annual growth rate 5-8% 5-6%

Terminal Growth Rate 5% 5%

Royalty relief rate 12% 12%

Pre- tax discount rate 10.90% 10.70%

The pre-tax discount rate is based on risk free rate, beta variant adjusted for market premium and company specific risk factors.

According to Ind AS 36 “Impairment of Assets”, the annual impairment test for intangible assets with indefinite useful life may be
performed at any time during an annual period, provided the test is performed at the same time every year. The Company has decided
to perform impairment test for intangible assets with indefinite useful life at January 31 and same is being followed for future years.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the
carrying amount of the Brands to exceed their recoverable amount.

No impairment has been charged to the Statement of Profit and Loss account during the financial year 31 March 2023 (31 March 2022:
Nil)

Note 7 : Intangible Assets Under Development

Intangible assets under development ageing schedule

As At March 31, 2023

` Crore
Less than More than
Intangible assets under development ageing 1-2 years 2-3 years Total
1 year 3 years
Projects in progress - - - - -
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects - - - - 3.81
TOTAL - - - - 3.81

As At March 31, 2022

` Crore
Less than More than
Intangible assets under development ageing 1-2 years 2-3 years Total
1 year 3 years
Projects in progress - - - - -
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects - - - - 1.69
TOTAL - - - - 1.69

NOTE :
a) There are no projects whose completion is overdue or exceeded the cost as compared to its original plan.
b) There are no suspended projects.

279
 Note 8 : Investments In Subsidiaries
` Crore
Numbers Amounts
Face
Value As At As At As At As At
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Unquoted, fully paid up:
Carried at cost
(a) Investments in Equity Instruments
(i) Subsidiary Companies
Godrej Netherlands B.V. EUR 100 200 200 140.93 140.93
Godrej South Africa Proprietary Limited ZAR 1 18,050,000 18,050,000 12.67 12.67
Godrej Consumer Products Holding (Mauritius) Ltd. USD 1 185,944,409 185,944,409 982.14 982.14
Godrej Household Products Lanka (Pvt) Ltd. LKR 10 70,258,458 70,258,458 47.65 47.65
Less : Provision for Diminution in the Value of
(8.82) -
Investments
Sub total 38.83 47.65
Godrej Consumer Products (Bangladesh) Ltd. BDT 100 4,999 4,999 0.04 0.04
Godrej Mauritius Africa Holdings Ltd. USD 1 155,190,990 155,190,990 1,357.80 1,357.80
Godrej East Africa Holdings Ltd. USD 1 109,450,001 109,450,001 808.25 808.25
Godrej Tanzania Holdings Ltd. USD 1 17,850,001 17,850,001 121.29 121.29
Godrej SON Holdings INC. USD 1 135,600,000 135,600,000 928.63 928.63
Godrej Consumer Care Ltd. ` 10 10,000,000 10,000,000 10.00 10.00
Godrej Consumer Products Limited
- - - - -
Employees' Stock Option Trust*
Sub total 4,400.58 4,409.40
(b) Investments in Non-convertible
Debentures
(i) Subsidiary Companies
Godrej Mauritius Africa Holdings Ltd. (Refer

USD 1 698.55 -
note below)
TOTAL 5,099.13 4,409.40

Aggregate Amount of Unquoted Investments 5,099.13 4,409.40

Aggregate Amount of Quoted Investments - -
Aggregate Market Value of Quoted
- -
Investments
Aggregate Provision for Impairment in the
(8.82) -
Value of Investments
Refer note 47 for percentage holding of the Company in subsidiaries
* Amounts less than 0.01 crores

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:

Redeemable Non-convertible debentures classified as at amortised cost have interest rates of 4.80% (31 March 2022 : Nil) and mature
in three years (Refer Note 8(b)).
` Crore
As at As at
March 31, 2023 March 31, 2022
Godrej Netherlands B.V. 4.52 4.52
Godrej Consumer Products Holding (Mauritius) Ltd. 11.95 11.95
Godrej Mauritius Africa Holdings Ltd. 29.02 29.02
Godrej East Africa Holdings Ltd. 19.62 19.62
Godrej Tanzania Holdings Ltd. 3.07 3.07
TOTAL 68.18 68.18

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Note 9 : Other Investments (Non-Current)

` Crore
As at As at
March 31, 2023 March 31, 2022
At amortised cost
Unquoted:
Investments in Deposits with Non-Banking Financial Companies - 25.20
Quoted :
Investments in Target Mutual fund 199.08 -
At Fair Value through Profit or Loss
Investment in Equity Instruments*
Godrej One Premises Management Pvt Ltd.* (1400 equity shares of `10 each) - -
TOTAL 199.08 25.20

Aggregate Amount of Unquoted Investments - 25.20

Aggregate Amount of Quoted Investments 199.08 -
Aggregate Market Value of Quoted Investments 199.08 -
Aggregate Provision for Impairment in the Value of Investments - -
* Amounts less than 0.01 crores

Note 10 : Non-Current Loans

` Crore
As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.03 0.03
TOTAL 0.03 0.03

Note 11 : Other Non-Current Financial Assets

` Crore
As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Financial Guarantee Fee Receivables 1.15 4.78
Security Deposits 16.38 18.64
TOTAL 17.53 23.42

Note 12 : Tax Reconciliations

Tax expense recognised in the Statement of Profit and Loss
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Current Tax
Current tax on profits for the year 328.57 306.44
Deferred tax (Net) Others 0.61 11.45
MAT Credit Recognised (adjustment on account of previous period) (6.00) (37.23)
MAT credit utilised 32.72 2.64
Total income tax expense 355.90 283.30
Deferred tax is in respect of origination and reversal of temporary differences.

281
 Current Tax and Deferred Tax related to items recognised in Other Comprehensive Income during in the year :
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
On remeasurements of defined benefit plans
Deferred tax (0.49) (0.44)
On Cash Flow Hedge
Deferred tax (0.07) -
Total (0.56) (0.44)

Reconciliation of tax expense and the accounting profit

The reconciliation between estimated income tax expense at statutory income tax rate to income tax expense reported in Statement
of Profit & Loss is given below:

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Profit before income taxes 1,869.60 1,762.45

Indian statutory income tax rate 34.94% 34.94%

Expected income tax expense 653.32 615.87

Tax effect of adjustments to reconcile expected income tax expense to reported income tax
expense:

Deduction under Sec 80IC and 80IE (300.53) (290.67)

Effect of other tax offsets 1.39 4.16

Tax effects of amounts which are not deductible for taxable income 7.72 7.71

Tax effect on divestment of investment in associate - (16.54)

Adjustments for current tax of prior periods (Excess MAT utilised) (Refer note (d)) (6.00) (37.23)

Total income tax expense 355.90 283.30

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
March 31, 2023 March 31, 2022
Property, Plant and Equipment (19.66) (22.67)
Intangible assets (196.19) (193.27)
Total deferred tax liabilities (215.85) (215.94)

Deferred Tax Assets:

` Crore
As at As at
March 31, 2023 March 31, 2022
Defined benefit obligations 16.45 17.53
Provisions 37.89 38.15
Others 0.80 0.71
MAT credit 482.74 509.46
Total deferred tax assets 537.88 565.85

Net Deferred tax (Liabilities) / Assets 322.03 349.91

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 Financial Statements | Standalone

Movement in Deferred tax Liabilities / Asset ` Crore

Property, Intangible Defined Provisions Other Mat Credit Deferred Tax
plant and assets benefit Deferred (Refer Liabilities /
equipment obligations Tax Asset note) Asset (Net)
As at 31st March 2021 (22.41) (189.38) 20.72 41.68 1.73 474.87 327.21
(Charged)/Credited :
- to profit or loss (0.26) (3.89) (2.75) (3.53) (1.02) 34.59 23.14
- to other comprehensive income - - 0.44 - - - 0.44
At 1st April 2022 (22.67) (193.27) 17.53 38.15 0.71 509.46 349.91
(Charged)/Credited :
- to profit or loss 3.01 (2.92) (0.59) (0.26) 0.16 (26.72) (27.33)
- to other comprehensive income - - 0.49 - 0.07 - 0.56
As at 31st March 2023 (19.66) (196.19) 16.45 37.89 0.80 482.74 322.03

Liabilities for Current Tax (Net) ` Crore

As at As at
March 31, 2023 March 31, 2022
Liabilities for Current Tax (Net) 0.96 0.96
[Net of advance tax of ` 128.87 crore (31-Mar-22 ` 128.87 crore)]
TOTAL 0.96 0.96

(a) The Company offsets deferred 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.

(b) Significant management judgment is required in determining provision for income tax, deferred income tax
assets (including MAT credit) and liabilities and recoverability of deferred income tax assets. The recoverability of
deferred income tax assets is based on estimates of taxable income and the period over which deferred income
tax assets will be recovered.

(c) MAT paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay
normal income tax against which the MAT paid will be adjusted.

During the year the Company has utilised MAT credit of ` -26.72 crore (net) (31-Mar-22 : ` 34.59 crore).
Company has re-assessed its utilization of MAT credit, considering business projections, benefits available from
tax holiday, remaining period for such benefits etc based on which there is reasonable certainty of utilizing the
balance credit of ` 482.74 crore (31-Mar-22 : ` 509.46 crore) in future years against the normal tax expected to
be paid in those years.

(d) During the year ended March 31, 2023, the Company has reassessed tax benefits under section 80IE of the
Income tax Act for financial year 2021-22 based on which incremental Minimum alternate tax credit of ` 6 crore
(31-Mar-22 : ` 37.23 crore) has been recognised in the Standalone Financial Statements.

(e) New provision inserted in the Income tax Act (Sept 2019) with effect from fiscal year 2019-20, allows any
domestic company to pay income tax at the rate of 25.17% subject to condition they will not avail any incentive
or exemptions. The lower rate is an option and companies can continue to account based on the old rates. The
Company has plants located in North-east region enjoying income tax exemption, and the effective rate based
on the tax exemption plants is lower than 25.17%, so company decided to not opt for lower rate in FY 2022-23.

(f) Based on internal projections the company plans to opt for the lower tax rate in FY 2024-25 and onwards.
Accordingly company has reversed deferred tax assets/liabilities recognised in earlier years at the tax rates
enacted during the period, to the extent they are likely to reverse after 31st March 2024. The impact of such
reversal during the year was ` (1.28) crore (31-Mar-22 : ` 1.11 crore).

283
 Note 13 : Other Non-Current Assets
` Crore
As at As at
March 31, 2023 March 31, 2022
Capital Advances (Refer Note below)
Considered Good 15.15 37.11
Considered Doubtful 0.86 1.00
Less: Provision for Doubtful Advances (0.86) (1.00)

Advances other than capital advances

Balances with Government Authorities (deposits paid under protest) 30.83 39.86
Other non-current assets (includes prepaid expenses)
Considered Good 0.48 0.89
TOTAL 46.46 77.86
Note:

Capital Advances include ` Nil crore (31-Mar-2022 ` 0.05 crore) paid to Related Parties. (Refer Note 47)

Note 14 : Non-Current Tax Assets (Net)

` Crore
As at As at
March 31, 2023 March 31, 2022
Advance Tax 47.91 45.96
[Net of Provision for taxation - ` 2,911.00 crore (31-Mar-22 ` 2,582.84 crore)]
TOTAL 47.91 45.96
(Refer Note 12 for tax reconciliations)

Note 15 : Inventories
` Crore
As at As at
March 31, 2023 March 31, 2022
(Valued at lower of cost and net realizable value)
Raw Materials (Including Packing Materials) 202.22 354.54
Goods-in Transit 41.63 22.01
243.85 376.55

Work-in-Progress 43.11 57.02

Finished Goods 260.76 305.01
Stock-in-Trade 31.31 38.62
Stores and Spares 12.57 13.64
TOTAL 591.60 790.84
NOTE :

During the year ended March 31, 2023 an amount of ` 15.75 crore (31-Mar-22 ` 10.99 crore) was charged to the statement of Profit
and Loss on account of write-down of inventories including damaged and slow moving inventory. The reversal on account of above
during the year is ` Nil (31-Mar-22 ` Nil)

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Note 16 : Investments (Current)

` Crore
As at As at
March 31, 2023 March 31, 2022
Quoted
At Fair Value through Profit or Loss
Investments in Mutual Funds 863.94 311.60

At amortised cost
Investments in Non-convertible Debentures with Non-Banking Financial Companies 728.37 127.19
Investments in Commercial Papers with Non-Banking Financial Companies 342.02 49.98

Unquoted
At amortised cost
Investments in Deposits with Non-Banking Financial Companies 175.26 277.63
2,109.59 766.40

Aggregate Amount of Unquoted Investments 175.26 277.63

Aggregate Amount of Quoted Investments 1,934.33 488.77
Aggregate Market Value of Quoted Investments 1,934.33 488.77

Note 17 : Trade Receivables

` Crore
As at As at
March 31, 2023 March 31, 2022
Secured
Trade receivables- considered good 1.65 0.48
1.65 0.48
Unsecured
Trade receivables- considered good 319.14 336.44
Trade receivables- credit impaired 19.45 12.45
Less: Allowance for Bad and Doubtful Debts (19.45) (12.45)
TOTAL 320.79 336.92
Refer note 54A & 54B for information on market risk and credit risk.
Refer note 47B for information about receivables from related parties.
Note :

There are no outstanding trade receivables which resulted into significant increase in credit risk apart from receivables which are
impaired and provided.

285
 Trade receivables ageing schedule

As At March 31, 2023

` Crore
Trade receivables outstanding from Due Upto 6 months More than
Not due 1-2 years 2-3 years Total
date 6 months to 1 year 3 years
Undisputed trade receivables- considered
197.83 93.27 7.58 13.00 4.37 4.74 320.79
good
Undisputed trade receivables- which have
- - - - - - -
significant increase in risk
Undisputed trade receivables- credit impaired - - 7.85 5.64 2.02 2.58 18.09
Disputed trade receivables- considered good - - - - - - -
Disputed trade receivables- which have
- - - - - - -
significant increase in risk
Disputed trade receivables- credit impaired - - - 0.75 0.44 0.17 1.36
Provision for bad and doubtful debts (19.45)
Total 197.83 93.27 15.43 19.39 6.83 7.49 320.79

As At March 31, 2022

` Crore
Trade receivables outstanding from Due Upto 6 months More than
Not due 1-2 years 2-3 years Total
date 6 months to 1 year 3 years
Undisputed trade receivables- considered
214.00 106.23 6.38 6.73 3.57 0.01 336.92
good
Undisputed trade receivables- which have
- - - - - - -
significant increase in risk
Undisputed trade receivables- credit impaired - - 5.34 1.91 1.17 2.15 10.57
Disputed trade receivables- considered good - - - - - - -
Disputed trade receivables- which have
- - - - - - -
significant increase in risk
Disputed trade receivables- credit impaired 0.01 0.01 0.08 0.18 0.17 1.43 1.88
Provision for bad and doubtful debts (12.45)
Total 214.01 106.24 11.80 8.82 4.91 3.59 336.92
NOTE :

There are no unbilled recievables as at 31st March, 2023 and 31st March, 2022.

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Note 18 : Cash and Cash Equivalents

` Crore
As at As at
March 31, 2023 March 31, 2022
Balances with Banks
- In Current Accounts 14.20 33.52
14.20 33.52
Cheques, Drafts on Hand 3.46 1.62
Cash on Hand 0.03 0.09
TOTAL 17.69 35.23

Note :

a) There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior
periods.

Note 19 : Other Bank Balances

` Crore
As at As at
March 31, 2023 March 31, 2022
Deposits with maturities more than 3 months but less than 12 months (Refer Note below) 19.10 294.56
In Unpaid Dividend Accounts 13.68 15.18
TOTAL 32.78 309.74
Note:

(a) The fixed deposits include deposits under lien against bank guarantees ` 4.36 crore (31-Mar-22 ` 4.23 crore).

Note 20 : Current Loans

` Crore
As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.05 0.05
TOTAL 0.05 0.05

Note 21 : Other Current Financial Assets

` Crore
As at As at
March 31, 2023 March 31, 2022
Financial guarantee fee receivable 4.04 4.97
Interest on Non-convertible Debentures (Related Parties) 18.07 -
Refunds/Incentives receivables from Govt. Authorities (Excise duty/GST)
Considered Good 21.17 29.84
Considered Doubtful 18.65 22.56
Less: Provision for Doubtful Advances (18.65) (22.56)
21.17 29.84

Derivative assets - forward exchange contracts 1.03 0.11

Others (includes receivables of insurance claims, exports incentives) 7.14 2.55
Security Deposits 1.24 0.68
TOTAL 52.69 38.15

287
 Note 22 : Other Current Assets
` Crore
As at As at
March 31, 2023 March 31, 2022
Balances with Government Authorities (GST) 124.47 145.02
Contract assets (Right to receive inventory) 7.65 9.82
Other Advances (includes prepaid expenses, vendor advances)
Considered Good 23.92 49.01
Considered Doubtful 0.62 0.32
Less: Provision for Doubtful Advances (0.62) (0.32)
TOTAL 156.04 203.85
Note :

Refer note 47B for information about advance paid to Related Parties.

Note 23 : Equity Share Capital

` Crore
As at As at
March 31, 2023 March 31, 2022
Authorised
1,030,000,000 Equity Shares (31-Mar-22: 1,030,000,000) of ` 1 each 103.00 103.00

10,000,000 Preference Shares (31-Mar-22: 10,000,000) of ` 1 each 1.00 1.00

Issued
1,022,726,442 Equity Shares (31-Mar-22: 1,022,612,203) of ` 1 each 102.27 102.26

Subscribed and Fully Paid up

1,022,695,318 Equity Shares (31-Mar-22: 1,022,581,079) of ` 1 each fully paid up 102.27 102.26

TOTAL 102.27 102.26

Notes:

a) During the year, the Company has issued 1,14,239 equity shares (31-Mar-22 : 94,806) under the Employee Stock Grant Scheme.

b) 31,124 Rights Issue equity shares (31-Mar-22 : 31,124 equity shares) are kept in abeyance due to various suits filed in courts /
forums by third parties. No claims in respect of these shares have been received by the company.

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:
As at March 31, 2023 As at March 31, 2022
No. of Shares ` Crore No. of Shares ` Crore
Shares outstanding at the beginning of the year 1,022,581,079 102.26 1,022,486,273 102.25
Add : Shares Issued on exercise of employee stock grant scheme 114,239 0.01 94,806 0.01
Shares outstanding at the end of the year 1,022,695,318 102.27 1,022,581,079 102.26

288
 Financial Statements | Standalone

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, 2023 the amount of per share dividend recognised as distribution to equity shareholders was
` Nil (31-Mar-22 ` Nil).
e) Details of shareholders holding more than 5% shares in the Company:
As at March 31, 2023 As at March 31, 2022
Name of the Shareholder
No. of Shares % held No. of Shares % held
Godrej & Boyce Manufacturing Co Ltd 75,011,445 7.33% 75,011,445 7.34%
Godrej Industries Limited 242,812,860 23.74% 242,812,860 23.75%
Godrej Seeds & Genetics Limited 280,500,000 27.43% 280,500,000 27.43%

f) Shares Reserved for issue under options

The Company has 9,90,235 (31-Mar-22 year 6,16,102) equity shares reserved for issue under Employee Stock Grant Scheme as at
March 31, 2023. (As detailed in Note 51 )

g) Information regarding aggregate number of equity shares issued during the five years immediately preceding the date of Balance
Sheet:

During the year 2018-19, pursuant to the approval of Shareholders, Company has allotted 340,722,032 number of fully paid Bonus
shares on Sep 17,2018 in the ratio of one equity share of `1 each fully paid up for every two existing equity shares of `1 each
fully paid up.

During the year 2017-18, pursuant to the approval of Shareholders, Company has allotted 340,600,816 number of fully paid Bonus
shares on June 27,2017 in the ratio of one equity share of `1 each fully paid up for every one existing equity shares of `1 each
fully paid up.

The Company has not issued shares for consideration other than cash and has not bought back any shares during the past five
years other than as reported above.

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. As on balance sheet date there are no net debt.

289
 k) Details of shares held by promoters

As At March 31, 2023

` Crore
No. of shares No. of shares
Change % Change
Class of held at the held at the
Promoter Name during the during the
Shares end of the beginning of
year year
year the Year
Godrej Seeds & Genetics Limited Equity 280,500,000 280,500,000 - -
shares of
Godrej Industries Limited 242,812,860 242,812,860 - -
INR 1 each
Godrej & Boyce Manufacturing Co. Ltd. fully 75,011,445 75,011,445 - -
paid
Rishad Kaikhushru Naoroji & Others (Partners Of Rkn
13,438,500 13,438,500 - -
Enterprises)

Pheroza Jamshyd Godrej 9,640,700 9,640,700 - -

Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika

2,901,200 2,901,200 - -
Holkar (Trustees Of Fvc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
2,901,200 2,901,200 - -
Holkar (Trustees Of Nvc Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad
2,843,100 2,843,100 - -
Family Trust)
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng
2,843,100 2,843,100 - -
Family Trust)
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg
2,843,100 2,843,100 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
2,752,299 2,752,299 - -
Of Hng Family Trust)
Sohrab Nadir Godrej 1,901,184 1,901,184 - -
Burjis Nadir Godrej 1,901,172 1,901,172 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej
1,312,441 1,312,441 - -
(Trustees Of Bng Successor Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1,312,429 1,312,429 - -
Of Sng Successor Trust)
Hormazd Nadir Godrej 461,314 461,314 - -
Pirojsha Adi Godrej 370,129 370,129 - -
Nisaba Godrej 370,087 370,087 - -
Azaar Arvind Dubash 370,000 370,000 - -
Adi Barjorji Godrej 1,500 1,500 - -
N avroze Jamshyd Godrej 77 77 - -
Rishad Kaikhushru Naoroji 72 72 - -
Freyan Crishna Bieri 70 70 - -
Tanya Arvind Dubash 66 66 - -
N yrika Holkar 64 64 - -
Nadir Barjorji Godrej 63 63 - -
Raika Jamshyd Godrej 50 50 - -
Jamshyd Godrej And Others (Trustees Of The Raika
24 24 - -
Godrej Family Trust)
Adi Godrej, Tanya Dubash, Nisaba Godrej And Pirojsha
1 1 - -
Godrej (Trustees Of Abg Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad
1 1 - -
Children Trust)

290
 Financial Statements | Standalone

` Crore
No. of shares No. of shares
Change % Change
Class of held at the held at the
Promoter Name during the during the
Shares end of the beginning of
year year
year the Year
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Equity
shares of 1 1 - -
Children Trust)
INR 1 each
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg fully
paid 1 1 - -
Children Trust)
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg
1 1 - -
Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej
1 1 - -
(Trustees Of Nbg Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej
1 1 - -
(Trustees Of Rng Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1 1 - -
Of Bng Family Trust)
Nadir Godrej, Hormazd Godrej And Burjis Godrej
1 1 - -
(Trustees Of Bng Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1 1 - -
Of Sng Family Trust)
Nadir Godrej, Hormazd Godrej And Sohrab Godrej
1 1 - -
(Trustees Of Sng Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Jng Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Pjg Family Trust )
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Rjg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Raika Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Njg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Navroze Lineage Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Sgc Family Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Vmc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Fvc Children Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Nvc Children Trust)

291
 As At March 31, 2022
` Crore
No. of shares No. of shares
Change % Change
Class of held at the held at the
Promoter Name during the during the
Shares end of the beginning of
year year
year the Year
Godrej Seeds & Genetics Limited Equity 280,500,000 280,500,000 - -
shares of
Godrej Industries Limited 242,812,860 242,812,860 - -
INR 1 each
Godrej & Boyce Manufacturing Co. Ltd. fully 75,011,445 75,011,445 - -
paid
Rishad Kaikhushru Naoroji & Others (Partners Of Rkn
13,438,500 13,438,500 - -
Enterprises)
Pheroza Jamshyd Godrej
9,640,700 9,640,700 - -

Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika

2,901,200 2,901,200 - -
Holkar (Trustees Of Fvc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
2,901,200 2,901,200 - -
Holkar (Trustees Of Nvc Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad
2,843,100 2,843,100 - -
Family Trust)
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng
2,843,100 2,843,100 - -
Family Trust)
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg
2,843,100 2,843,100 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
2,752,299 2,752,299 - -
Of Hng Family Trust)
Sohrab Nadir Godrej 1,901,184 1,901,184 - -
Burjis Nadir Godrej 1,901,172 1,901,172 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej
1,312,441 1,312,441 - -
(Trustees Of Bng Successor Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1,312,429 1,312,429 - -
Of Sng Successor Trust)
Hormazd Nadir Godrej 461,314 461,314 - -
Pirojsha Adi Godrej 370,129 370,129 - -
Nisaba Godrej 370,087 370,087 - -
Azaar Arvind Dubash 370,000 370,000 - -
Adi Barjorji Godrej 1,500 1,500 - -
N avroze Jamshyd Godrej 77 77 - -
Rishad Kaikhushru Naoroji 72 72 - -
Freyan Crishna Bieri 70 70 - -
Tanya Arvind Dubash 66 66 - -
N yrika Holkar 64 64 - -
Nadir Barjorji Godrej 63 63 - -
Raika Jamshyd Godrej 50 50 - -
Jamshyd Godrej And Others (Trustees Of The Raika
24 24 - -
Godrej Family Trust)
Adi Godrej, Tanya Dubash, Nisaba Godrej And Pirojsha
1 1 - -
Godrej (Trustees Of Abg Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad
1 1 - -
Children Trust)

292
 Financial Statements | Standalone

` Crore
No. of shares No. of shares
Change % Change
Class of held at the held at the
Promoter Name during the during the
Shares end of the beginning of
year year
year the Year
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Equity
shares of 1 1 - -
Children Trust)
INR 1 each
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg fully
paid 1 1 - -
Children Trust)
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg
1 1 - -
Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej
1 1 - -
(Trustees Of Nbg Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej
1 1 - -
(Trustees Of Rng Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1 1 - -
Of Bng Family Trust)
Nadir Godrej, Hormazd Godrej And Burjis Godrej
1 1 - -
(Trustees Of Bng Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees
1 1 - -
Of Sng Family Trust)
Nadir Godrej, Hormazd Godrej And Sohrab Godrej
1 1 - -
(Trustees Of Sng Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Jng Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Pjg Family Trust )
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Rjg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Raika Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Njg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej
1 1 - -
(Trustees Of Navroze Lineage Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Sgc Family Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Vmc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Fvc Children Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika
1 1 - -
Holkar (Trustees Of Nvc Children Trust)

293
 Note 24 : Other Equity
` Crore
As at As at
March 31, 2023 March 31, 2022
Securities Premium 1,434.70 1,424.93
General Reserve 154.05 154.05
Other Reserves
Capital Investment Subsidy Reserve 0.15 0.15
Capital Redemption Reserve 1.46 1.46
Employee Stock Options Outstanding 23.56 13.17
25.17 14.78

Retained Earnings 7,670.46 6,155.85

Other Comprehensive Income (Effective portion of cash flow hedges) (0.63) (0.75)
TOTAL 9,283.75 7,748.86

Other Reserves Movement

` Crore
As at As at
March 31, 2023 March 31, 2022
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

Employee Stock Options Outstanding

Gross Employee Compensation for Options granted 13.17 7.53
(-) Exercise of Share options (9.77) (6.32)
(+) Deferred Employee Compensation Expense (Refer Note 38) 20.16 11.96
Closing Balance 23.56 13.17
TOTAL 25.17 14.78

Nature and purpose of reserves

1) Securities premium

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, 2013

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.

294
 Financial Statements | Standalone

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.

4) Capital redemption reserve

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

5) 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 51 for details on ESGS Plans.

6) 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 25 : Non-Current Financial Liabilities

` Crore
As at As at
March 31, 2023 March 31, 2022
Lease liabilities (Refer Note 5) 28.80 20.42
TOTAL 28.80 20.42

Note 26 : Provisions (Non-Current)

` Crore
As at As at
March 31, 2023 March 31, 2022
Provision for Employee Benefits
Gratuity (Refer Note 50) 50.61 51.67
Compensated Absences 4.13 5.76
Other long-term incentive 4.19 -
TOTAL 58.93 57.43

Note 27 : Other Non-Current Liabilities

` Crore
As at As at
March 31, 2023 March 31, 2022
Unearned premium on guarantees given to subsidiaries 1.05 4.64
Others (includes deferred grants, sundry deposits) 2.36 2.29
TOTAL 3.41 6.93

295
 Note 28 : Borrowings
` Crore
As at As at
March 31, 2023 March 31, 2022
Unsecured, Working Capital Loan Repayable on Maturity
From Banks
Overdraft Facilities (Refer Note (a) below) 23.82 -
TOTAL 23.82 -

Notes:

a) Overdraft facilities ` 23.82 crore (31-Mar-2022 ` Nil crore) is an unsecured facility and is repayable on demand. Interest would be payable at
the rate of 9.55%.

Note 29 : Current - Lease Liabilities

` Crore
As at As at
March 31, 2023 March 31, 2022
Lease liabilities (refer note 5) 13.28 11.03
TOTAL 13.28 11.03

Note 30 : Trade Payables

` Crore
As at As at
March 31, 2023 March 31, 2022
i) MSME 46.40 23.24
ii) Other than MSME (Refer Note 47B) 664.69 602.06
TOTAL 711.09 625.30
(Refer Note 54C)
Disclosures pursuant to Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”) are as follows:
As at As at
March 31, 2023 March 31, 2022
I The principal amount remaining unpaid to any supplier at the end of the accounting
46.40 23.24
year included in trade payables
II Interest due thereon - -
Trade payable dues to Micro and small enterprises - -
(a) The amount of interest paid by the buyer under MSMED Act, 2006 along with the
amounts of the payment made to the supplier beyond the appointed day during - -
each accounting year
(b) The amount of interest due and payable for the period (where the principal has
- -
been unpaid but interest under the MSMED Act, 2006 not paid)
(c) The amount of interest accrued and remaining unpaid at the end of the accounting year - -
(d) The amount of further interest due and payable even in the succeeding year, until
such date when the interest dues as above are actually paid to the small enterprise, - -
for the purpose of disallowance as a deductible expenditure under section 23

296
 Financial Statements | Standalone

Trade payables ageing schedule

As At March 31, 2023

` Crore
Outstanding for following periods from due date of payment
Particulars Less than More than Total
Unbilled Not due 1-2 years 2-3 years
1year 3years
i) MSME - 45.81 0.56 - - 0.03 46.40
ii) Other than MSME 309.26 218.77 132.69 0.96 0.92 1.33 663.93
iii) Disputed dues -MSME - - - - - - -
iv) Disputed dues -Others - - - - - 0.76 0.76
Total 309.26 264.58 133.25 0.96 0.92 2.12 711.09

As At March 31, 2022

` Crore
Outstanding for following periods from due date of payment
Particulars Less than More than Total
Unbilled Not due 1-2 years 2-3 years
1year 3years
i) MSME - 23.07 0.17 - - - 23.24
ii) Other than MSME 250.03 228.16 119.31 1.23 1.27 1.30 601.30
iii) Disputed dues -MSME - - - - - - -
iv) Disputed dues -Others - - - - - 0.76 0.76
Total 250.03 251.23 119.48 1.23 1.27 2.06 625.30

Note 31 : Other Current Financial Liabilities

` Crore
As at As at
March 31, 2023 March 31, 2022
Security Deposit Received 4.36 4.36
Employee Benefits Payable 66.21 57.93
Derivative Liability - Cross currency interest rate swap used for hedging 11.95 -
Unpaid Dividends (Refer Note below) 13.68 15.18
Capital creditors and other payables 15.70 11.87
TOTAL 111.90 89.34
(Refer Note 54C)

Note:
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.

297
 Note 32 : Other Current Liabilities
` Crore
As at As at
March 31, 2023 March 31, 2022
Statutory Dues (TDS, Octroi etc) 11.72 8.13
Advance from customers 20.95 19.82
Contractual and constructive obligation 117.51 117.89
Unearned premium on guarantees given to subsidiaries 3.60 4.76
Others (includes PF, deferred revenue) 4.04 4.86
TOTAL 157.82 155.46

Note 33 : Provisions (Current)

` Crore
As at As at
March 31, 2023 March 31, 2022
Provision for Employee Benefits
Gratuity (Refer Note 50) 8.15 8.38
Compensated Absences 1.22 1.41
Other provisions
Provision for Sales Returns 26.14 36.07
Provision towards Litigations 29.84 19.22
TOTAL 65.35 65.08

Movements in each class of other provisions during the financial year are set out below:
` Crore
Provision towards
Sales Returns
Litigation
As at April 1, 2021 32.36 18.82
Provisions made during the year 3.71 0.40
Provisions reversed during the year - -
As at April 1, 2022 36.07 19.22
Provisions made during the year - 10.62
Provisions reversed during the year (9.93) -
As at March 31, 2023 26.14 29.84

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 numerous separate cases that arise in the ordinary course of business.
A provision is recognised for legal cases if the 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.

298
 Financial Statements | Standalone

Note 34 : Revenue From Operations

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Revenue from contracts with customers
Sale of Products 7,530.80 6,819.32
Other Operating Revenues
a) Royalty & Technical Fees 23.93 22.46
b) Miscellaneous Income ( includes Refunds/Incentives from Govt. Authorities) 112.44 109.78
TOTAL 7,667.17 6,951.56

Notes :
a) Revenue Information
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Revenue by product categories
Home care 3,540.88 3,383.99
Personal care 3,989.92 3,435.33
TOTAL 7,530.80 6,819.32

b) Reconciliation of the amount of revenue recognised in the statement of profit and loss with the contracted price
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Revenue as per contracted price 7,826.82 7,100.63
Sales returns 9.93 (3.71)
Rebates/Discounts (305.95) (277.60)
Revenue from contract with customers 7,530.80 6,819.32

c) Contract Balances
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Trade receivables (Note 17) 320.79 336.92
Contract assets (Note 22) 7.65 9.82
Contract liabilities (Note 32) 20.95 19.82
Note:
Contract assets represents right to receive the inventory (on estimated sales returns) and contract liabilities represents advances
received from customers for sale of goods at the reporting date.

d) Significant changes in contract assets and liabilities during the period

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Revenue recognised that was included in the contract liability balance at the beginning of the 19.82 23.10
period

299
 Note 35 : Other Income
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Interest Income on:
Fixed deposits with Non-Banking Financial Companies at amortised cost 16.97 26.48
Deposits with banks 6.88 8.92
On Derivative Instruments 10.32 -
Commercial Papers 10.30 0.81
Non-convertible Debentures (Related parties) 18.07 -
On Others 0.48 0.17
Net Gain on Sale of Investments ( Mutual Funds/ Non-convertible debentures) 47.78 10.90
Fair Value Gain/(Loss) on financial assets measured at fair value through profit or loss 5.83 0.62
Other Non-Operating Income
Net Gain on Foreign Currency Transactions and Translations 6.12 0.87
Guarantee Commission income 4.79 8.17
Rental Income 11.30 10.97
Miscellaneous Non-operating Income 0.64 1.27
TOTAL 139.48 69.18

Note 36 : Cost Of Materials Consumed

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Raw material and packing material
Opening Inventory 376.55 287.95
Add : Purchases (Net) 3,233.56 3,152.53
3,610.11 3,440.48
Less: Closing Inventory (243.85) (376.55)
Cost of Materials Consumed TOTAL 3,366.26 3,063.93

Note 37 : Changes in Inventories of Finished Goods, Stock-In-Trade and

Work-in-Progress
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Opening Inventory
Finished Goods 305.01 292.49
Stock-in-Trade 38.62 61.80
Work-in-Progress 57.02 49.34
400.65 403.63
Less: Closing Inventory
Finished Goods 260.76 305.01
Stock-in-Trade 31.31 38.62
Work-in-Progress 43.11 57.02
335.18 400.65
(Increase)/Decrease in Inventories TOTAL 65.47 2.98

300
 Financial Statements | Standalone

Note 38 : Employee Benefits Expense

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Salaries and Wages 321.46 302.59
Compensated Absences 1.37 1.05
Contribution to Provident and Other Funds (Refer Note 50) 20.18 21.75
Share based payments to Employees (Employee Stock Grant Scheme) (Refer Note 51B) 20.16 11.96
Staff Welfare Expenses 9.02 10.17
TOTAL 372.19 347.52
Note:

During the year ended March 31, 2023, Employee Benefits expense includes provision for long term incentive amounting to ` 4.19
Crore (Previous Year: ` Nil Crore) recorded on achievement of certain parameters as at March 31, 2023 and certain parameters
expected to be achieved during the financial year 2023-24, as per the long term incentive scheme in accordance with the accounting
standards. This long-term incentive is payable in financial year 2023-24 and 2024-25, subject to fulfilment of all the defined
parameters and therefore the provision is recorded at its present value.

Note 39 : Finance Costs

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Interest Expense
Interest on lease liabilities 2.76 2.37
Others (mainly includes interest on Short-term borrowings) 0.31 5.39
Other borrowing costs
Bill discounting Charges - 0.11
TOTAL 3.07 7.87

Note 40 : Depreciation and Amortisation Expenses

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 90.37 68.14
Depreciation on Right of use assets - buildings 13.66 12.01
Amortisation on intangible assets 3.96 5.46
TOTAL 107.99 85.61

301
 Note 41 : Other Expenses
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Consumption of Stores and Spare Parts 14.29 13.11
Power and Fuel 122.37 100.67
Rent (Net) (Refer Note 5) 40.12 45.89
Repairs and Maintenance
Plant and Equipment 6.61 6.80
Buildings 5.04 4.96
Others (Net) 32.92 31.48
44.57 43.24
Insurance 8.93 7.19
Rates and Taxes 12.75 10.41
Processing and Other Manufacturing Charges 175.47 188.56
Travelling and Conveyance 29.85 21.36
Auditors' Remuneration
As Statutory Auditor 1.99 1.86
For Other audit related services 0.12 0.36
Reimbursement of Expenses 0.02 0.03
2.13 2.25
Legal and Professional Charges 42.44 36.93
Donations 0.52 0.38
Sales Promotion 34.94 63.22
Advertising and Publicity 687.34 501.13
Selling and Distribution Expenses 122.29 78.73
Freight 251.26 276.55
Net Loss on Sale/ write off of Property, Plants and Equipment 0.03 3.36
Bad Debts Written Off 1.36 -
Provision for Doubtful Debts / Advances 7.15 -
CSR expenditure (Refer Note 52) 31.99 30.46
Miscellaneous Expenses (Net) (Refer Note (a) below) 68.90 59.61
TOTAL 1,698.70 1,483.05
Note :
Miscellaneous Expenses include the Company’s share of various expenses incurred by group companies for sharing of services and
use of common facilities.

302
 Financial Statements | Standalone

Note 42 : Exceptional Items

` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Impairment (reversal) / provision 8.82 (15.38)
Settlement of Litigation with tax authorities 18.77 -
Net gain on sale of investment in Associate - (42.83)
TOTAL 27.59 (58.21)

Note :
During the year ended March 31, 2023 exceptional items comprise an amount of ` 18.77 crore on account of litigation settlement
under VAT amnesty scheme and amount of ` 8.82 crore Impairment provision for diminution in the value of investments of Godrej
Household Products Lanka (Pvt) Ltd.

The Company divested its entire stake in Bhabani Blunt Hair Dressing Private Limited on March 16th,2022, and the right to use the
“BBLUNT” brand name to manufacture and sell BBLUNT branded products business during last year in line with the overall strategy
of sharpening the strategic focus on the core business portfolio. Total consideration received by GCPL on closing of the transaction
is ` 78.65 crore (Net). For the year ended March 31, 2022, the Company had exceptional gain of ` 58.21 crore (net) on account of
divestment of investment in an associate.

Note 43 : Earnings Per Share

Year ended Year ended
March 31, 2023 March 31, 2022
Net Profit After Tax (` Crore) 1,513.70 1,479.15

Number of Shares outstanding at the beginning of the year 1,022,581,079 1,022,486,273

Add : Shares Issued during the year 114,239 94,806
Number of Shares outstanding at the end of the year 1,022,695,318 1,022,581,079

Weighted Average Number of Equity Shares

For calculating Basic EPS 1,022,636,084 1,022,545,027
Effect of dilution:
Shared based payments 229,629 119,419
For calculating Diluted EPS 1,022,865,713 1,022,664,446

Earnings Per Share

(Face Value ` 1)
Basic (`) 14.80 14.47

Diluted (`) 14.80 14.46

Note 44 : Commitments
Estimated value of contracts remaining to be executed on capital account to the extent not provided for ` 66.50 crore (31-Mar-22 `
40.97 crore), net of advances there against of ` 15.15 crore (31-Mar-22 ` 37.11 crore).

Note 45 : Dividend
During the year 2022-23, no interim dividend has been paid.

303
 Note 46 : Contingent Liabilities
` Crore
As at As at
March 31, 2023 March 31, 2022
a) CLAIMS FOR EXCISE DUTIES, TAXES AND OTHER MATTERS
i) Excise duty and service tax matters 56.70 56.73
ii) Sales tax and VAT matters 34.29 65.07
iii) GST matters 0.18 -
iv) Income-tax matters 12.91 12.78
v) Other matters 3.00 3.00
b) GUARANTEES GIVEN ON BEHALF OF SUBSIDIARIES
i) Guarantee amounting to USD 50.50 million (31-Mar-22 USD 50.50 million) given 415.02 382.75
by the Company to Standard Chartered Bank Mauritius towards SBLC line given
to Godrej Tanzania Holdings Limited
ii) Guarantee amounting to USD 30.45 million (31-Mar-22 USD 36.75) given by the 250.25 278.54
Company to Sumitomo Mitsui Banking Corporation (Singapore) towards Banking
facility taken by Godrej SON Holdings, Inc.
iii) Guarantee amounting to USD Nil million (31-Mar-22 USD 49.58 million) given by - 375.80
the Company to HSBC (Singapore) against loan provided to Godrej Mauritius
Africa Holdings Ltd.
iv) Guarantee amounting to USD 24.20 million (31-Mar-22 USD 24.20 million) given 198.88 183.42
by the Company to Sumitomo Mitsui Banking Corporation (Singapore) towards
Banking facility taken by Godrej Mauritius Africa Holdings Ltd.
v) Guarantee amounting to USD 0.58 million (31-Mar-22 Nil) given by the Company 4.73
to SMBC Singapore towards IRS facility taken by Godrej Mauritius Africa Holdings
Ltd.
868.88 1,220.51
c) OTHER GUARANTEES
i) Guarantees issued by banks [secured by bank deposits under lien with the bank `
27.89 37.92
4.36 crore.
ii) Guarantee given by the Company to Kotak Mahindra Bank for credit facilities
- 0.30
extended to M/s. Broadcast Audience Research Council.
27.89 38.22
` Crore
As at As at
March 31, 2023 March 31, 2022
d) CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBT:
i) Claims by various parties on account of unauthorized, illegal and fraudulent acts
31.59 32.22
by an employee.
ii) Others - 0.06
e) OTHER MATTERS
The proposed Social Security Code, 2019, when promulgated, would subsume labour laws including Employees’ Provident Funds
and Miscellaneous Provisions Act and amend the definition of wages on which the organisation and its employees are to contribute
towards Provident Fund. The Company believes that there will be no significant impact on its contributions to Provident Fund due
to the proposed amendments. Additionally, there is uncertainty and ambiguity in interpreting and giving effect to the guidelines
of Hon. Supreme Court vide its ruling in February 2019, in relation to the scope of compensation on which the organisation and its
employees are to contribute towards Provident Fund. The Company will evaluate its position and act, as clarity emerges.

304
 Financial Statements | Standalone

Note 47 : Related Party Disclosures

A) Related Parties and their Relationship

a) Holding Company:

None

b) Subsidiaries:

Name of the Subsidiary Country % Holding as at % Holding as at

March 31, 2023 March 31, 2022

Belaza Mozambique LDA Mozambique 100% 100%

Canon Chemicals Limited Kenya 100% 100%

Charm Industries Limited Kenya 100% 100%

Consell (under voluntary Liquidation) Argentina 100% 100%

Cosmetica National Chile 100% 100%

Darling Trading Company Mauritius Limited Mauritius 100% 100%

Deciral S.A. Uruguay 100% 100%

DGH Phase Two Mauritius Mauritius 100% 100%

DGH Tanzania Limited Mauritius 100% 100%

DGH Uganda (Divested on Nov 21, 2022) Mauritius 0% 51%

Frika Weave (Pty) Ltd South Africa 100% 100%

Godrej (UK) Ltd UK 100% 100%

Godrej Africa Holdings Limited Mauritius 100% 100%

Godrej Consumer Care Limited (w.e.f. January 4, 2022) India 100% 100%

Godrej Consumer Products Limited Employees' Stock Option Trust India 100% 100%

Godrej Consumer Holdings (Netherlands) B.V. Netherlands 100% 100%

Godrej Consumer Investments (Chile) Spa Chile 100% 100%

Godrej Consumer Products (Netherlands) B.V. Netherlands 100% 100%

Godrej Consumer Products Bangladesh Limited Bangladesh 100% 100%

Godrej Consumer Products Dutch Cooperatief UA Netherlands 100% 100%

Godrej Consumer Products Holding (Mauritius) Limited Mauritius 100% 100%

Godrej Consumer Products International FZCO Dubai,UAE 100% 100%

Godrej CP Malaysia SDN BHD (Indirectly controlled by GCPL) Malaysia 100% 100%

Godrej East Africa Holdings Limited Mauritius 100% 100%

Godrej Global Mideast FZE Sharjah,UAE 100% 100%

Godrej Holdings (Chile) Limitada Chile 100% 100%

Godrej Household Products (Bangladesh) Pvt. Ltd. Bangladesh 100% 100%

Godrej Household Products Lanka (Pvt). Ltd. Sri Lanka 100% 100%

Godrej Indonesia IP Holdings Ltd Mauritius 100% 100%

Godrej Mauritius Africa Holdings Limited Mauritius 100% 100%

Godrej Mid East Holding Limited Dubai,UAE 100% 100%

Godrej Netherland B.V. Netherlands 100% 100%

Godrej Nigeria Limited Nigeria 100% 100%

Godrej Peru SAC (under voluntary liquidation) Peru 100% 100%

305
 Name of the Subsidiary Country % Holding as at % Holding as at
March 31, 2023 March 31, 2022

Godrej SON Holdings Inc. USA 100% 100%

Godrej South Africa Proprietary Limited South Africa 100% 100%

Godrej Tanzania Holdings Limited Mauritius 100% 100%

Godrej West Africa Holdings Limited Mauritius 100% 100%

Hair Credentials Zambia Limited Zambia 100% 100%

Hair Trading (Offshore) S.A.L. Lebanon 51% 51%

Indovest Capital (entity restated again on 24 Feb 2023)

th
Labuan 100% 100%

Issue Brazil LTDA (under voluntary liquidation) Brazil 100% 100%

Kinky Group (Proprietary) Limited South Africa 100% 100%

Laboratorio Cuenca S.A Argentina 100% 100%

Lorna Nigeria Limited Nigeria 100% 100%

Old Pro International, Inc. USA 100% 100%

Panamar Producciones SA (under voluntary liquidation) Argentina 100% 100%

PT. Godrej Business Service Indonesia Indonesia 100% 100%

PT Indomas Susemi Jaya Indonesia 100% 100%

PT. Godrej distribution Indonesia Indonesia 100% 100%

PT Sarico Indah Indonesia 100% 100%

PT. Godrej Consumer Products Indonesia Indonesia 100% 100%

Sigma Hair Industries Ltd. Tanzania 100% 100%

Strength of Nature LLC USA 100% 100%

Style Industries Ltd Kenya 100% 100%

Subinite (Pty) Ltd South Africa 100% 100%

Weave Ghana Ghana 100% 100%

Weave IP Holdings Mauritius Pvt. Ltd. Mauritius 100% 100%

Weave Mozambique Limitada Mozambique 100% 100%

Weave Senegal Senegal 100% 100%

Weave Trading Mauritius Pvt. Ltd. Mauritius 51% 51%

c) Investing Entity in which the reporting entity is an Associate

i) Godrej Industries Limited

ii) Godrej Seeds & Genetics Limited

d) Companies under common Control with whom transactions have taken place during the year

i) Godrej & Boyce Mfg. Co. Limited

ii) Godrej Agrovet Limited

iii) Godrej Tyson Foods Limited

iv) Godrej Properties Limited

v) Godrej Projects Development Private Limited

vi) Godrej One Premises Management Private Limited

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Financial Statements | Standalone

e) Key Management Personnel and Relatives

i) Mr. Adi Godrej Chairman Emeritus (till September 30, 2021)

ii) Ms. Nisaba Godrej Executive Chairperson (Chairperson & Managing director upto October
18,2021) /Daughter of Mr. Adi Godrej / Sister of Mr. Pirojsha Godrej and Ms.
Tanya Dubash

iii) Mr. Sudhir Sitapati Managing Director & CEO (From October 18, 2021)

iv) Mr. V. Srinivasan Chief Financial Officer and Company Secretary (till August 31, 2021)

v) Mr. Sameer Shah Chief Financial Officer (From September 1, 2021)

vi) Mr. Rahul Botadara Company Secretary and Compliance Officer(From September 1, 2021)

vii) Mr. Pirojsha Godrej Non-Executive Director / Son of Mr. Adi Godrej / Brother of Ms. Nisaba Godrej
and Ms. Tanya Dubash

viii) Mr. Nadir Godrej Non-Executive Director/ Brother of Mr. Adi Godrej

ix) Ms. Tanya Dubash Non-Executive Director/ Daughter of Mr. Adi Godrej /Sister of Mr. Pirojsha
Godrej and Ms. Nisaba Godrej

x) Mr. Jamshyd Godrej Non Executive Director

xi) Mr. Aman Mehta Independent Director (Up to August 31, 2021)

xii) Mr. Omkar Goswami Independent Director

xiii) Ms. Ireena Vittal Independent Director

xiv) Mr. Narendra Ambwani Independent Director

xv) Ms. Ndidi Nwuneli Independent Director

xvi) Ms. Pippa Armerding Independent Director

xvii) Mr. Sumeet Narang Independent Director

xviii) Mr. Burjis Godrej Son of Mr.Nadir Godrej

xix) Ms. Rati Godrej Wife of Mr.Nadir Godrej

xx) Mr. Sohrab Godrej Son of Mr.Nadir Godrej

xxi) Mr. Hormazd Godrej Son of Mr.Nadir Godrej

xxii) Mr.Navroze Godrej Son of Mr. Jamshyd Godrej

xxiii) Mr. Azaar Arvind Dubash Son of Ms. Tanya Dubash

f) Post employment Benefit Trust where the reporting entity exercises significant influence
i) Godrej Consumer Products Employees’ Provident Fund

307
308
B) The Related Party Transactions are as under :
` Crore
Subsidiary Associate Investing Entity Companies Key Post Total
Companies Company in which the Under Common Management employment
reporting entity Control Personnel and benefit trust
is an associate Relatives
Year Year Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended ended ended
March March March March March March March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Sale of Goods 63.89 114.20 - 0.13 29.63 33.47 2.65 1.49 - - - - 96.17 149.29
Sale of Capital Asset - - - - 0.04 0.01 0.02 - - - - - 0.06 0.01
Purchase of Materials and Spares 2.73 3.53 - - 99.81 81.57 - 7.04 - - - - 102.54 92.14
Purchase of Fixed Asset including
- - - - - - 0.02 0.24 - - - - 0.02 0.24
Assets under Construction
Advance Paid - - - - - - - - - - - 9.50 - 9.50
Advance received back - - - - - - - - - - - 9.50 - 9.50
Royalty and Technical Fees Received 23.93 22.46 - - - - - - - - - - 23.93 22.46
Royalty and Technical Fees Paid 0.16 0.13 - 0.55 - - - - - - - - 0.16 0.68
Establishment & Other Expenses Paid
(Including provision for doubtful debts 3.78 2.75 - 0.10 33.29 23.40 6.47 5.71 - - - - 43.54 31.96
if any)
Expenses Recovered 17.71 18.43 - - 1.37 1.24 0.19 0.01 - - - - 19.27 19.68
Investments Made 698.55 502.30 - - - - - - - - - - 698.55 502.30
Investments Sold / Redeemed - - - 32.04 - - - - - - - - - 32.04
Interest income 18.07 - - - - - 18.07 -
Guarantees Given / (Cancelled) 4.73 278.54 - - - - - - - - - - 4.73 278.54
Guarantee Commission Income 4.79 8.17 - - - - - - - - - - 4.79 8.17
Income from Business Support Services 4.01 12.45 - - - - - - - - - - 4.01 12.45
Lease Rentals Received - - - - 11.63 11.03 - - - - - - 11.63 11.03
Lease Rentals Paid - - - - 15.88 18.73 - - - - - - 15.88 18.73
Contribution during the year (Including
- - - - - - - - - - 15.03 17.39 15.03 17.39
Employees' Share)
Short Term Employment Benefits
(Including Commission on Profits and - - - - - - - - 21.84 16.48 - - 21.84 16.48
Sitting Fees)
Post Employment Benefits - - - - - - - - 0.53 0.49 - - 0.53 0.49
Other Long Term Benefits - - - - - - - - - 0.03 - - - 0.03
Share Based Payment - - - - - - - - 5.04 1.16 - - 5.04 1.16
TOTAL 842.35 962.96 - 32.82 191.65 169.45 9.35 14.49 27.41 18.16 15.03 36.39 1,085.79 1,234.27
 Financial Statements | Standalone

Outstanding Balances
` Crore
Guarantees
Receivables Payables Outstanding - Commitments
Given / (Taken)
As at As at As at As at As at As at As at As at
March March March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
Subsidiary Companies 74.20 96.13 2.40 1.30 868.87 1,220.51 - -
Investing Entity in which the reporting
2.97 3.06 10.88 10.09 (26.88) (26.88) - -
entity is an associate
Common Control 1.07 0.66 0.49 0.49 (1.21) (1.21) 0.24 0.24
Key Management Personnel and Relatives - - 2.22 2.36 - - - -
TOTAL 78.24 99.85 15.99 14.24 840.78 1,192.42 0.24 0.24
* amounts less than ` 0.01 crore

Note : Refer Note 8 for investments in subsidiaries and Note 46 for Guarantees given on behalf of subsidiaries

Note 48 : Forward Contracts

The Company uses forward exchange contracts to hedge its foreign exchange exposure relating to the underlying transactions and firm
commitments in accordance with its forex policy as determined by its Forex Committee. The Company does not use foreign exchange
forward contracts for trading or speculation purposes.

Forward / Spot Contracts outstanding are as follows:

As at March 31, 2023 As at March 31, 2022

In Million INR crores In Million INR crores
Forward Contracts to Sales (USD) - nominal amounts $9.41 77.35 $7.50 56.84
[2 contracts (31-Mar-22 : 2 contract]
Forward Contracts to Sales (EURO) - nominal amounts €- - € 2.00 16.84
[0 contracts (31-Mar-22: 4 contract]

Note 49 : Hedge Accounting

The objective of hedge accounting is to represent, in the Company financial statements, the effect of the Company use of financial
instruments to manage exposures arising from particular risks that could affect profit or loss. As part of its risk management strategy,
the Company makes use of financial derivative instruments namely cross currency interest rate swaps for hedging the risk of currency
and interest on some of the Floating/Fixed Foreign currency instrument.

For derivative contracts designated as hedge, the Company documents, at inception, the economic relationship between the hedging
instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used
to assess the hedge effectiveness. The derivative contracts have been taken to hedge currency & interest rate risk on Floating/Fixed
Foreign currency instrument. The tenor of hedging instrument may be less than or equal to the tenor of underlying.

Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109 depending upon
the type of hedge. The Company applies cash flow hedge accounting to hedge the variability in a) Floating/Fixed foreign currency
instrument.

The Company has a Board approved policy on assessment, measurement and monitoring of hedge effectiveness which provides a
guideline for the evaluation of hedge effectiveness, treatment and monitoring of the hedge effective position from an accounting and

309
 risk monitoring perspective. Hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. The
Company assesses hedge effectiveness on prospective basis. The prospective hedge effectiveness test is a forward looking evaluation
of whether or not the changes in the fair value or cash flows of the hedging position are expected to be highly effective on offsetting
the changes in the fair value or cash flows of the hedged position over the term of the relationship.

Hedge effectiveness is assessed through the application of critical terms match method & dollar off-set method. Any ineffectiveness in a
hedging relationship is accounted for in the statement of profit and loss.

The table below enumerates the Company hedging strategy, typical composition of the Company hedge portfolio, the instruments used
to hedge risk exposures and the type of hedging relationship:
Type of Type of
Sr Hedged Description of Hedging
risk/ hedge Description of hedging instrument hedging
No item hedging strategy instrument
position relationship
1 Currency Foreign Floating/Fixed Foreign Cross Cross currency - Interest Rate Swap Cash flow
Risk & Currency currency instrument is currency is a derivative instrument whereby the hedge
Interest loans converted into Fixed - Interest Group hedges fixed/floating foreign
Rate Risk Rate local currency Rate Swap currency instrument into fixed local
instrument currency instrument.

The tables below provide details of the derivatives that have been designated as cash flow hedges for the periods
presented:

For the period ended March 31, 2023

Derivative Gain/ Line item Amount

Derivative Financial (Loss) Change in Ineffec- in profit or reclassified Line item
Notional
Financial Instruments due to fair value tiveness loss that from the in profit or
Hedging principal
Instruments – Liabilities change in for the year recognized includes hedge loss affected
Instrument amounts
- Assets outstanding fair value recognized in profit or hedge reserve to by the
outstanding
outstanding (Refer Note for the in OCI loss ineffec- profit or reclassification
31) year tiveness loss
Cross 676.09 - 11.95 (22.27) (22.27) - NA NA NA
Currency
Interest
Rate Swap

Loss recognized in Other comprehensive income on hedging instrument amounting to ` 22.27 crore is offset by gain on hedged
item amounting to ` 22.46 crore.

For the period ended March 31, 2022

Derivative Gain/ Line item Amount

Derivative Financial (Loss) Change in Ineffec- in profit or reclassified Line item
Notional
Financial Instruments due to fair value tiveness loss that from the in profit or
Hedging principal
Instruments – Liabilities change in for the year recognized includes hedge loss affected
Instrument amounts
- Assets outstanding fair value recognized in profit or hedge reserve to by the
outstanding
outstanding (Refer Note for the in OCI loss ineffec- profit or reclassification
31) year tiveness loss
Cross - - - - - - NA NA NA
Currency
Interest
Rate Swap

310
 Financial Statements | Standalone

The table below provides a profile of the timing of the notional amounts of the Company hedging instruments (based on residual tenor)
along with the average price or rate as applicable by risk category:

` Crore
As at March 31, 2023
Particulars Less than
Total 1-5 years Over 5 yeras
1year
Cross currency - Interest Rate Swap
Notional principal amount 676.09 - 676.09 -
Average rate 4.80% - 4.80% -

` Crore
As at March 31, 2022
Particulars Less than
Total 1-5 years Over 5 yeras
1year
Cross currency - Interest Rate Swap
Notional principal amount - - - -
Average rate - - - -

The following table provides a reconciliation by risk category of the components of equity and analysis of OCI items resulting from
hedge accounting:

` Crore
Movement in Cash flow Movement in Cash flow
hedge reserve for the hedge reserve for the
Particulars
year ended year ended
March 31, 2023 March 31, 2022
Opening balance (0.75) (0.75)
Gain / (Loss) on the Effective portion of changes in fair value:
a) Interest rate risk - -
b) Currency risk 0.19 -
Net amount reclassified to profit or loss:
a) Interest rate risk - -
b) Currency risk - -
Tax on movements on reserves during the year (0.07) -
Closing balance (0.63) (0.75)

Note 50 : Employee Benefits

a) DEFINED CONTRIBUTION PLAN

Provident Fund / Super annuation fund:

The contributions to the Provident Fund of certain employees (including some employees of the erstwhile Godrej Household
Products Ltd) are made to a Government administered Provident Fund and there are no further obligations beyond making such
contribution. The Superannuation Fund constitutes an insured benefit, which is classified as a defined contribution plan as the
Company contributes to an Insurance Company and has no further obligation beyond making payment to the insurance company.

311
 b) DEFINED BENEFIT PLAN

Gratuity:

The Company participates in the Employees’ Group Gratuity-cum-Life Assurance Scheme of HDFC Standard Life Insurance
Co. Ltd., a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on
separation / termination in terms of the provisions of the Payment of Gratuity (Amendment) Act, 1997, or as per the Company’s
scheme whichever is more beneficial to the employees.

The Gratuity scheme of the erstwhile Godrej Household Products Ltd., which was obtained pursuant to the Scheme of
Amalgamation, is funded through Unit Linked Gratuity Plan with HDFC Standard Life Insurance Company Limited.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the
Balance Sheet date, carried out by an independent actuary.

The Company has a gratuity trust. However, the Company funds its gratuity payouts from its cash flows. Accordingly, the
Company creates adequate provision in its books every year based on actuarial valuation.

These benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and investment risk.

Provident Fund:

The Company manages the Provident Fund plan through a Provident Fund Trust for its employees which is permitted under The
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and is actuarially valued. The plan envisages contribution by the
employer and employees and guarantees interest at the rate notified by the Provident Fund authority. The contribution by employer
and employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates
on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic
factors and the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for
provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions
there is no shortfall as at March 31, 2023.

` Crore
As at As at
March 31, 2023 March 31, 2022
Plan assets at period end, at fair value 178.17 170.68
Provident Fund Corpus 170.01 168.26

Valuation assumptions under Deterministic Approach:

Weighted Average Yield 8.47% 8.45%
Guaranteed Rate of Interest 8.15% 8.10%

c) Amounts Recognised as Expense:

i) Defined Contribution Plan

Employer’s Contribution to Provident Fund including contribution to Family Pension Fund amounting to ` 11.77 crore (31-
Mar-22 ` 12.72 crore) has been included in Note 38 under Contribution to Provident and Other Funds.

312
 Financial Statements | Standalone

ii) Defined Benefit Plan

Gratuity cost amounting to ` 8.10 crore (31-Mar-22 ` 8.60 crore) has been included in Note 38 under Contribution to

Provident and Other Funds
d) The amounts recognised in the Company’s financial statements as at year end are as under:
` Crore
As at As at
March 31, 2023 March 31, 2022
i) Change in Present Value of Obligation
Present value of the obligation at the beginning of the year 62.04 66.33
Current Service Cost 4.25 4.49
Interest Cost 3.98 4.15
Actuarial (Gain) / Loss on Obligation- Due to Change in Demographic Assumptions - (1.42)
Actuarial (Gain) / Loss on Obligation- Due to Change in Financial Assumptions 0.20 (0.39)
Actuarial (Gain) / Loss on Obligation- Due to Experience (1.67) 0.54
Benefits Paid (8.99) (11.66)
Present value of the obligation at the end of the year 59.81 62.04

ii) Change in Plan Assets

Fair value of Plan Assets at the beginning of the year 1.99 0.61
Interest Income 0.13 0.04
Return on plan assets excluding interest income (0.07) (0.01)
Contributions by the Employer 8.00 13.00
Benefits Paid (8.99) (11.66)
Fair value of Plan Assets at the end of the year 1.06 1.99

iii) Amounts Recognised in the Balance Sheet:

Present value of Obligation at the end of the year 59.81 62.04
Fair value of Plan Assets at the end of the year 1.06 1.99
Net Liability recognised in the Balance Sheet 58.76 60.06

iv) Amounts Recognised in the Statement of Profit and Loss:

Current Service Cost 4.25 4.49
Interest Cost/Income on Obligation/ Plan assets (Net) 3.85 4.11
Net Cost Included in Personnel Expenses 8.10 8.60

v) Recognised in other comprehensive income for the year

Actuarial (Gain) / Loss on Obligation (1.47) (1.27)
Return on plan assets excluding interest income 0.07 0.01
Recognised in other comprehensive income (1.40) (1.26)

vi) Weighted average duration of Present Benefit Obligation 5 years 5 years

vii) Estimated contribution to be made in next financial year 8.15 8.38

viii) Major categories of Plan Assets as a % of total Plan Assets

Insurer Managed Funds 100% 100%

ix) Actuarial Assumptions

i) Discount Rate 7.30% P.A. 6.41% P.A.
ii) Salary Escalation Rate 10.00% P.A. 9.00% P.A.
iii) Mortality Indian Assured Lives Mortality
2012-14 (Urban)
The estimates of future salary increases, considered in actuarial valuation, take
account of inflation, seniority, promotion and other relevant factors, such as supply
and demand in the employment market.

313
 x) Maturity Analysis of Projected Benefit Obligation: From the Fund
` Crore
As at As at
March 31, 2023 March 31, 2022
Projected Benefits Payable in Future Years From the Date of Reporting
Within the next 12 months 10.84 10.56
2nd Following Year 8.24 8.84
3rd Following Year 8.21 8.14
4th Following Year 7.39 7.95
5th Following Year 6.81 6.58
Sum of Years 6 To 10 26.13 25.34

xi) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:
March 31, 2023 March 31, 2022
Increase Decrease Increase Decrease
Discount rate (1% movement) (2.31) 2.53 (2.47) 2.70
Future salary growth (1% movement) 2.44 (2.28) 2.61 (2.43)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Other details
Methodology Adopted for ALM Projected Unit Credit Method
Sensitivity analysis is an analysis which will give the movement in liability if the
Usefulness and Methodology adopted for assumptions were not proved to be true on different count. This only signifies
Sensitivity analysis the change in the liability if the difference between assumed and the actual is
not following the parameters of the sensitivity analysis.
Comment on Quality of Assets Since investment is with insurance company, Assets are considered to be secured.

Note 51 : Employee Stock Benefit Plans

I. EMPLOYEE STOCK GRANT SCHEME

a) The Company set up the Employees Stock Grant Scheme 2011 (ESGS) pursuant to the approval by the Shareholders on
March 18, 2011.

b) The ESGS Scheme is effective from April 1, 2011, (the “Effective Date”) and shall continue to be in force until (i) its
termination by the Board or (ii) the date on which all of the shares to be vested under Employee Stock Grant Scheme 2011
have been vested in the Eligible Employees and all restrictions on such Stock Grants awarded under the terms of ESGS
Scheme, if any, have lapsed, whichever is earlier.

c) The Scheme applies to the Eligible Employees of the Company or its Subsidiaries. The entitlement of each employee will be
decided by the Compensation Committee of the Company based on the employee’s performance, level, grade, etc.

d) The total number of Stock Grants to be awarded under the ESGS Scheme are restricted to 2,500,000 (Twenty Five Lac) fully
paid up equity shares of the Company. Not more than 500,000 (Five Lac) fully paid up equity shares or 1% of the issued
equity share capital at the time of awarding the Stock Grant, whichever is lower, can be awarded to any one employee in
any one year.

314
 Financial Statements | Standalone

e) The Stock Grants shall vest in the Eligible Employees pursuant to the ESGS Scheme in the period of 1 to 5 years subject to
conditions as may be decided by the Compensation Committee andthe Eligible Employee continues to be in employment
of the Company or the Subsidiary company as the case may be.

f) The Eligible Employee shall exercise her / his right to acquire the shares vested in her / him all at one time within 1 month
from the date on which the shares vested in her / him or such other period as may be determined by the Compensation
Committee.

g) The Exercise Price of the shares has been fixed at ` 1 per share. The fair value is treated as Employee Compensation
Expenses and charged to the Statement of Profit and Loss. The value of the options is treated as a part of employee
compensation in the financial statements and is amortised over the vesting period.

h) The details of the scheme are as below:

Scheme Grant Date No. of Vesting Exercise Price Weighted Exercise period
Options Condition (`) per share average
Granted Exercise Price
(`) per share
Employees From 2011 to 20,04,880 Vested in the 1.00 1.00 within 1 month
Stock Grant 2022 period of 1 to 5 from the date
Scheme 2011 years subject to of vesting
conditions.

Movement in the number of share options during the year:

As at As at
March 31, 2023 March 31, 2022
Outstanding at the beginning of the year 616,102 187,421
Add: Granted during the year 529,432 578,514
Less: Exercised during the year 114,239 94,806
Less: Forfeited/ lapsed during the year 41,060 55,027
Outstanding at the end of the year 990,235 616,102

Weighted average remaining contractual life of options as at 31st March, 2023 was ` 2.48 years (31-Mar-22 ` 2.97 years).

Weighted average equity share price at the date of exercise of options during the year was ` 824.69 (31-Mar-22 ` 958.87).

The fair value of the employee share options has been measured using the Black-Scholes formula. The following
assumptions were used for calculation of fair value of grants:
As at As at
March 31, 2023 March 31, 2022
Risk-free interest rate (%) 6.36% 5.34%
Expected life of options (years) 2.58 3.65
Expected volatility (%) 35.72% 34.73%
Dividend yield 0.00% 0.00%
The price of the underlying share in market at the time of option grant (`) 900.15 977.30

II. Pursuant to SEBI notification dated January 17, 2013, no further securities of the Company will be purchased from the open market.

315
 Note 52 : Corporate Social Responsibility (CSR) Expenditure

Expenditure related to CSR as per section 135 of the Companies Act, 2013 read with Schedule VII thereof, against the mandatory
spend of ` 31.99 crore (31-Mar-22 ` 30.46 crore):
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Amount required to be spent by the company during the year 31.99 30.46
Amount of expenditure incurred on CSR activities 31.69 24.22
Shortfall at the end of the year 0.30 6.24

Movement of provision
Opening 6.24 -
Utilised during the year (5.88) -
Provision recognised during the year 0.30 6.24
Closing 0.66 6.24

Reason for Shortfall

` 0.30 crore unutilised by partners against ongoing projects has been transferred into unspent CSR account. The same will be utilised in
FY24.

Nature of CSR Activities

i) Salon-I; livelihood enhancement project, training women for entry level jobs in beauty and wellness industry. ` 0.07 crore
remaining owing to pending 1 month training and placement of Salon-I students. It will be fully utilised by May 2023.

ii) EMBED; promoting preventive healthcare, providing technical support to national government in prevention and control of vector
borne diseases. ` 0.21 crore remaining against CHRI’s technical unit support to national and state government due to delays in
the national dengue conclave and IVM e-module. The same will be adjusted against FY24 budget and will be utilised by June
2023.

iii) Community Development programme; ` 0.02 crore supporting food kits to TB patients in Mumbai in partnership with BMC
through Niramaya Foundation

GCPL has deposited the unspent CSR amount of ` 0.30 crore (31-Mar-22 ` 6.24 crore) to the specified bank account post year end and
before April 30,2023.

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 Financial Statements | Standalone

Note 53 : Financial Instruments

A. Accounting classification and fair values
Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are

presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair value.
` Crore
Carrying amount / Fair Value Fair value Hierarchy
As at March 31, 2023 FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non Current
Investments in subsidiaries
Non-convertible Debentures - - 698.55 698.55 - - - -
Other Investments
Mutual Fund - - 199.08 199.08 199.08 - - 199.08
Loans - - 0.03 0.03 - - - -
Other non-current financial assets - - 17.53 17.53 - - - -
Current
Investments
Non-convertible Debentures with Non-
- - 728.37 728.37 728.37 - - 728.37
Banking Financial Companies
Mutual Funds 863.94 - - 863.94 863.94 - - 863.94
Commercial papers - - 342.02 342.02 342.02 - - 342.02
Deposits with Non-Banking Financial
175.26 175.26 - 175.26 - 175.26
Companies
Trade receivables - - 320.79 320.79 - - - -
Cash and cash equivalents - - 17.69 17.69 - - - -
Other bank balances - - 32.78 32.78 - - - -
Loans - - 0.05 0.05 - - - -
Refunds/Incentives receivables from government
- - 21.17 21.17 - - - -
authorities
Derivative assets - forward exchange contracts 1.03 - 1.03 - 1.03 - 1.03
Other current financial assets - - 31.52 31.52 - - - -
TOTAL 863.94 1.03 2,584.84 3,449.81 2,133.41 176.29 - 2,309.70
Financial liabilities
Non Current
Lease liabilities - - 28.80 28.80 - - - -
Current
Borrowings - - 23.82 23.82 - - - -
Lease liabilities 13.28 13.28 -
Trade and other payables - - 711.09 711.09 - - - -
Derivative Liabilities - forward exchange
- 11.95 - 11.95 - 11.95 - 11.95
contracts
Other Current Financial Liabilities - - 99.95 99.95 - - - -
TOTAL - 11.95 876.94 888.89 - 11.95 - 11.95
There were no transfers between levels 1 and 2 during the year.

317
 ` Crore
Carrying amount / Fair Value Fair value Hierarchy
As at March 31, 2022 FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non Current
Investments
Deposits with Non-Banking Financial Companies 25.20 25.20 - 25.20 - 25.20
Loans - - 0.03 0.03 - - - -
Other Non-Current Financial Assets - - 23.42 23.42 - - - -
Current - -
Investments - -
Non-convertible Debentures with Non-
- - 127.19 127.19 127.19 - - 127.19
Banking Financial Companies
Mutual Funds 311.60 - - 311.60 311.60 - - 311.60
Commercial papers - - 49.98 49.98 49.98 - - 49.98
Deposits with Non-Banking Financial Companies 277.63 277.63 - 277.63 - 277.63
Trade receivables - - 336.92 336.92 - - - -
Cash and cash equivalents - - 35.23 35.23 - - - -
Other Bank balances - - 309.74 309.74 - - - -
Loans - - 0.05 0.05 - - - -
R
 efunds/Incentives receivables from Govt.
- - 29.84 29.84 - - - -
Authorities
Derivative assets - forward exchange contracts 0.11 - - 0.11 - 0.11 - 0.11
Other Current Financial Assets - - 8.20 8.20 - - - -
TOTAL 311.71 - 1,223.43 1,535.14 488.77 302.94 - 791.71
Financial liabilities
Non Current
Lease liabilities - - 20.42 20.42 - - - -
Current
Lease liabilities 11.03 11.03 - -
Trade and other payables - - 625.30 625.30 - - - -
Derivative Liabilities - forward exchange
- - - - - - - -
contracts
Other current financial liabilities - - 89.34 89.34 - - - -
TOTAL - - 746.09 746.09 - - - -
There were no transfers between levels 1 and 2 during the year.

318
 Financial Statements | Standalone

B. Measurement of fair values

Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 1, Level 2 and Level 3 fair values, as well as the
significant unobservable inputs used.

Type Valuation technique Significant Inter-relationship

unobservable between
inputs significant
unobservable
inputs
and fair value
measurement
Mutual Fund Investments NAV quoted by the Mutual Fund NA NA
Investments in Non Convertible Debenture with Broker Quote NA NA
Non-Banking Financial Companies
Investments in Target Maturity Fund Broker Quote NA NA
Deposits with Non-Banking Financial Companies Present Value of expected cashflows NA NA
using an appropriate discounting rate
Derivative Financial Instruments MTM from Banks NA NA

319
 Note 54 : Financial Risk Management

The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company
seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance. The Company has
constituted a Risk Management Committee and risk management policies which are approved by the Board to identify and analyze the
risks faced by the Company and to set and monitor appropriate risk limits and controls for mitigation of the risks.

A. MANAGEMENT OF MARKET RISK:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments
affected by market risk includes borrowings, foreign currency receivables/payables, EEFC bank account balances, investments
and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks,
including currency and interest rate risks.

(i) Management of interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company does not have any exposure to interest rate risks since its borrowings and
investments are all in fixed rate instruments.

(ii) Management of price risk:

The Company invests its surplus funds in various debt instruments including liquid and short term schemes of debt
mutual funds, deposits with banks and financial institutions, commercial papers and non-convertible debentures (NCD’s).
Investments in mutual funds, deposits and NCD’s are susceptible to market price risk, arising from changes in interest
rates or market yields which may impact the return and value of the investments. This risk is mitigated by the Company by
investing the funds in various tenors depending on the liquidity needs of the Company.

(iii) Management of currency risk:

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Company has foreign currency trade payables and receivables and investment in non-
convertible debentures in a subsidaries and is therefore exposed to foreign exchange risk. The Company mitigates the
foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures
using derivative financial instruments like foreign exchange forward contracts and cross currency interest rate swaps . The
exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating
results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

320
 Financial Statements | Standalone

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

The currency profile of financial assets and financial liabilities as at March 31, 2023 is as below:
` Crore
March 31, March 31, March 31, March 31, March 31,
2023 2023 2023 2023 2023
GBP USD EURO SGD AED
Financial assets
Cash and cash equivalents - 6.02 - 0.22 -
Non-current investments - 698.55 - - -
Less: Currency Swap for NCD Investment - (698.55) - - -
Trade and other receivables - 97.67 29.01 - -
Less: Forward contracts for trade receivables - (77.35) - - -
Other Non-Current Financial Assets - 1.15 - - -
Other Current Financial Assets - 4.04 - - -
- 31.52 29.01 0.22 -

Financial liabilities
Trade and other payables 0.10 2.10 (1.05) 0.03 -
0.10 2.10 (1.05) 0.03 -

Net exposure (0.10) 29.42 30.06 0.19 -

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)
The currency profile of financial assets and financial liabilities as at March 31, 2022 is as below:
` Crore
March 31, March 31, March 31, March 31, March 31,
2022 2022 2022 2022 2022
GBP USD EURO SGD AED
Financial assets
Cash and cash equivalents - 1.04 - - -
Trade and other receivables - 97.49 31.52 - -
Less: Forward contracts for trade receivables - (56.84) (16.84) - -
Other Non-Current Financial Assets - 4.78 - - -
Other Current Financial Assets - 4.97 - - -
- 51.44 14.68 - -

Financial liabilities
Trade and other payables (0.16) 4.54 27.44 - -

Net exposure 0.16 46.90 (12.76) - -

321
 The following significant exchange rates have been applied during the year.
Year-end spot rate as at
INR March 31, 2023 March 31, 2022
GBP INR 101.87 99.55
USD INR 82.22 75.81
EUR INR 89.61 84.66
SGD INR 61.33 -
AED INR 22.37 -

Sensitivity analysis
A reasonably possible 5% strengthening (weakening) of GBP/USD/EURO against the Indian Rupee at March 31 would
have affected the measurement of financial instruments denominated in GBP/USD/EURO and affected profit or loss by
the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and
ignores any impact of forecast sales and purchases.
` Crore
Profit or loss
Effect in INR Strengthening Weakening
March 31, 2023
5% movement
GBP - -
USD 1.47 (1.47)
EUR 1.50 (1.50)
2.97 (2.97)

` Crore
Profit or loss
Effect in INR Strengthening Weakening
March 31, 2022
5% movement
GBP 0.01 (0.01)
USD 2.34 (2.34)
EUR (0.64) 0.64
1.71 (1.71)

B. MANAGEMENT OF CREDIT RISK:

Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the
Company. The Company is exposed to credit risk from its operating activities (trade receivables) and from its investing activities
including investments in mutual funds, commercial papers, deposits with banks and financial institutions and Non-convertible
debentures, foreign exchange transactions (including derivatives) and financial instruments.

Credit risk from trade receivables is managed through the Company’s policies, procedures and controls relating to customer
credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which
the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The
Company has no concentration of credit risk as the customer base is widely distributed.

Credit risk from investments of surplus funds is managed by the Company’s treasury in accordance with the Board approved
policy and limits. Investments of surplus funds are made only with those counterparties who meet the minimum threshold
requirements prescribed by the Board. The Company monitors the credit ratings and financial strength of its counter parties
and adjusts its exposure accordingly. Derivatives are entered into with banks as counter parties, which have high credit ratings
assigned by rating agencies.

322
 Financial Statements | Standalone

Management believes that the unimpaired amounts that are past due are still collectible in full, based on historical payment
behaviour and extensive analysis of customer credit risk, including underlying customers’ credit ratings if they are available. The
Company uses an allowance matrix to measure the expected credit loss of trade receivables from individual customers which
comprise of large number of small balances.

The movement in the allowance for impairment in respect of trade receivables is as follows

` Crore
As at As at
March 31, 2023 March 31, 2022
Opening balance 12.45 14.46
Impairment loss recognised / (released) during the year 7.00 (2.01)
Closing balance 19.45 12.45

C. MANAGEMENT OF LIQUIDITY RISK:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash obligations without incurring
unacceptable losses. The Company’s objective is to maintain at all times, optimum levels of liquidity to meet its obligations. The
Company closely monitors its liquidity position and has a robust cash management system. The Company maintains adequate
sources of financing including debt and overdraft from domestic and international banks and financial markets at optimized cost.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include estimated interest payments.

` Crore
Contractual cash flows
March 31, 2023 Total Less than 1 Year 1-3 years More than
3 years
Non-derivative financial liabilities
Lease liabilities 55.59 17.51 32.57 5.51
Borrowings 23.82 23.82 - -
Trade payables 711.09 711.09 - -
Other Financial Liabilities 99.95 99.95 - -
Total 890.45 852.37 32.57 5.51
Derivative financial liabilities
Forward exchange contracts
- Outflow - - - -
- Inflow 77.35 77.35 - -

323
 ` Crore
Contractual cash flows
March 31, 2022 Total Less than 1 Year 1-3 years More than
3 years
Non-derivative financial liabilities
Lease liabilities 35.48 12.61 22.64 0.23
Borrowings - - - -
Trade payables 625.30 625.30 - -
Other Financial Liabilities 89.34 89.34 - -
Total 750.12 727.25 22.64 0.23
Derivative financial liabilities
Forward exchange contracts
- Outflow - - - -
- Inflow 73.68 73.68 - -

Note 55 : Ratio Analysis And Its Elements

As At As At %
March 31, 2023 March 31, 2022 Change
Current ratio (Current Assets/ Current Liabilities ) 3.03 2.62 16%
Debt-Equity ratio (Non-Current + Current Borrowings )/ Total Equity) - - 0%
Debt service coverage ratio (PAT + Finance Cost + Depreciation and Amortization 99.31 79.43 25%
expense + Profit/Loss on sale of Fixed assets) / (Finance Cost +Repayment Lease
liabilities + Repayment of Long Term borrowings))
Return on Equity Ratio ( Net Profits after taxes – Preference Dividend)/Average Share 0.18 0.21 -16%
holder's Equity
Inventory turnover (in times) -(Net Sale of products/ Average Inventory) 10.89 9.13 19%
Trade Receivables Turnover ratio (in times)-(Net Sale of products/ Average trade 22.90 23.34 -2%
receivables)
Trade Payables turnover Ratio ( Total Purchases / Avg. Trade payables) 5.28 4.87 8%
Net working Capital turnover Ratio ( Net Sales / Working Capital) 3.43 4.45 -23%
Net Profit Ratio (Net Profit After Taxes /Net Sale of products) 0.20 0.22 -7%
Return on Capital Employed ( Earnings Before interest and Taxes / Capital Employed) 14.9% 18.1% -18%
Return on Investment :-
Fixed Deposits with Banks 4.95% 4.78% 4%
Fixed Deposits with NBFCs 5.24% 5.04% 4%
Non - Convertible Debentures 6.39% 4.44% 44%
Mutual Funds 5.82% 3.59% 62%
Commercial Papers 7.32% 4.72% 55%

Reasons for Change in Ratios :

i) Change in the debt service coverage ratio is due to decrease in debt service cost.

ii) Change in Return on investment on Non-convertible debentures is due to investment made at higher yields.

iii) Change in Return on Mutual Funds is due to higher yields.

iv) Change in Return on Commercial Papers is due to investments were made at higher yields.

324
 Financial Statements | Standalone

Note 56 : Utilisation Of Borrowed Funds And Share Premium

i) To the best of our knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii) To the best of our knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by
or on behalf of the Funding Party or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 57 : Struck Off Companies

Relationship with struck off companies

Transactions Balance Relationship with

Nature of
Name of struck off company during the year outstanding as at the Struck off
transactions
March 31, 2023 March 31, 2023 company
3H Health And Hygiene Pvt. Ltd Payables - - Vendor
Shakun & CO (Services) Pvt. Ltd Payables - - Vendor

* amounts less than ` 0.01 crore

Transactions Balance Relationship with

Nature of
Name of struck off company during the year outstanding as at the Struck off
transactions
March 31, 2022 March 31, 2022 company
3H Health And Hygiene Pvt. Ltd Payables 0.02 - Vendor

Note 58 : Disclosure U/S 186 (4) Of The Companies Act, 2013

Details of Investments made are disclosed under Note 8 and details of corporate guarantees given to banks on behalf of other body
corporates are disclosed under Note 46.

Note 59 : Subsequent Events

Subsequent to 31st March, 2023, The Company has acquired consumer care business for a consideration of ` 2,825 crore from
Raymonds Consumer Care Limited. No impact of the said acquisition has been given in these financial statements as this is a non-
adjusting event.

Apart from above there are no significant subsequent events that would require adjustments or disclosures in the standalone financial
statements.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board
Chartered Accountants
Firm Registration No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director & CEO
DIN : 00591503 DIN: 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and Compliance-
M. No. 046476 Officer

Mumbai: May 10, 2023

325
 Independent
Auditor’s Report
To the Members of the explanations given to us, and requirements that are relevant to our
Godrej Consumer Products Limited based on the consideration of report audit of the consolidated financial
of the branch auditor on financial statements in terms of the Code
Report on the Audit of the statements/financial information of Ethics issued by the Institute
Consolidated Financial Statements of such branch as was audited by of Chartered Accountants of India
the branch auditor and reports and the relevant provisions of the
Opinion of other auditors on separate/ Act, and we have fulfilled our other
consolidated financial statements ethical responsibilities in accordance
We have audited the consolidated of such subsidiaries as were audited with these requirements. We believe
financial statements of Godrej by the other auditors, the aforesaid that the audit evidence obtained
Consumer Products Limited consolidated financial statements by us along with the consideration
(hereinafter referred to as the give the information required by of report of the branch auditor
“Holding Company”) and its the Companies Act, 2013 (“Act”) and other auditors referred to in
subsidiaries (Holding Company and in the manner so required and give paragraph (a) of the “Other Matters”
its subsidiaries together referred a true and fair view in conformity section below, is sufficient and
to as “the Group”), which comprise with the accounting principles appropriate to provide a basis for
the consolidated balance sheet generally accepted in India, of the our opinion on the consolidated
as at 31 March 2023, and the consolidated state of affairs of financial statements.
consolidated statement of profit and the Group as at 31 March 2023, of
loss (including other comprehensive its consolidated profit and other Key Audit Matters
income), consolidated statement of comprehensive income, consolidated
changes in equity and consolidated changes in equity and consolidated Key audit matters are those matters
statement of cash flows for the cash flows for the year then ended. that, in our professional judgment
year then ended, and notes to the and based on the consideration
consolidated financial statements, Basis for Opinion of reports of other auditors on
including a summary of significant separate/consolidated financial
accounting policies and other We conducted our audit in statements of components audited
explanatory information in which accordance with the Standards by them, were of most significance
are included the Returns for the on Auditing (SAs) specified under in our audit of the consolidated
year ended on that date audited by Section 143(10) of the Act. Our financial statements of the current
the branch auditor of the Holding responsibilities under those period. These matters were
Company’s branch at Singapore SAs are further described in the addressed in the context of our
(hereinafter referred to as “the Auditor’s Responsibilities for the audit of the consolidated financial
consolidated financial statements”). Audit of the Consolidated Financial statements as a whole, and in
Statements section of our report. forming our opinion thereon, and we
In our opinion and to the best of We are independent of the Group do not provide a separate opinion on
our information and according to in accordance with the ethical these matters.

326
 Financial Statements | Consolidated

Revenue recognition

(See note 29 to consolidated financial statements)

The key audit matter How the matter was addressed in our audit
Revenue is measured net of any discounts and rebates. Our audit procedures included:
Recognition and measurement of discounts and rebates accruals
involves judgement and estimates. This leads to a risk of revenue • Assessing the Group’s compliance of revenue recognition
being misstated due to inaccurate estimation over discounts and accounting policies, including those relating to discounts
volume rebates. and rebates, with reference to Ind AS 115 ‘Revenue from
contracts with customers’ (applicable accounting standard);
Revenue is recognised when the control of the products being
sold has transferred to the customer. • Testing the design, implementation and operating
effectiveness of the Group’s general IT controls and key IT
There is a risk of revenue being overstated on account of application/ manual controls over the Group’s systems, with
manipulation in the timing of transfer of control, due to the the assistance of our IT specialists. These IT systems enable
pressure on the Group to achieve performance targets for the recording of revenue and computing discounts and volume
year. rebates in the general ledger accounting system;

Accordingly, revenue recognition is considered to be a key audit • Performing substantive testing by selecting statistical
matter. samples of revenue transactions recorded for the year as
well as period end cut-off and agreeing to the underlying
documents, which included sales invoices and shipping
documents;

• Performing substantive testing by agreeing statistical

samples of discounts and rebate accruals and
disbursements to underlying documents;

• Performing a retrospective assessment of discounts and

rebate accruals with prior period to evaluate the historical
accuracy; and

• Assessing manual journals posted to revenue to identify

unusual items

Impairment evaluation of Goodwill

(See note 52 to consolidated financial statements)

The key audit matter How the matter was addressed in our audit
The carrying amount of Goodwill represents 33% of the Group’s Our audit procedures included:
total assets.
• Evaluating design and implementation and testing
The identification of relevant Cash Generating Units (CGUs) for operating effectiveness of controls over the Group’s
the annual impairment evaluation of Goodwill by the Group process of impairment assessment and approval of
involves significant judgement. forecasts;

The impairment testing of Goodwill by the Group involves • Evaluating Group’s basis to identify relevant CGUs;
significant estimates and judgement due to the inherent
uncertainty involved in forecasting, discounting future cash flows, • Assessing Group’s valuation methodology and challenging
and determining the recoverable amount. the assumptions used relating to weighted average cost of
capital, revenue, earnings and long-term growth rates, by
Accordingly, impairment assessment of goodwill is considered to involving our valuation specialists.
be a key audit matter.
• Comparing the weighted average cost of capital with
sector averages for the relevant markets in which the CGUs
operate;

• Performing sensitivity analysis by assessing the effect

of possible reductions in the above assumptions on the
recoverable amount;

• Assessing the reliability of the financial projections

prepared by the Group by comparing projections for
previous financial years with actual results realized and
analysis of significant variances; and

• Evaluating the adequacy of disclosures in respect of

impairment evaluation of Goodwill in the consolidated
financial statements.

327
 Key Audit Matters

Key Audit Matters (Continued)

The key audit matter How the matter was addressed in our audit
Intangible Assets- impairment assessment Our audit procedures included:

(See Note 52 to consolidated financial statements) • Evaluating design and implementation and testing
operating effectiveness of controls over the Group’s
The carrying amount of trademarks / brands (indefinite life process of impairment assessment and approval of
intangible assets) represent 13% of the Group’s total assets. forecasts;

• Assessing the valuation methodology and challenging the

The annual impairment testing of these intangible assets by the
assumptions used, in particular those relating to forecast
Group involves significant estimates and judgment due to the
revenue growth and earnings, weighted average cost
inherent uncertainty involved in forecasting and discounting
of capital and royalty rates, with the assistance of our
future cash flows.
valuation specialists;

Accordingly, impairment assessment of intangible assets is • Assessing the reliability of the financial projections
considered to be a key audit matter. prepared by the Group by comparing projections for
previous financial years with actual results realized and
analysis of significant variances;

• Performing sensitivity analysis by assessing the effect

of possible reductions in the above assumptions on the
recoverable amount; and

• Evaluating the adequacy of disclosures in respect

of impairment evaluation of intangible assets in the
consolidated financial statements.

Other Information information is materially inconsistent accepted in India, including the

with the consolidated financial Indian Accounting Standards (Ind AS)

The Holding Company’s statements or our knowledge specified under Section 133 of the

Management and Board of Directors obtained in the audit, or otherwise Act. The respective Management and

are responsible for the other appears to be materially misstated. Board of Directors of the companies

information. The other information are responsible for maintenance

comprises the information included Management’s and of adequate accounting records

in the annual report, but does not Board of Directors’ in accordance with the provisions

include the financial statements and Responsibilities for the of the Act for safeguarding the

auditor’s reports thereon. The annual Consolidated Financial assets of each company and

report is expected to be made Statements for preventing and detecting

available to us after the date of this frauds and other irregularities;

auditor’s report. The Holding Company’s the selection and application of

Management and Board of Directors appropriate accounting policies;

Our opinion on the consolidated are responsible for the preparation making judgments and estimates
financial statements does not cover and presentation of these that are reasonable and prudent;
the other information and we will consolidated financial statements and the design, implementation
not express any form of assurance in term of the requirements of the and maintenance of adequate
conclusion thereon. Act that give a true and fair view internal financial controls, that were

of the consolidated state of affairs, operating effectively for ensuring

In connection with our audit of the consolidated profit/ loss and other the accuracy and completeness of
consolidated financial statements, comprehensive income, consolidated the accounting records, relevant to
our responsibility is to read the statement of changes in equity the preparation and presentation
other information identified above and consolidated cash flows of of the consolidated financial
when it becomes available and, in the Group in accordance with the statements that give a true and
doing so, consider whether the other accounting principles generally fair view and are free from material

328
 Financial Statements | Consolidated

misstatement, whether due to fraud detect a material misstatement the operating effectiveness of
or error, which have been used for when it exists. Misstatements can such controls.
the purpose of preparation of the arise from fraud or error and are
consolidated financial statements considered material if, individually • Evaluate the appropriateness
by the Management and Board of or in the aggregate, they could of accounting policies used
Directors of the Holding Company, reasonably be expected to and the reasonableness of
as aforesaid. influence the economic decisions accounting estimates and
of users taken on the basis of these related disclosures made by
In preparing the consolidated consolidated financial statements. the Management and Board of
financial statements, the respective Directors.
Management and Board of Directors As part of an audit in accordance
of the companies included in the with SAs, we exercise professional • Conclude on the
Group are responsible for assessing judgment and maintain professional appropriateness of the
the ability of each company to skepticism throughout the audit. We Management and Board of
continue as a going concern, also: Directors use of the going
disclosing, as applicable, matters concern basis of accounting in
related to going concern and • Identify and assess the risks preparation of consolidated
using the going concern basis of of material misstatement of financial statements and,
accounting unless the respective the consolidated financial based on the audit evidence
Board of Directors either intends statements, whether due to obtained, whether a material
to liquidate the company or to fraud or error, design and uncertainty exists related
cease operations, or has no realistic perform audit procedures to events or conditions that
alternative but to do so. responsive to those risks, and may cast significant doubt on
obtain audit evidence that is the appropriateness of this
The respective Board of Directors of sufficient and appropriate to assumption. If we conclude
the companies included in the Group provide a basis for our opinion. that a material uncertainty
are responsible for overseeing the The risk of not detecting a exists, we are required
financial reporting process of each material misstatement resulting to draw attention in our
company. from fraud is higher than for auditor’s report to the related
one resulting from error, as disclosures in the consolidated
Auditor’s fraud may involve collusion, financial statements or, if such
Responsibilities for forgery, intentional omissions, disclosures are inadequate,
the Audit of the misrepresentations, or the to modify our opinion. Our

Consolidated Financial override of internal control. conclusions are based on the

Statements audit evidence obtained up to

• Obtain an understanding of the date of our auditor’s report.
Our objectives are to obtain internal control relevant to the However, future events or
reasonable assurance about whether audit in order to design audit conditions may cause the Group
the consolidated financial statements procedures that are appropriate to cease to continue as a going
as a whole are free from material in the circumstances. Under concern.
misstatement, whether due to fraud Section 143(3)(i) of the Act,

or error, and to issue an auditor’s we are also responsible for • Evaluate the overall

report that includes our opinion. expressing our opinion on presentation, structure and

Reasonable assurance is a high whether the company has content of the consolidated

level of assurance, but is not a adequate internal financial financial statements, including

guarantee that an audit conducted controls with reference to the disclosures, and whether

in accordance with SAs will always financial statements in place and the consolidated financial

329
 statements represent the We also provide those ended on that date, before
underlying transactions and charged with governance giving effect to consolidation
events in a manner that achieves with a statement that we adjustments, as considered
fair presentation. have complied with relevant in the consolidated financial
ethical requirements regarding statements. These financial
• Obtain sufficient appropriate independence, and to statements/financial information
audit evidence regarding the communicate with them all have been audited by the
financial statements/financial relationships and other matters branch auditor whose report
information of such entities or has been furnished to us by the
that may reasonably be thought
business activities within the Management, and our opinion
to bear on our independence,
on the consolidated financial
Group to express an opinion and where applicable, related
statements in so far as it relates
on the consolidated financial safeguards.
to the amounts and disclosures
statements. We are responsible
included in respect of this
for the direction, supervision From the matters
branch and our report in terms
and performance of the audit of communicated with those
of sub-section (3) of Section 143
the financial statements/financial charged with governance, we
of the Act, in so far as it relates
information of such entities determine those matters that
to the aforesaid branch is based
included in the consolidated were of most significance in
solely on the report of the
financial statements of which we the audit of the consolidated
branch auditor.
are the independent auditors. financial statements of the
For the other entities included current period and are therefore b. We did not audit the financial
in the consolidated financial the key audit matters. We statements / financial
statements, which have been describe these matters in our information of 32 subsidiaries,
audited by other auditors, auditor’s report unless law or whose financial statements/
such other auditors remain regulation precludes public financial information reflects
responsible for the direction, disclosure about the matter total assets of ` 6,283.50 crores
supervision and performance of or when, in extremely rare as at 31 March 2023, total
the audits carried out by them. circumstances, we determine revenue of ` 8,267.62 crores,
We remain solely responsible that a matter should not total net profit after tax of
for our audit opinion. Our be communicated in our ` 172.98 crores and net cash
responsibilities in this regard are report because the adverse outflows of ` 369.26 crores
further described in paragraph consequences of doing so for the year ended on that
(a) of the section titled “Other would reasonably be expected date, before giving effect to

Matters” in this audit report. to outweigh the public interest consolidation adjustments, as
considered in the consolidated
benefits of such communication.
We communicate with those financial statements. These
financial statements/financial
charged with governance Other Matters
information have been audited
of the Holding Company of
by other auditors whose reports
which we are the independent a. We did not audit the financial
have been furnished to us
auditors regarding, among statements/information of
by the Management and our
other matters, the planned one branch, whose financial
opinion on the consolidated
scope and timing of the audit statements/financial information
financial statements, in so far
and significant audit findings, reflect total assets of ` 0.41
as it relates to the amounts and
including any significant crores as at 31 March 2023,
disclosures included in respect
deficiencies in internal control total revenue of ` Nil crores,
of these subsidiaries, and our
total net profit after tax of ` Nil
that we identify during our report in terms of sub-section
crores and net cash inflows
audit. (3) of Section 143 of the Act,
of ` 0.41 crores for the year

330
 Financial Statements | Consolidated

in so far as it relates to the financial statements/ financial audit of the aforesaid

aforesaid subsidiaries is based information are not material to consolidated financial
solely on the reports of the the Group. statements.
other auditors.
Our opinion on the consolidated b. In our opinion, proper
Our opinion on the consolidated financial statements, and our books of account as
financial statements, and our report on Other Legal and required by law relating
report on Other Legal and Regulatory Requirements below, to preparation of the
Regulatory Requirements below, is not modified in respect of aforesaid consolidated
is not modified in respect of the this matter with respect to the financial statements
above matters with respect to financial statements/financial have been kept so far
our reliance on the work done information certified by the as it appears from our
and the reports of the branch Management. examination of those
auditor and other auditors. books and the reports of
Report on Other the other auditors and
a. The financial statements/ Legal and Regulatory proper returns adequate
financial information of 2
Requirements for the purposes of our
subsidiaries, whose financial audit have been received
statements/financial information from the branch not visited
1. As required by the Companies
reflects total assets of ` 1.96 by us.
(Auditor’s Report) Order, 2020
crores as at 31 March 2023,
(“the Order”) issued by the
total revenue of ` Nil, total c. The report on the accounts
Central Government of India in
net profit after tax of ` Nil and of the branch office of the
terms of Section 143(11) of the
net cash flows of ` Nil crores Holding Company audited
Act, we give in the “Annexure
for the year ended on that under Section 143(8) of
A” a statement on the matters
date, before giving effect to the Act by branch auditor
specified in paragraphs 3 and
consolidation adjustments, as has been sent to us and
4 of the Order, to the extent
considered in the consolidated has been properly dealt
applicable.
financial statements, have not with by us in preparing this
been audited either by us or by report.
2 A. As required by Section 143(3)
other auditors. These unaudited
of the Act, based on our audit
financial statements/ financial d. The consolidated balance
and on the consideration of
information have been furnished sheet, the consolidated
reports of the other auditors on
to us by the Management and statement of profit and
separate/consolidated financial
our opinion on the consolidated loss (including other
statements of such branch and
financial statements, in so far comprehensive income),
subsidiaries as were audited by
as it relates to the amounts the consolidated statement
other auditors, as noted in the
and disclosures included in of changes in equity
“Other Matters” paragraph, we
respect of these subsidiaries, and the consolidated
report, to the extent applicable,
and our report in terms of statement of cash flows
that:
sub-section (3) of Section 143 dealt with by this Report
of the Act in so far as it relates are in agreement with
a. We have sought
to the aforesaid subsidiaries, is the relevant books of
and obtained all
based solely on such unaudited account maintained for the
the information and
financial statements / financial purpose of preparation of
explanations which to the
information. In our opinion and the consolidated financial
best of our knowledge
according to the information statements and with the
and belief were necessary
and explanations given to us
for the purposes of our returns received from the
by the Management, these
branch not visited by us.

331
 e. In our opinion, the separate/ consolidated financial borrowed funds or share
aforesaid consolidated statements of the branch and premium or any other
financial statements comply subsidiaries, as noted in the sources or kind of funds)
with the Ind AS specified “Other Matters” paragraph: by the Holding Company
under Section 133 of the or any of its subsidiary
Act. a. The consolidated financial company incorporated in
statements disclose India to or in any other
f. On the basis of the written the impact of pending person(s) or entity(ies),
representations received litigations as at 31 March including foreign entities
from the directors of the 2023 on the consolidated (“Intermediaries”), with the
Holding Company as on financial position of the understanding, whether
31 March 2023 taken on Group. Refer Note 28 and recorded in writing
record by the Board of 41 to the consolidated or otherwise, that the
Directors of the Holding financial statements. Intermediary shall directly
Company and the report or indirectly lend or invest
of the statutory auditors b. The Group did not have in other persons or entities
of its subsidiary company any material foreseeable identified in any manner
incorporated in India, losses on long-term whatsoever by or on behalf
none of the directors of contracts including of the Holding Company
the Group companies derivative contracts during or any of its subsidiary
incorporated in India is the year ended 31 March company incorporated
disqualified as on 31 March 2023. in India (“Ultimate
2023 from being appointed Beneficiaries”) or provide
as a director in terms of c. There has been no delay any guarantee, security or
Section 164(2) of the Act. in transferring amounts the like on behalf of the
to the Investor Education Ultimate Beneficiaries.
g. With respect to the and Protection Fund by
adequacy of the internal the Holding Company or (ii) The management of the
financial controls with its subsidiary company Holding Company and its
reference to financial incorporated in India subsidiary company whose
statements of the during the year ended 31 financial statements/
Holding Company and its March 2023. financial information have
subsidiary company and been audited under the
the operating effectiveness d (i) The management of the Act have represented to us
of such controls, refer to Holding Company and its and the other auditors of
our separate Report in subsidiary company whose such subsidiary company
“Annexure B”. financial statements/ that, to the best of its
financial information have knowledge and belief, as
B. With respect to the other been audited under the Act disclosed in the Note 56
matters to be included in the have represented to us and (b) to the consolidated
Auditor’s Report in accordance the other auditors of such financial statements, no
with Rule 11 of the Companies subsidiary company that, to funds have been received
(Audit and Auditors) Rules, the best of its knowledge by the Holding Company
2014, in our opinion and to the and belief, as disclosed or any of its subsidiary
best of our information and in the Note 56 (a) to the company incorporated in
according to the explanations consolidated financial India from any person(s)
given to us and based on the statements, no funds have or entity(ies), including
consideration of the reports been advanced or loaned foreign entities (“Funding
of the other auditors on or invested (either from

332
 Financial Statements | Consolidated

Parties”), with the 11(e), as provided under (i) of Section 197 of the Act.
understanding, whether and (ii) above, contain any The remuneration paid to
recorded in writing material misstatement. any director by the Holding
or otherwise, that the Company to its directors is
Holding Company or any e. The Holding Company and not in excess of the limit laid
of its subsidiary company its subsidiary company down under Section 197 of the
incorporated in India shall incorporated in India has Act. The Ministry of Corporate
directly or indirectly, lend neither declared nor paid Affairs has not prescribed other
or invest in other persons any dividend during the details under Section 197(16) of
or entities identified in year.
the Act which are required to be
any manner whatsoever
commented upon by us. In our
by or on behalf of the f. As proviso to rule 3(1) of
opinion and according to the
Funding Parties (“Ultimate the Companies (Accounts)
information and explanations
Beneficiaries”) or provide Rules, 2014 is applicable
given to us and based on the
any guarantee, security or for the Holding Company
report of the statutory auditors
the like on behalf of the or any of its subsidiary
of a subsidiary company
Ultimate Beneficiaries. company incorporated in
incorporated in India, the
India only with effect from
subsidiary company has not
(iii) Based on the audit 1 April 2023, reporting
paid / provided managerial
procedures that have been under Rule 11(g) of the
Companies (Audit and remuneration which would
considered reasonable
and appropriate in the Auditors) Rules, 2014 is not require requisite approvals

circumstances by us and applicable. mandated by the provisions of

that performed by the Section 197 of the Act.

auditor of the subsidiary C. With respect to the matter to
company incorporated be included in the Auditor’s For B S R & Co. LLP

in India whose financial Report under Section 197(16) of Chartered Accountants

statements/financial Firm’s Registration

the Act:
information has been No.: 101248W/W-100022

audited under the Act In our opinion and according

Vijay Mathur
nothing has come to our or to the information and
Partner
other auditor notice that explanations given to us, the
Membership No.:046476
has caused us or the other remuneration paid during the
UDIN: 23046476BGYAIG8131
auditor to believe that the current year by the Holding
representations under sub- Company to its directors is in
Mumbai, 10 May 2023
clause (i) and (ii) of Rule accordance with the provisions

333
 Annexure A to the Annexure B to the reference to financial statements and
such internal financial controls were
Independent Auditor’s Independent Auditor’s
operating effectively as at 31 March
Report on the Report on the
2023, based on the internal financial
Consolidated Financial consolidated financial controls with reference to financial
Statements of Godrej statements of Godrej statements criteria established by
Consumer Products Consumer Products such company/the Holding Company
Limited for the year Limited for the year considering the essential components
ended 31 March 2023 ended 31 March 2023 of such internal controls stated in the
Guidance Note on Audit of Internal
(Referred to in paragraph 1 under Report on the internal financial
Financial Controls Over Financial
‘Report on Other Legal and controls with reference to the
Reporting issued by the Institute of
Regulatory Requirements’ section aforesaid consolidated financial
Chartered Accountants of India (the
statements under Clause (i) of Sub-
of our report of even date) “Guidance Note”).
section 3 of Section 143 of the Act

(xxi) In our opinion and according

(Referred to in paragraph 2(A)(g) Management’s and
to the information and
under ‘Report on Other Legal and Board of Directors’
explanations given to us, there
Regulatory Requirements’ section Responsibilities for
are no qualifications or adverse
remarks by the respective
of our report of even date) Internal Financial
Controls
auditors in the Companies Opinion
(Auditor’s Report) Order, 2020
The respective company’s/Holding
reports of the companies In conjunction with our audit of the Company’s Management and the
incorporated in India and consolidated financial statements of Board of Directors are responsible
included in the consolidated Godrej Consumer Products Limited for establishing and maintaining
financial statements. (hereinafter referred to as “the internal financial controls based
Holding Company”) as of and for the on the internal financial controls
For B S R & Co. LLP with reference to financial
year ended 31 March 2023, we have
Chartered Accountants statements criteria established by
audited the internal financial controls
Firm’s Registration the respective company/Holding
with reference to financial statements
No.: 101248W/W-100022 Company considering the essential
of the Holding Company and such
components of internal control
company incorporated in India
Vijay Mathur stated in the Guidance Note. These
under the Act which is its subsidiary responsibilities include the design,
Partner
company, as of that date. implementation and maintenance of
Membership No.:046476
adequate internal financial controls
UDIN: 23046476BGYAIG8131 In our opinion and based on the that were operating effectively for
consideration of report of the other ensuring the orderly and efficient
Mumbai, 10 May 2023
auditor on internal financial controls conduct of its business, including
with reference to financial statements/ adherence to the respective
financial information of a subsidiary company’s/Holding Company’s
company as was audited by the other policies, the safeguarding of its
assets, the prevention and detection
auditor, the Holding Company and
of frauds and errors, the accuracy
such company incorporated in India
and completeness of the accounting
which is its subsidiary company, have,
records, and the timely preparation
in all material respects, adequate
of reliable financial information, as
internal financial controls with required under the Act.

334
 Financial Statements | Consolidated

Auditors’ Responsibility obtained by the other auditor of the

Inherent Limitations
subsidiary company in terms of their
of Internal Financial
Our responsibility is to express an report referred to in the Other Matter
Controls with
opinion on the internal financial paragraph below, is sufficient and
Reference to Financial
controls with reference to financial appropriate to provide a basis for our
Statements
statements based on our audit. We audit opinion on the internal financial
conducted our audit in accordance controls with reference to financial
Because of the inherent limitations
with the Guidance Note and the statements.
of internal financial controls with
Standards on Auditing, prescribed
reference to financial statements,
under Section 143(10) of the Act, Meaning of Internal including the possibility of collusion
to the extent applicable to an audit Financial Controls with or improper management override
of internal financial controls with Reference to Financial of controls, material misstatements
reference to financial statements. Statements due to error or fraud may occur and
Those Standards and the Guidance
not be detected. Also, projections of
Note require that we comply with A company’s internal financial controls any evaluation of the internal financial
ethical requirements and plan with reference to financial statements controls with reference to financial
and perform the audit to obtain is a process designed to provide statements to future periods are
reasonable assurance about whether reasonable assurance regarding the subject to the risk that the internal
adequate internal financial controls reliability of financial reporting and financial controls with reference to
with reference to financial statements the preparation of consolidated financial statements may become
were established and maintained and financial statements for external inadequate because of changes
if such controls operated effectively in purposes in accordance with generally in conditions, or that the degree
all material respects. accepted accounting principles. A of compliance with the policies or
company’s internal financial controls procedures may deteriorate.
Our audit involves performing with reference to financial statements
procedures to obtain audit evidence include those policies and procedures
about the adequacy of the internal that (1) pertain to the maintenance Other Matters
financial controls with reference of records that, in reasonable
to financial statements and their detail, accurately and fairly reflect Our aforesaid report under Section
operating effectiveness. Our audit the transactions and dispositions 143(3)(i) of the Act on the adequacy
of internal financial controls with of the assets of the company; (2) and operating effectiveness of
reference to financial statements provide reasonable assurance that the internal financial controls with
included obtaining an understanding transactions are recorded as necessary reference to financial statements/
of internal financial controls with to permit preparation of consolidated financial information insofar as it
reference to financial statements, financial statements in accordance relates to one subsidiary company,
assessing the risk that a material with generally accepted accounting which is a company incorporated in
weakness exists, and testing and principles, and that receipts and India, is based on the corresponding
evaluating the design and operating expenditures of the company are report of the auditor of such company
effectiveness of internal control being made only in accordance incorporated in India.
based on the assessed risk. The with authorisations of management
procedures selected depend on the and directors of the company; and Our opinion is not modified in respect
auditor’s judgement, including the (3) provide reasonable assurance of this matter.
assessment of the risks of material regarding prevention or timely
misstatement of the consolidated detection of unauthorised acquisition, For B S R & Co. LLP
financial statements, whether due to use, or disposition of the company’s Chartered Accountants
fraud or error. assets that could have a material Firm’s Registration
effect on the consolidated financial No.: 101248W/W-100022
We believe that the audit evidence we statements.
have obtained and the audit evidence Vijay Mathur
Partner
Membership No.:046476
UDIN: 23046476BGYAIG8131

Mumbai : 10 May 2023

335
 Consolidated Balance Sheet As at March 31, 2023
` Crore
Note As at As at
No. March 31, 2023 March 31, 2022
I. ASSETS
1. Non-current assets
(a) Property, Plant and Equipment 3 1,437.40 1,274.91
(b) Capital work-in-progress 4 41.61 114.75
(c) Right-of-use assets 5 96.67 98.45
(d) Goodwill 6 5,822.25 5,376.79
(e) Other Intangible assets 6 2,577.34 2,469.15
(f) Intangible assets under development 6A 3.81 1.69
(g) Financial Assets
(i) Other Investments 7 839.33 171.12
(ii) Loans 8 0.03 0.03
(iii) Others 9 21.61 25.09
(i) Deferred tax assets (net) 10D 702.75 731.51
(j) Other non-current assets 11 48.68 93.67
(k) Non-Current Tax Assets (net) 10C 101.32 89.63
Total Non Current Assets 11,692.80 10,446.79
2. Current assets
(a) Inventories 12 1,537.15 2,129.85
(b) Financial Assets
(i) Investments 13 2,189.65 844.31
(ii) Trade receivables 14 1,245.28 1,116.32
(iii) Cash and cash equivalents 15A 357.62 750.92
(iv) Bank balances other than (iii) above 15B 33.10 356.85
(v) Loans 16 0.05 0.05
(vi) Others 17 42.31 41.83
(c) Other current assets 18 400.81 447.14
Total Current Assets 5,805.97 5,687.27
TOTAL ASSETS 17,498.77 16,134.06
II. EQUITY AND LIABILITIES
1. EQUITY
(a) Equity Share capital 19 102.27 102.26
(b) Other equity 20 13,691.96 11,453.67
Total Equity 13,794.23 11,555.93
2. LIABILITIES
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 21 189.12 380.85
(ii) Lease liabilities 5 57.61 64.44
(b) Provisions 22 103.42 107.00
(c) Deferred tax liabilities (net) 10E 61.51 51.94
(d) Other non-current liabilities 23 1.57 2.29
Total Non Current liabilities 413.23 606.52
Current liabilities
(a) Financial liabilities
(i) Borrowings 24 844.84 1,226.81
(ii) Lease liabilities 5 38.01 32.24
(iii) Trade payables
(a) Total outstanding dues of Micro and Small Enterprises 25 46.40 23.24
(b) Total outstanding dues of creditors other than Micro and
25 1,776.77 2,139.82
Small Enterprises
(iv) Other financial liabilities 26 266.39 227.23
(b) Other current liabilities 27 229.03 223.84
(c) Provisions 28 75.16 76.21
(d) Current tax liabilities (Net) 10C 14.71 22.22
Total Current Liabilities 3,291.31 3,971.61
TOTAL EQUITY AND LIABILITIES 17,498.77 16,134.06
The accompanying notes 1 to 59 are an integral part of the Consolidated Financial Statements.

As per our report of even date attached For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm Regn No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director and CEO
DIN: 00591503 DIN : 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and
M.No. 046476 Compliance Officer
Mumbai: May 10, 2023

336
 Financial Statements | Consolidated

Consolidated Statement of Profit and Loss for the year ended March 31, 2023
` Crore
Note Year ended Year ended
Particulars
No. March 31, 2023 March 31, 2022
Revenue
I. Revenue from Operations 29 13,315.97 12,276.50
II. Other income 30 168.41 89.71
III. Total Income (I + II) 13,484.38 12,366.21
IV. Expenses
Cost of Materials Consumed 31 6,184.67 5,782.98
Purchases of Stock-in-Trade 305.18 353.65
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-
32 212.94 (61.54)
Progress
Employee Benefits Expense 33 1,111.48 1,104.14
Finance costs 34 175.74 110.16
Depreciation and Amortization Expenses 35 236.29 209.93
Other Expenses 36 3,071.24 2,702.16
Total Expenses 11,297.54 10,201.48
Profit before Exceptional Items, Share of Net Profit/ (loss) of equity
V. 2,186.84 2,164.73
accounted investees and Tax (III-IV)
VI. Share of net profit/ (loss) of equity accounted investees (net of income tax) - 0.28
VII. Profit before Exceptional Items and Tax (V+VI) 2,186.84 2,165.01
VIII. Exceptional Items (Net) 37 (54.11) (9.75)
IX. Profit before Tax (VII+VIII) 2,132.73 2,155.26
X. Tax expense:
(1) Current Tax 10A 396.25 397.31
(2) Deferred Tax 10A 34.02 (25.44)
Total Tax Expense 430.27 371.87
XI. Profit for the Year (IX-X) 1,702.46 1,783.39
XII. Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans 7.14 7.47
(ii) Income tax related to items that will not be reclassifed to profit or
10A (1.74) (1.76)
loss
5.40 5.71
B (i)
Items that will be reclassified to profit or loss
a) Exchange differences in translating financial statements of
547.30 368.01
foreign operations
b) Effective portion of gains and loss on hedging instruments
0.42 2.84
in a cash flow hedge
(ii) Income tax related to items that will be reclassifed to profit or
10A (0.07) -
loss
547.65 370.85
Other Comprehensive Income (net of income tax) (A+B) 553.05 376.56
XIII. Total Comprehensive Income for the Year (XI+XII) 2,255.51 2,159.95
Profit attributable to:
Owners of the Company 1,702.46 1,783.39
Non-controlling interests - -
Other Comprehensive Income attributable to:
Owners of the Company 553.05 376.56
Non-controlling interests - -
Total comprehensive income attributable to:
Owners of the Company 2,255.51 2,159.95
Non-controlling interests - -
XIV. Earnings per equity share (`)
1. Basic 38 16.65 17.44
2. Diluted 16.65 17.44
The accompanying notes 1 to 59 are an integral part of the Consolidated Financial Statements.
As per our report of even date attached For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm Regn No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director and CEO
DIN: 00591503 DIN : 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and
M.No. 046476 Compliance Officer
Mumbai: May 10, 2023

337
 Consolidated Statement of Cash Flows for the year ended March 31, 2023
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Tax 2,132.73 2,155.26
Adjustments for :
Non-Cash Items
Depreciation and amortization expenses 236.29 209.93
Unrealised Foreign Exchange (Gain) / Loss (10.26) (10.17)
Bad Debts Written off 5.40 3.20
Provision / Write off for Doubtful Debts / Advances 6.46 2.28
(Release)/ Provision/ write off for Non Moving Inventory 3.05 (5.48)
Provision towards Litigations 10.62 -
Write off /(write back) of Old Balances (1.07) 0.06
Expenses on Employee Stock Grant Scheme (ESGS) 20.16 11.96
Impairment on intangible assets 6.03 60.19
Finance cost 175.74 110.16
(Profit) /Loss on sale of Property, Plant & Equipment and Intangible assets (net) (1.24) 1.97
(Profit) on Sale of Investments (net) (48.15) (10.90)
Profit on divestment of Associate (Net) - (39.79)
(Reversal) /Provision for diminution in the value of investments - (15.38)
Fair value (Gain) on financial assets measured at FVTPL (net) (5.83) (0.62)
Interest Income (95.56) (59.58)
Share of profit in associate - (0.28)
Adjustment due to hyperinflation 41.39 21.47
343.03 279.02
Operating Cash Flows Before Working Capital Changes 2,475.76 2,434.28
Adjustments for :
Decrease/(Increase) in inventories 555.00 (384.17)
(Increase) in trade receivables (165.16) (88.89)
Decrease in loans - 0.02
Decrease in other financial assets 8.03 30.69
Decrease /(Increase) in other non-current assets 8.69 (1.70)
Decrease/(Increase) in other current assets 56.40 (96.97)
(Decrease)/ Increase in trade and other payables (370.03) 83.21
Increase/ (Decrease) in other financial liabilities 4.05 (74.98)
(Decrease) in other liabilities and provisions (3.64) (3.38)
93.34 (536.17)
Cash Generated from Operating Activities 2,569.10 1,898.11
Adjustment for :
Income Taxes paid (net) (418.45) (447.54)
Net Cash Flow from Operating Activities ( A ) 2,150.65 1,450.57
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant & equipment and intangible assets (net) 7.66 2.78
Investment in Mutual Fund (Net) (227.40) (279.30)
Investment in Deposits with NBFCs (674.88) (165.64)
Redemption in Deposits with NBFCs 25.20 -
Proceeds from divestment of Associate (Net) (988.01) (387.37)
Payment of liabilities for Business Acquisitions - 78.65
(Investments) in Non Current Investments (11.82) (172.36)
Interest Received 110.91 59.01
Net Cash Flow (used in) in Investing Activities ( B ) (1,758.34) (864.23)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Allotment of Equity Shares under Employee Stock Grant Scheme 0.01 0.01
Proceeds /repayments of short term borrowings (Net) (223.64) 535.24
Repayments of long term borrowings (410.72) (755.08)

338
 Financial Statements | Consolidated

Consolidated Statement of Cash Flows for the year ended March 31, 2023
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Finance Cost paid (111.62) (112.30)
Principal Payment of lease liabilities (40.62) (40.65)
Finance cost paid towards Lease liabilities (7.72) (6.74)
Net Cash Flow (used in) Financing Activities ( C ) (794.31) (379.52)
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (402.00) 206.82
CASH AND CASH EQUIVALENTS:
As at the beginning of the year ** (Refer Note 15A) 750.92 524.13
Less: Cash credit (Refer Note 24) (0.06) (0.36)
Effect of exchange difference on translation of cash and cash equivalents on
3.94 20.27
consolidation
As at the end of the year ** (Refer Note 15A) 357.62 750.92
Less: Cash credit (Refer Note 24) (4.82) (0.06)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (402.00) 206.82
* Cash and Cash equivalents includes cash credits, that are repayable on demand and form an integral part of Group’s cash management.

` Crore
Year ended Year ended
Movement of loans and borrowings:
March 31, 2023 March 31, 2022

Opening Balance 1,607.60 1,767.96

Cash Flows (net) (634.36) (219.84)
Add/(Less): Exchange difference 55.90 59.48
Closing Balance 1,029.14 1,607.60

Note:
1 The above consolidated statement of cash flows has been prepared under the ‘Indirect Method’ as set out in IND AS 7,
‘Statement of Cash Flows’.
2 The accompanying notes 1 to 59 are an integral part of the Consolidated Financial Statements.

As per our report of even date attached For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm Regn No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director and CEO
DIN: 00591503 DIN : 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and
M.No. 046476 Compliance Officer
Mumbai: May 10, 2023

339
 Consolidated Statement of Changes in Equity for the year ended March 31, 2023

(a) Equity Share Capital

Note No. ` Crore
As at April 1, 2021 102.25
Changes in equity share capital during the year 0.01
As at March 31, 2022 102.26
As at April, 2022 102.26
Changes in equity share capital during the year 19 0.01
As at March 31, 2023 102.27

(b) Other Equity (Refer Note 19)

` Crore
Other Comprehensive
Reserves & Surplus
Income
Exchange
differences
Effective on Total
Particulars Total
Securities General Other Retained portion of translating Equity
Premium Reserve Reserves Earnings Cash Flow the financial
Hedges statements
of foreign
operations
Balance as at April 1, 2021 1,418.61 154.05 9.14 7,691.93 (3.46) 66.38 9,336.65 9,336.65
Profit for the year - 1,783.39 - - 1,783.39 1,783.39
Remeasurements of defined benefit plans (net
- - - 5.71 - - 5.71 5.71
of tax)
Other comprehensive income for the year (Net) - - - - 2.84 368.01 370.85 370.85
Total comprehensive income for the year - - - 1,789.10 2.84 368.01 2,159.95 2,159.95
Premium received on allotment of shares /
6.32 - (6.32) - - - - -
Exercise of Share Options
Deferred employee compensation expense - - 11.96 - - - 11.96 11.96
Revaluation of put option liability - - - (54.89) - - (54.89) (54.89)
Balance as at March 31, 2022 1,424.93 154.05 14.78 9,426.14 (0.62) 434.39 11,453.67 11,453.67
Balance as at April 1, 2022 1,424.93 154.05 14.78 9,426.14 (0.62) 434.39 11,453.67 11,453.67
Profit for the year - 1,702.46 - - 1,702.46 1,702.46
Remeasurements of defined benefit plans (net
- - - 5.40 - - 5.40 5.40
of tax)
Other comprehensive income for the year (Net) - - - - 0.35 547.30 547.65 547.65
Total comprehensive income for the year - - - 1,707.86 0.35 547.30 2,255.51 2,255.51
Premium received on allotment of shares /
9.77 - (9.77) - - - - -
Exercise of Share Options
Deferred employee compensation expense - - 20.16 - - - 20.16 20.16
Revaluation of put option liability - - - (37.38) - - (37.38) (37.38)
Balance as at March 31, 2023 1,434.70 154.05 25.17 11,096.62 (0.27) 981.69 13,691.96 13,691.96

The accompanying notes 1 to 59 are an integral part of the Consolidated Financial Statements.

As per our report of even date attached For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm Regn No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director and CEO
DIN: 00591503 DIN : 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and
M.No. 046476 Compliance Officer
Mumbai: May 10, 2023

340
 Financial Statements | Consolidated

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

1) Corporate 2) Basis of preparation, assets and liabilities into current

and non-current.
Information Measurement
and Significant b. Basis of measurement
Godrej Consumer Products Accounting Policies
Limited (the Company) was
These Consolidated financial
incorporated on November 29, 2.1 Basis of preparation and
statements have been prepared
2000, to take over the consumer measurement
on a historical cost basis, except
products business of Godrej a. Basis of preparation
for the following assets and
Soaps Limited (subsequently
liabilities which have been
renamed as Godrej Industries The Consolidated financial
measured at fair value or
Limited), pursuant to a Scheme statements have been prepared
revalued amounts:
of Arrangement as approved in accordance with Indian
by the High Court, Mumbai. Accounting Standards (“Ind
• Certain financial assets
The Company is a fast moving AS”) as notified by Ministry of
and liabilities (including
Consumer Goods company, Corporate Affairs pursuant to
derivative instruments)
manufacturing and marketing Section 133 of the Companies
measured at fair value
Household and Personal Care Act, 2013 (‘Act’) read with the
[refer accounting policy
products. The Company along Companies (Indian Accounting
regarding financial
with its subsidiaries is a public Standards) Rules, 2015 as
instruments Note 2.4 (f)]
company limited by shares, amended from time to time.
incorporated and domiciled
• Defined benefit plans
in India and is listed on the The Consolidated financial
– plan assets and share
Bombay Stock Exchange statements were authorized for
based payments measured
(BSE) and the National Stock issue by the Company’s Board
at fair value [Note 2.4 (l)]
Exchange (NSE). The Company’s of Directors on May 10, 2023.
registered office is at 4th Floor,
c. Principles of consolidation
Godrej One, Pirojshanagar, Current versus non-current
Eastern Express Highway, classification
The Company consolidates all
Vikhroli (east), Mumbai – 400 the entities which are controlled
079. These Consolidated All assets and liabilities have
by it.
financial statements been classified as current or
comprise the Company and non-current as per the Group’s The Company establishes
its subsidiaries (referred to normal operating cycle and control when, it has the power
collectively as the ‘Group’). other criteria set out in the over the entity, is exposed or
Schedule III to the Companies has rights to variable return
Act, 2013. Based on the nature from its involvement with the
of products and the time entity and has the ability to
taken between acquisition affect the entity’s returns by
of assets for processing and using its power over relevant
their realization in cash and activities of the entity.
cash equivalents, the Group
has ascertained its operating Entities controlled by the
cycle as twelve months for the Company are consolidated from
purpose of classification of the date control commences
until the date control ceases.

341
 All inter-company transactions, liabilities and contingent e. Classification of Argentina as a
balances and income and liabilities that meet the hyperinflationary economy
expenses are eliminated in full condition for recognition are
on consolidation. recognized at their fair value at The Argentinian economy was
the acquisition date. designated as hyperinflationary
Changes in the Company’s from 1 July 2018. As a
interests in subsidiaries that do Purchase consideration paid result, application of Ind AS
not result in a loss of control in excess of the fair value of 29 ‘Financial Reporting in
are accounted as equity the net assets acquired is Hyperinflationary Economies’
transactions. The carrying recognized as goodwill. Where has been applied to the
amount of the Company’s the fair value of the identifiable Group’s subsidiaries whose
interest and non-controlling assets and liabilities exceeds functional currency is the
interest are adjusted to reflect the cost of acquisition after Argentinian Peso. Ind AS 29
the change in their relative reassessing sale values of the requires that adjustments are
interest in the subsidiaries. Any net assets and contingent applicable from the start of
difference between the amount liabilities, the excess is the group’s reporting period
at which the non- controlling recognized as capital reserve. i.e. from 1st April 2018. The
interest are adjusted and the effect of retranslation of
fair value of the consideration The interest of non-controlling Equity share capital, securities
paid or received is recognized shareholders is initially premium and other reserves
directly in equity and attributed measured either at fair value due to hyperinflation has
to shareholders of the or at non- controlling interest’s been recorded in the Foreign
Company. proportionate share of currency translation reserve.
acquiree’s identifiable net assets
Investments in associate is at the date of acquisition. The The application of Ind AS 29
accounted using equity method. choice of measurement basis includes:
They are initially recognized at is made on an acquisition by
cost which includes transaction acquisition basis. Subsequent to • Adjustment of historical
costs. Subsequent to initial acquisition, the carrying amount cost non-monetary assets
recognition, the consolidated of non-controlling interests is and liabilities for the
financial statements includes the amount of those interests change in purchasing
Group’s share of profit or loss at initial recognition plus the power caused by inflation
and OCI of equity accounted non-controlling interest’s share from the date of initial
investees until the date on of subsequent changes in equity recognition to the balance
which significant influence of subsidiaries. sheet date;
ceases.
Business combinations arising • Adjustment of the income
d. Business combination and from transfer of interests in statement for inflation
goodwill entities that are under common during the reporting
control are accounted at period;
The Group accounts for historical cost. The difference
its business combinations between any consideration • Translation of the income
under acquisition method of given and the aggregate statement at the closing
accounting. Acquisition related historical carrying amounts rate instead of an average
costs are recognized in the of assets and liabilities of the rate; and
Consolidated statement of acquired entity are recorded in
profit and loss as incurred. The capital reserve.
acquiree’s identifiable assets,

342
 Financial Statements | Consolidated

• Adjustment of the income index is computed basis of intangible assets and

statement to reflect the the periodic inflation index. determining intangible
impact of inflation and Below are the indexes assets having an indefinite
exchange rate movement used for calculation of useful life; [Note 2.4 (b)]
on holding monetary hyperinflation impact in
assets and liabilities in local Argentina Peso. These are iii. Recognition and
currency. for directional purpose as measurement of defined
computation is done basis benefit obligations, key
The main effects on the monthly index. actuarial assumptions;
Group Consolidated [Note 44]
financial statements for the As at Index*
year ended March 31, 2023 31 Mar’23
st
18334.51 iv. Recognition of deferred tax
are: assets, availability of future
31st Mar’22 8975.04
taxable profit against which
31st Mar’21 5785.99
• Net assets increased by tax losses carried forward
31st Mar’20 4056.11
` 28.68 crore (Mar-31-2022: and MAT credit can be
*Source - National Institute of
` 24.85 crore) mainly due used; [Note 2.4 (n)]
Statistics and Censuses of the
to restatement of property,
Argentine Republic.
plant and equipment, v. Recognition and
intangible assets, deferred measurement of provisions
2.2 Key estimates and
tax assets and inventories and contingencies, key
assumptions
with corresponding assumptions about the
increase in Total equity as likelihood and magnitude
In preparing these Consolidated
at March 31, 2023; of an outflow of resources;
financial statements,
[Note 2.4(j)]
management has made
• Total Revenue from
judgements, estimates and
operation is increased by vi. Fair valuation of employee
assumptions that affect the
` 2.39 crore (Mar-31-2022: share options, Key
application of accounting
` 43.40 crore); assumptions made with
policies and the reported
respect to expected
amounts of assets, liabilities,
• Profit after tax is reduced volatility; [Note 2.4(I)]
disclosure of contingent
by ` 95.29 crore (Mar-31-
liabilities, income and expenses.
2022: ` 50.48 crore) and vii. Estimates of rebates and
Actual results may differ from
sales incentives accruals
these estimates.
• A net monetary loss of [Note 2.4 (k)]
` 53.89 crore (Mar-31-
The areas involving critical
2022: loss of ` 18.68 crore) viii. Fair value of financial
estimates or judgements are:
(grouped under Finance instruments [Note 2.3]
cost / Other income)
i. Determination of the
is recognized from the ix. Impairment of Goodwill
estimated useful lives of
inflation and exchange [Note 2.4 (b)]
tangible assets and the
rate movements in the
assessment as to which x. Impairment of financial and
year on the net monetary
components of the cost non-financial assets [Note
items held in Argentinian
may be capitalized; [Note 2.4 (d) and (f)]
Peso and adjustment to
2.4 (a)]
income statement. The
Argentina hyperinflation
ii. Determination of the
estimated useful lives

343
 2.3 Measurement of fair values Level 2: inputs other than its purchase price, including
quoted prices included in Level import duties and non-
The Group’s accounting policies 1 that are observable for the refundable purchase taxes, after
and disclosures require certain asset or liability, either directly deducting trade discounts and
financial and non-financial assets (i.e. as prices) or indirectly (i.e. rebates, any directly attributable
and liabilities to be measured at derived from prices). costs of bringing the asset to
fair values. its working condition for its
Level 3: inputs for the asset intended use and estimated
The Group has an established or liability that are not based costs of dismantling and
control framework with on observable market data removing the item and restoring
respect to the measurement (unobservable inputs). the item and restoring the site
of fair values. The Group on which it is located.
uses valuation techniques If the inputs used to measure
that are appropriate in the the fair value of an asset or a If significant parts of an item of
circumstances and for which liability fall into different levels property, plant and equipment
sufficient data are available to of the fair value hierarchy, then have different useful lives,
measure fair value, maximizing the fair value measurement is then they are accounted for
the use of relevant observable categorized in its entirely in as separate items (major
inputs and minimizing the use of the same level of the fair value components) of property, plant
unobservable inputs. hierarchy as the lowest level and equipment.
input that is significant to the
The management regularly entire measurement. Any gain or loss on
reviews significant unobservable derecognition of an item of
inputs and valuation The Group recognizes transfers property, plant and equipment
adjustments. If third party between levels of the fair is included in profit or loss when
information, such as broker value hierarchy at the end of the item is derecognized.
quotes or pricing services, is the reporting period during
used to measure fair values, which the change has occurred. Subsequent costs are included
then the management assesses Further information about the in the assets carrying amount
the evidence obtained from assumptions made in measuring or recognized as a separate
the third parties to support the fair value is included in the Note asset, as appropriate only if
conclusion that such valuations 2.4.(f). it is probable that the future
meet the requirements of Ind economic benefits associated
AS, including the level in the fair 2.4 Significant Accounting Policies with the item will flow to the
value hierarchy in which such Group and the cost of the
valuations should be classified. a. Property, Plant and Equipment item can be reliably measured.
Items of property, plant and The carrying amount of any
Fair values are categorized into equipment, other than freehold component accounted for as a
different levels in a fair value land, are measured at cost less separate asset is derecognized
hierarchy based on the inputs accumulated depreciation and when replaced. All other repairs
used in the valuation techniques any accumulated impairment and maintenance are charged
as follows. losses. Freehold land is carried to profit and loss during the
at cost. reporting period in which they
Level 1: quoted prices are incurred.
(unadjusted) in active markets The cost of an item of property,
for identical assets or liabilities. plant and equipment comprises

344
 Financial Statements | Consolidated

Property, plant and equipment • Vehicles are depreciated Goodwill

which are not ready for over a period ranging Goodwill on acquisition
intended use as on the date of from 5 years to 8 years of subsidiaries and on
Balance Sheet are disclosed as depending on the use of consolidation is included in
“Capital work-in-progress”. vehicles. intangible assets. Goodwill is
not amortized but it is tested
Advances paid towards the • In some of the subsidiaries, for impairment annually or more
acquisition of property, plant useful lives are estimated frequently if events or changes
and equipment outstanding to be lower or higher as in circumstances indicate that
at each balance sheet date is compared to useful lives the asset may be impaired,
classified as capital advances defined in Schedule II and is carried at cost less
under “Other Non-Current of the Companies Act accumulated impairment losses.
Assets”. 2013 for certain class of Gains and losses on the disposal
assets due to different of an entity include the carrying
Depreciation geographical environment. amount of goodwill relating to
Depreciation is provided, under the entity sold.
the Straight Line Method, pro Depreciation methods, useful
rata to the period of use, based lives and residual values are Other intangible assets
on useful lives specified in reviewed at each reporting date Intangible assets with definite
Schedule II to the Companies and adjusted if appropriate. lives are amortized over the
Act, 2013, except the following useful economic life and
items where useful lives b. 
Goodwill and other Intangible assessed for impairment
estimated by the management Assets whenever there is an indication
based on internal technical that the intangible asset may
assessment, past trends and Intangible assets acquired be impaired. The amortization
expected operational lives differ separately are measured method and period are
from those provided in Schedule on initial recognition at reviewed at the end of each
II of the Companies Act 2013: cost. The cost of intangible reporting period. Changes
assets acquired in a business in the expected useful life
• Leasehold land is combination is their fair value or expected pattern of
amortized equally over the at the date of acquisition. consumption of future economic
lease period Following initial recognition, benefits embodied in the
intangible assets are carried assets are considered to modify
• Leasehold Improvements at cost less any accumulated amortization period or method,
are depreciated over the amortization (where applicable) as appropriate, and are treated
shorter of the unexpired and accumulated impairment as changes in accounting
period of the lease and the losses. Internally generated estimates.
estimated useful life of the intangibles, excluding eligible
assets. development costs are not Intangible assets with indefinite
capitalized, and the related useful lives are not amortized,
• Office Equipment’s are expenditure is reflected in profit but are tested for impairment
depreciated over 5 to 10 and loss in the period in which annually and whenever there is
years. the expenditure is incurred. an indication that the intangible
asset may be impaired. The
• Tools are depreciated over The useful lives of intangible assessment of indefinite life is
a period of 9 years, and assets are assessed as either reviewed annually to determine
dies and moulds over 3 finite or indefinite. whether the indefinite life
years.

345
 continues to be supportable. Darling 2, Valon, and Millefiori is the higher of its fair value
If not, the change in useful life are assessed as intangibles less costs of disposal and its
from indefinite to finite is made having indefinite useful life value in use. An impairment
on a prospective basis. and are not amortized in loss, if any, is recognized in
the Consolidated financial the Consolidated Statement of
Gains or losses arising from statements, but are tested for Profit and Loss in the period
derecognition of an intangible impairment annually. in which the impairment takes
asset are measured as the place. The impairment loss is
difference between the net Residual value is estimated to allocated first to reduce the
disposal proceeds and the be immaterial by management carrying amount of any goodwill
carrying amount of the asset and hence has been considered (if any) allocated to the cash
and are recognized in the at ` 1. generating unit and then to the
statement of profit and loss other assets of the unit, pro-rata
when the asset is derecognized. c. Borrowing Cost based on the carrying amount
of each asset in the unit.
Amortization of other intangible Interest and other borrowing
assets costs attributable to qualifying An impairment loss in respect
Amortization is calculated to assets are capitalized. Other of goodwill is not subsequently
write off the cost of intangible interest and borrowing costs reversed. In respect of other
assets less their estimated are recognized as an expense assets for which impairment
residual values using the in the period in which they are loss has been recognized
straight-line method over their incurred. in prior periods, the Group
estimated useful lives and is reviews at each reporting
generally recognized in profit or d. Impairment of Non-Financial date whether there is any
loss. Assets indication that the loss has
decreased or no longer exists.
The estimated useful lives Goodwill and intangible assets
An impairment loss is reversed
for current and comparative that have an indefinite useful life
if there has been a change in
periods are as follows: are not subject to amortization
the estimates used to determine
and are tested annually for
the recoverable amount. Such
Software licenses 6 years impairment, or more frequently
a reversal is made only to the
Trademarks 10 years if events or changes in
extent that the asset’s carrying
Technical knowhow 10 years circumstances indicate that they
amount does not exceed the
might be impaired. Other non-
carrying amount that would
Trademarks acquired are financial (except for inventories
have been determined, net of
amortized equally over the best and deferred tax assets) assets
depreciation or amortization,
estimate of their useful life not are assessed at the end of each
if no impairment loss had been
exceeding a period of 10 years, reporting date to determine
recognized.
except in the case of Soft & whether there is any indication
Gentle, Non-Valon brands like of impairment. e. Assets held for sale
Pride, Climax, Odonil, Supalite,
Twilite, Lavik, Peurex, Corawwi An impairment loss is Non-current assets or disposal
and Simba brands where the recognized whenever the comprising of assets and
brands are amortized equally carrying value of an asset liabilities are classified as
over a period of 20 years. or a cash-generating unit ‘held for sale’ when all of the
exceeds its recoverable amount. following criteria’s are met (i)
Brands like Goodknight, Hit, Recoverable amount of an decision has been made to sell
SON, Dr Miracle, Darling 1, asset or a cash-generating unit (ii) the assets are available for

346
 Financial Statements | Consolidated

immediate sale in its present trade receivables that do not Financial assets at amortised
condition (iii) the assets are contain a significant financing cost
being actively marketed and component are measured at
(iv) sale has been agreed or transaction price. A financial asset is measured
is expected to be conducted at the amortized cost if both
within 12 months of the Balance Purchases or sales of financial the following conditions are
Sheet date. assets that require delivery met. The asset is held within a
of assets within a time frame business model whose objective
Subsequently, such non-current established by regulation is to hold assets for collecting
assets and disposal groups or convention in the market contractual cash flows, and
classified as held for sale place (regular way trades) are Contractual terms of the asset
are measured at lower of its recognized on the trade date, give rise on specified dates
carrying value and fair value less i.e., the date that the Group to cash flows that are solely
costs to sell. Losses on initial commits to purchase or sell the payments of principal and
classification as held for sale and asset. interest (SPPI) on the principal
subsequent gains and losses on amount outstanding.
re-measurement are recognized Subsequent measurement
in profit and loss. Non-current For the purpose of subsequent After initial measurement, such
assets held for sale are not measurement, financial financial assets are subsequently
depreciated or amortized. assets are classified in four measured at amortized cost
categories on the basis of its using the effective interest
f. Financial Instruments business model for managing rate (EIR) method. Amortized
the financial assets and cost is calculated by taking
A financial instrument is any the contractual cash flow into account any discount or
contract that gives rise to a characteristics of the financial premium on acquisition and fees
financial asset of one entity asset. or costs that are an integral part
and a financial liability or equity of the EIR. The EIR amortization
instrument of another entity. • Financial assets at is included in finance income
Financial instruments also amortized cost, in the profit or loss. The losses
include derivative contracts arising from impairment are
such as foreign currency foreign • Financial assets at fair recognized in the profit or loss.
exchange forward contracts, value through other This category generally applies
interest rate swaps and futures. comprehensive income to trade and other receivables.
(FVTOCI)
Financial assets Financial assets at fair value
Initial recognition and • Financial assets at fair through other comprehensive
measurement value through statement of income (FVTOCI)
All financial assets are profit and loss (FVTPL)
recognized initially at fair value A debt instrument is measured
plus, in the case of financial • Equity instruments at FVOCI if it meets both of the
assets not recorded at fair measured at fair following conditions and is not
value through profit or loss, value through other designated as at FVTPL
transaction costs that are comprehensive income
attributable to the acquisition (FVTOCI) or fair value - the asset is held within
of the financial asset. However, through statement of profit a business model whose
and loss (FVTPL) objective is achieved by

347
 both collecting contractual measured at fair value with all • The contractual rights to
cash flows and selling changes recognized in the profit receive cash flows from
financial assets; and and loss. the financial asset have
expired, or
- the contractual terms of All equity investments within
the financial asset give the scope of Ind-AS 109 are • The Group has transferred
rise on specified dates to measured at fair value. Equity its rights to receive cash
cash flows that are solely instruments which are held flows from the asset or has
payments of principal and for trading are classified as assumed an obligation to
interest on the principal at FVTPL. For all other equity pay the received cash flows
amount outstanding. instruments, the Group decides in full without material
to classify the same either delay to a third party
On initial recognition of an as at FVOCI or FVTPL. The under a ‘pass-through’
equity investment that is not Group makes such election on arrangement; and either (a)
held for trading, the Group may an instrument-by-instrument the Group has transferred
irrevocably elect to present basis. The classification is made substantially all the risks
subsequent changes in the on initial recognition and is and rewards of the asset,
investment’s fair value in OCI irrevocable. or (b) the Group has
(designated as FVOCI – equity neither transferred nor
investment). This election is If the Group decides to retained substantially
made on an investment-by- classify an equity instrument all the risks and rewards
investment basis. as at FVOCI, then all fair value of the asset, but has
changes on the instrument, transferred control of the
Financial assets at fair value excluding dividends, are asset. When the Group
through profit and loss recognized in the other has transferred its rights to
(FVTPL) comprehensive income. There receive cash flows from an
is no recycling of the amounts asset or has entered into a
A financial asset, which does from other comprehensive pass-through arrangement,
not meet the criteria for income to profit and loss, even it evaluates if and to what
categorization as at amortized on sale of investment. However, extent it has retained
cost or as FVOCI, is classified the Group may transfer the the risks and rewards of
as at FVTPL. This includes all cumulative gain or loss within ownership. When it has
derivative financial assets. equity. neither transferred nor
retained substantially all
In addition, the Group may, at Equity instruments included of the risks and rewards of
initial recognition, irrevocably within the FVTPL category are the asset, nor transferred
designate a financial asset, measured at fair value with all control of the asset,
which otherwise meets changes recognized in the profit the Group continues to
amortized cost or FVOCI and loss. recognize the transferred
criteria, as at FVTPL. However,
asset to the extent of
such election is allowed only if Derecognition the Group’s continuing
doing so reduces or eliminates A financial asset (or, where involvement. In that case,
a measurement or recognition applicable, a part of a financial the Group also recognizes
inconsistency (referred to as asset or a part of a group an associated liability. The
‘accounting mismatch’). of similar financial assets) is transferred asset and the
primarily derecognized (i.e. associated liability are
Financial assets included removed from the Group’s measured on a basis that
within the FVTPL category are balance sheet) when: reflects the rights and

348
 Financial Statements | Consolidated

obligations that the Group classified at FVTPL if it is obligation under the liability
has retained. Continuing classified as held for trading is discharged or cancelled or
involvement that takes or as derivatives designated expires. When an existing
the form of a guarantee as hedging instruments in an financial liability is replaced by
over the transferred asset effective hedge, as appropriate. another from the same lender
is measured at the lower Such liabilities, including on substantially different terms,
of the original carrying derivatives that are liabilities, or the terms of an existing
amount of the asset and shall be subsequently measured liability are substantially
the maximum amount of at fair value and net gains and modified, such an exchange or
consideration that the losses including any interest modification is treated as the
Group could be required to expenses are recognized in derecognition of the original
repay. profit or loss. liability and the recognition of
a new liability. The difference
Impairment of financial assets In the case of loans and in the respective carrying
The Group assesses on a borrowings and payables, these amounts is recognized in the
forward looking basis the are measured at amortized cost Consolidated statement of
Expected Credit Losses and recorded, net of directly profit and loss.
(ECL) associated with its attributable and incremental
financial assets that are debt Financial guarantee contracts
transaction cost. Gains
instruments and are carried at Financial guarantee contracts
and losses are recognized
amortized cost. The impairment issued by the Group are those
in Consolidated statement
methodology and applied contracts that require specified
of profit and loss when the
depends on whether there has payments to be made to
liabilities are derecognized
been a significant increase in
as well as through the EIR reimburse the holder for a loss
credit risk.
amortization process. it incurs because the specified
debtor fails to make a payment
For trade receivables, the Group
Amortized cost is calculated when due in accordance with
applies a simplified approach.
by taking into account any the terms of a debt instrument.
It recognizes impairment loss
discount or premium on Financial guarantee contracts
allowance based on lifetime
acquisition and fees or costs are recognized initially as a
ECLs at each reporting date,
that are an integral part of the liability at fair value, adjusted
right from its initial recognition.
EIR. The EIR amortization is for transaction costs that are
Trade receivables are tested for
included as finance costs in directly attributable to the
impairment on a specific basis
the Consolidated statement of issuance of the guarantee.
after considering the sanctioned
profit and loss. Subsequently, the liability is
credit limits, security deposit
measured at the higher of
collected etc. and expectations
The Group’s financial liabilities the amount of loss allowance
about future cash flows.
include trade and other determined as per impairment
payables, loans and borrowings requirements of Ind-AS 109 and
Financial liabilities
including bank overdrafts, the amount recognized less
Initial recognition and
financial guarantee contracts cumulative amortization.
measurement
Financial liabilities are classified, and derivative financial
instruments. Offsetting of financial
at initial recognition, as financial
instruments
liabilities at fair value through
Derecognition Financial assets and financial
profit or loss or at amortized
A financial liability is liabilities are offset and the
cost. A financial liability is
derecognized when the net amount is reported in

349
 the balance sheet if there is At the inception of a hedge to the cumulative change in
a currently enforceable legal relationship, the Group formally fair value of the hedged item,
right to offset the recognized designates and documents the determined on a present value
amounts and there is an hedge relationship to which basis, from inception of the
intention to settle on a net the Group wishes to apply hedge. Any ineffective portion
basis, or to realize the assets hedge accounting and the risk of changes in the fair value of
and settle the liabilities management objective and the derivative is recognized
simultaneously. strategy for undertaking the immediately in profit or loss.
hedge. The documentation
g. Derivative financial includes the Group risk If a hedge no longer meets the
instruments and hedge management objective and criteria for hedge accounting
accounting strategy for undertaking the or the hedging instrument is
hedge, the hedging economic sold, expires, is terminated or is
The Group uses derivative relationship the hedged item exercised, the hedge accounting
financial instruments, such as or transaction the nature of the is discontinued prospectively.
forward currency contracts and risk being hedged, hedge ration When hedge accounting for a
cross currency interest rate and how the entity will assess cash flow hedge is discontinued,
swaps, to hedge its foreign the effectiveness of changes in the amount the has been
currency risks and interest the hedging instrument’s fair accumulated in other equity
rate risks respectively. Such value in offsetting the exposure remains there until is reclassified
derivative financial instruments to changes in hedged item’s fair to profit and loss account in the
are initially recognized at fair value or cash flows attributable same period or periods as the
value on the date on which a to the hedged risk. Such hedges hedged expected future cash
derivative contract is entered are expected to be highly flows affect profit or loss. If the
into and are subsequently effective in achieving offsetting hedged future cash flows are no
re-measured at fair value. changes in fair value or cash longer expected to occur, then
Derivatives are carried as flows and are assessed on an the amounts that have been
financial assets when the fair ongoing basis to determine accumulated in other equity
value is positive and as financial that they actually have been are immediately reclassified to
liabilities when the fair value is highly effective throughout the profit or loss.
negative. financial reporting periods for
which they are designated. h. Inventories
Any gains or losses arising from
changes in the fair value of Cash flow hedges Inventories are valued at lower
derivatives are taken directly to When a derivative is designed of cost and net realizable value.
profit and loss, except for the as a cash flow hedging Net realizable value is the
effective portion of cash flow instrument, the effective portion estimated selling price in the
hedges, which is recognized in of changes in the fair value of ordinary course of business, less
other comprehensive income the derivative is recognized in estimated costs of completion
and later reclassified to profit other comprehensive income and the estimated costs
and loss when the hedged and accumulated in the other necessary to make the sale.
item affects profit or loss or equity under ‘effective portion Costs are computed on the
treated as basis adjustment if of cash flow hedges’. The weighted average basis and are
a hedged forecast transaction effective portion of changes in net of recoverable tax credits.
subsequently results in the the fair value of the derivative
recognition of a non-financial that is recognized in other Raw materials, packing materials
asset or non-financial liability. comprehensive income is limited and Stores: Costs includes

350
 Financial Statements | Consolidated

cost of purchase and other For the purpose of the events and whose existence
costs incurred in bringing each consolidated statement of will be confirmed only by the
product to its present location cash flows, cash and cash occurrence or non-occurrence
and condition. equivalents as defined above of one or more uncertain
is net of outstanding cash future events not wholly within
Finished goods and work- credits repayable on demand, the control of the entity.
in-progress: In the case of as they are considered an Contingent Assets are not
manufactured inventories and integral part of the Group’s cash recognized till the realization
work-in-progress, cost includes management. of the income is virtually
all costs of purchases, an certain. However, the same
appropriate share of production j. Provisions, Contingent are disclosed in the financial
overheads based on normal Liabilities and Contingent statements where an inflow of
operating capacity and other Assets economic benefits is probable.
costs incurred in bringing each
product to its present location A provision is recognized when k. Revenue Recognition
and condition. the enterprise has a present
obligation (legal or constructive) Revenue is recognized upon
Provision is made for cost as a result of a past event and transfer of control of promised
of obsolescence and other it is probable that an outflow of goods to customers for
anticipated losses, whenever resources embodying economic an amount specified in the
considered necessary. benefits will be required to customer contract that reflects
settle the obligation, in respect the consideration expected to
If payment for inventory is of which a reliable estimate can be received in exchange for
deferred beyond normal credit be made. These are reviewed those goods. Revenue excludes
terms, then cost is determined at each balance sheet date and taxes or duties collected on
by discounting the future adjusted to reflect the current behalf of the government.
cash flows at an interest rate management estimates.
determined with reference to Sale of goods
market rates. The difference If the effect of the time value Revenue from sale of goods
between the total cost and of money is material, provisions is recognized when control of
the deemed cost is recognized are determined by discounting goods are transferred to the
as interest expense over the the expected future cash flows buyer which is generally on
period of financing under the specific to the liability. The delivery for domestic sales and
effective interest method. unwinding of the discount is on dispatch/delivery for export
recognized as finance cost. sales.
i. Cash and Cash Equivalents
Contingent Liabilities are The Group recognizes revenues
Cash and cash equivalents in disclosed in respect of possible on the sale of products, net of
the balance sheet includes cash obligations that arise from past returns, discounts, amounts
at bank and on hand, deposits events, but their existence is collected on behalf of third
held at call with financial confirmed by the occurrence or parties (such as GST) and
institutions, other short term non-occurrence of one or more payments or other consideration
highly liquid investments, with uncertain future events not given to the customer that has
original maturities less than wholly within the control of the impacted the pricing of the
three months which are readily Group. transaction.
convertible into cash and which
are subject to insignificant risk A contingent asset is a possible Accumulated experience is
of changes in value. asset that arises from past used to estimate and accrue

351
 for the discounts (using the which the Group’s right to The grant-date fair value
most likely method) and receive payment is established. of equity-settled share-
returns considering the terms based payment granted to
of the underlying schemes and l. Employee Benefit employees is recognized
agreements with the customers. as an expense, with a
No element of financing is i. Short-term Employee corresponding increase in
deemed present as the sales are benefits equity, over the vesting
made with normal credit days Liabilities for wages and period of the awards. The
consistent with market practice. salaries including non- amount recognized as
A liability is recognized where monetary benefits that are an expense is adjusted
payments are received from expected to be settled to reflect the number
customers before transferring wholly within twelve of awards for which
control of the goods months after the end the related service and
of the period in which non-market performance
Royalty & Technical Fees the employees render conditions are expected
Royalty is recognized on accrual the related service are to be met, such that
basis in accordance with the classified as short term the amount ultimately
substance of the relevant employee benefits and are recognized is based on
agreement. recognized as an expense the number of awards
in the Consolidated that meet the related
Interest income Statement of Profit and service and non-market
For all debt instruments Loss as the related service performance conditions
measured at amortized cost, is provided. A liability is at the vesting date. For
interest income is recorded recognized for the amount share-based payment
using the Effective Interest expected to be paid if the awards with market
Rate (EIR). EIR is the rate Group has a present legal performance conditions
which exactly discounts the or constructive obligation and non-vesting conditions,
estimated future cash receipts to pay this amount as the grant-date fair value of
over the expected life of the a result of past service the share-based payment
financial instrument to the provided by the employee is measured to reflect such
gross carrying amount of the and the obligation can be conditions and there is
financial asset. When calculating estimated reliably. no true-up for differences
the EIR the Group estimates between expected and
the expected cash flows by ii. Share-based payments actual outcomes.
considering all the contractual The cost of equity settled
terms of the financial instrument transactions is determined The dilutive effect of
(for example, prepayments, by the fair value at the outstanding options is
extensions, call and similar grant date. The fair value reflected as additional
options). The expected credit of the employee share share dilution in the
losses are considered if the options is based on the computation of diluted
credit risk on that financial Black Scholes model for earnings per share
instrument has increased time-based options and
significantly since initial a combination of Monte- iii. Post-Employment
recognition. Carlo Simulation and Black- Benefits
Scholes Merton model Defined Contribution Plans
Dividend income for performance-based Payments made to a
Dividends are recognized in options. defined contribution plan
profit or loss on the date on such as Provident Fund

352
 Financial Statements | Consolidated

maintained with Regional Contributions which form of any future refunds

Provident Fund Office and are made to a Trust from the plan or reductions
Superannuation Fund are administered by the in future contributions to
charged as an expense Company are considered the plan. To calculate the
in the Consolidated as Defined Benefit Plans. present value of economic
Statement of Profit and The interest rate payable benefits, consideration is
Loss as they fall due. to the members of the given to any applicable
Contributions to defined Trust shall not be lower minimum funding
contribution schemes than the statutory rate of requirements.
such as employees’ state interest declared by the
insurance, labour welfare Central Government under Re-measurement of the
fund, superannuation the Employees Provident net defined benefit liability,
scheme, employee pension Funds and Miscellaneous which comprise actuarial
scheme etc. are charged Provisions Act, 1952 or as gains and losses, the return
as an expense based on applicable in the respective on plan assets (excluding
the amount of contribution geography and shortfall, interest) and the effect of
required to be made as and if any, shall be made good the asset ceiling (if any,
when services are rendered by the Company. The excluding interest), are
by the employees. The Company’s liability towards recognized immediately
above benefits are interest shortfall, if any, is in the balance sheet with
classified as Defined actuarially determined at a corresponding debit
Contribution Schemes as the year end. or credit to retained
the Group has no further earnings through other
defined obligations beyond The Group’s net obligation comprehensive income in
the monthly contributions. in respect of defined the period in which they
benefit plans is calculated occur. Re-measurements
Defined Benefit Plans separately for each plan are not reclassified to
Gratuity Fund by estimating the amount profit or loss in subsequent
The Company has an of future benefit that periods.
obligation towards employees have earned
gratuity, a defined benefit in the current and prior Net interest expense
retirement plan covering periods, discounting that (income) on the net
eligible employees. amount and deducting defined liability (assets)
Gratuity is payable to all the fair value of any plan is computed by applying
eligible employees on assets. the discount rate, used to
death or on separation/ measure the net defined
termination in terms of The calculation of defined liability (asset), to the net
the provisions of the benefit obligations is defined liability (asset) at
payment of the Gratuity performed by a qualified the start of the financial
(Amendment) Act, 1997 actuary using the projected year after taking into
or as per the Company’s unit credit method. When account any changes as
scheme whichever is the calculation results in a result of contribution
more beneficial to the a potential asset for the and benefit payments
employees. Group, the recognized during the year. Net
asset is limited to the interest expense and
Provident Fund present value of economic other expenses related to
Provident Fund benefits available in the defined benefit plans are

353
 recognized in profit or loss. m. Leases use the asset or the Group
designed the asset in a way
When the benefits of a At the inception it is assessed, that predetermines how
plan are changed or when whether a contract is a lease or and for what purpose it will
a plan is curtailed, the contains a lease. A contract is be used.
resulting change in benefit a lease or contains a lease if it
that relates to past service conveys the right to control the At the commencement or
or the gain or loss on use of an identified asset, for a modification of a contract,
curtailment is recognized period of time, in exchange for that contains a lease
immediately in profit or consideration. component, the Group
loss. The Group recognizes allocates the consideration
gains and losses on the To assess whether a contract in the contract, to each
settlement of a defined conveys the right to control the lease component, on
benefit plan when the use of an identified asset, the the basis of its relative
settlement occurs Group assesses whether the standalone prices. For
contract involves the use of an leases of property, it is
iv. Other Long Term identified asset. Use may be elected not to separate
Employee Benefits specified explicitly or implicitly non-lease components and
The liabilities for earned account for the lease and
leaves and other long term • Use should be physically non-lease components as a
incentives are not expected distinct or represent single lease component.
to be settled wholly within substantially all of the
12 months after the end capacity of a physically As a Lessee:
of the period in which distinct asset. The Group recognizes a
the employees render right-of-use asset and a
the related service. They • If the supplier has a lease liability at the lease
are therefore measured substantive substitution commencement date.
as the present value of right, then the asset is not
expected future payments identified. Right-of-use asset (ROU):
to be made in respect The right-of-use asset is
of services provided by • The Group has the right to initially measured at cost.
employees upto the end of obtain substantially all of Cost comprises of the
the reporting period using the economic benefits from initial amount of the lease
the projected unit credit use of the asset throughout liability adjusted for any
method based on actuarial the period of use. lease payments made at or
valuation. before the commencement
• The Group has the right to date, any initial direct costs
Actuarial gains and direct the use of the asset. incurred by the lessee,
losses in respect of such an estimate of costs to
• In cases where the
benefits are charged to the dismantle and remove
usage of the asset is
Consolidated Statement the underlying asset or
predetermined the right
Profit or Loss account in to restore the underlying
to direct the use of the
the period in which they asset or the site on which
asset is determined when
arise. it is located less any lease
the Group has the right to incentives received.

354
 Financial Statements | Consolidated

After the commencement rate is determined based to be payable under a

date, a lessee shall on entity’s borrowing rate residual value guarantee
measure the right-of-use adjusted for terms of the and a change in future
asset applying cost model, lease and type of the asset lease payments arising
which is Cost less any leased. from change in an index or
accumulated depreciation rate.
and any accumulated Lease payments included
impairment losses and also in the measurement of the When the lease liability is
adjusted for certain re- lease liability comprises re-measured corresponding
measurements of the lease of fixed payments adjustment is made to the
liability. (including in substance carrying amount of the
fixed payments), variable right-of-use asset. If the
Right-of-use asset is lease payments that carrying amount of the
depreciated using depends on an index or right-of-use asset has been
straight-line method a rate, initially measured reduced to zero it will be
from the commencement using the index or rate recorded in statement of
date to the end of the at the commencement profit and loss.
lease term. If the lease date, amount expected
transfers the ownership to be payable under a Right-of-use asset and
of the underlying asset residual value guarantee, lease liabilities are
to the Group at the end the exercise price under presented separately in the
of the lease term or the a purchase option that balance sheet.
cost of the right-of-use the Group is reasonably
asset reflects the Group certain to exercise, lease The Group has elected not
will exercise the purchase payments in an optional to recognize right-of-use
option, ROU will be renewal period if the assets and lease liabilities
depreciated over the Group is reasonably certain for short term leases. The
useful life of the underlying to exercise an extension lease payments associated
asset, which is determined option, and penalties for with these leases are
based on the same basis early termination of a recognized as an expense
as property, plant and lease unless the Group is on a straight-line basis over
equipment. reasonably certain not to the lease term.
terminate early.
Lease liability: Lessor
Lease liability is initially Lease liability is measured At the commencement or
measured at the present at amortised cost using modification of a contract,
value of lease payments the effective interest that contains a lease
that are not paid at the method. Lease liability is component, the Group
commencement date. re-measured when there is allocates the consideration
Discounting is done a change in the lease term, in the contract, to each
using the implicit interest a change in its assessment lease component, on
rate in the lease, if that of whether it will exercise the basis of its relative
rate cannot be readily a purchase, extension or standalone prices.
determined, then using termination option or a
the Group’s incremental revised in-substance fixed At the inception of the

borrowing rate. lease payment, a change lease, it is determined

Incremental borrowing in the amounts expected whether it is a finance lease

355
 or an operating lease. If the profit or loss for the year profit will be available to allow
lease transfers substantially and any adjustment to the the benefit of part or all of that
all of the risks and rewards tax payable or recoverable in deferred tax asset to be utilized.
incidental to ownership respect of previous years. It
of the underlying asset, is measured using tax rates Unrecognized deferred tax
then it is a financial lease, enacted or substantively assets are reassessed at each
otherwise it is an operating enacted by the end of the reporting date and recognized
lease. reporting period. Management to the extent that it has become
periodically evaluates positions probable that future taxable
If the lease arrangement taken in tax returns with respect profits will be available against
contains lease and non- to situations in which applicable which they can be recovered.
lease components, then tax regulation is subject to
the consideration in the interpretations and establishes Deferred tax is measured at the
contract is allocated using provisions where appropriate. tax rates that are expected to be
the principles of IND AS applied to temporary differences
115. The Group tests for • Current tax assets and when they reverse, using tax
the impairment losses at liabilities are offset only rates enacted or substantively
the year end. Payment if, the Group has a legally enacted by the end of the
received under operating enforceable right to set off reporting period.
lease is recognized as the recognized amounts;
income on straight line and The measurement of deferred
basis, over the lease term. tax assets and liabilities reflects
• Intends either to settle on the tax consequences that
The accounting policies a net basis, or to realize would follow from the manner
applicable to the Group as the asset and settle the in which the Group expects, at
a lessor, in the comparative liability simultaneously. the reporting date, to recover or
period, were not different settle the carrying amount of its
from IND AS 116. Deferred Tax assets and liabilities.
Deferred Income tax is
n. Income Tax recognized in respect of Deferred tax liabilities are not
temporary difference between recognized for temporary
Income tax expense comprises the carrying amount of assets and differences between the
current tax expense and liabilities for financial reporting carrying amount and tax base
deferred tax expense / income. purpose and the amount of investments in subsidiaries,
It is recognized in profit or considered for taxation purpose. branches, associates and interest
loss except to the extent that in joint arrangements where
it relates to items recognized Deferred tax assets are the Group is able to control the
directly in equity or in other recognized for unused tax timing of the reversal of the
comprehensive income. In losses, unused tax credits and temporary differences and it is
which case, the tax is also deductible temporary differences probable that the differences will
recognized directly in equity or to the extent that it is probable not reverse in the foreseeable
other comprehensive income, that future taxable profits will future
respectively. be available against which they
can be utilized. Deferred tax Deferred tax assets and
Current Tax assets are reviewed at each liabilities are offset only if:
Current tax comprises the reporting date and are reduced
expected tax payable or to the extent that it is no longer i. the entity has a legally
recoverable on the taxable probable that sufficient taxable enforceable right to set off

356
 Financial Statements | Consolidated

current tax assets against date of the transaction. loss is recognized in other
current tax liabilities; and comprehensive income as
Monetary assets and required by other Ind AS,
ii. the deferred tax assets and liabilities denominated the exchange component
the deferred tax liabilities in foreign currencies of that gain or loss is
relate to income taxes are translated into the also recognized in other
levied by the same taxation functional currency at comprehensive income
authority on the same the exchange rate at the
taxable entity. reporting date. Non- Group Companies
monetary items that On consolidation, the
Deferred tax asset / liabilities are measured based on assets and liabilities of
in respect of temporary historical cost in a foreign foreign operations are
differences which originate and currency are translated translated into INR at
reverse during the tax holiday using the exchange rate the rate of exchange
period are not recognized. at the date of the initial prevailing at the reporting
Deferred tax assets / liabilities transaction. Non-monetary date and their statements
in respect of temporary items that are measured of profit and loss are
differences that originate during at fair value in a foreign translated at average
the tax holiday period but currency are translated rate during the year. The
reverse after the tax holiday using the exchange rate at exchange differences
period are recognized. the date the fair value is arising on translation
determined. for consolidation are
Minimum Alternate Tax (MAT) recognized in other
credit is recognized as an asset Exchange differences comprehensive income
only when and to the extent arising on the settlement and accumulated in
there is a convincing evidence or translation of monetary equity under the heading
that the Group will pay normal items are recognized Exchange differences on
tax during the specified period. in profit or loss in the translating the financial
year in which they arise statements of foreign
o. Foreign Currency Transactions except for the qualifying operations.
and Translation cash flow hedge, which
are recognized in other When a foreign operation
i. Functional and comprehensive income to is disposed of in its
Presentation currency the extent that the hedges entirety or partially such
The Consolidated financial are effective. that control, significant
statements are prepared in influence or joint control is
Indian Rupees (INR “` “) Tax charges and credits lost, the cumulative amount
which is also the Parent attributable to exchange of exchange differences
Company’s functional differences on those related to that foreign
currency. monetary items are operations recognized in
also recorded in other Exchange differences on
ii. Transactions and balances comprehensive income, translating the financial
qualifying cash flow hedge statements of foreign
Foreign currency to the extent that the operations is reclassified
transactions are recorded hedges are effective. to Consolidated Statement
on initial recognition in the
of Profit and Loss as part
functional currency using In respect of non-monetary of the gain or loss on
the exchange rate at the items, where a gain or disposal.

357
 Any goodwill arising on longer at the discretion of AS-108 ‘Operating Segments’
the acquisition of a foreign the Group on or before the for allocating resources and
operation and any fair end of the reporting period. assessing performance.
value adjustments to the A corresponding amount is The Group has identified
carrying amount of assets recognized directly in equity. geographical segments as its
and liabilities arising on reporting segments based on
the acquisition are treated r. Earnings Per Share the CODM approach.
as assets and liabilities of
the foreign operation and Basic Earnings per share is t. Exceptional Items
translated at the closing calculated by dividing the
rate of exchange at the profit or loss for the period In certain cases when, the size,
reporting date. attributable to the equity type or incidence of an item of
shareholders by the weighted income or expenses, pertaining
p. Government grants average number of equity to the ordinary activities of the
shares outstanding during the Group is such that its disclosure
Government grants, including period. improves the understanding
non-monetary grants at fair of the performance of the
value are recognized when there For the purpose of calculating Group, such income or expense
is reasonable assurance that the diluted earnings per share, the is classified as an exceptional
grants will be received and the profit or loss for the period item and accordingly, disclosed
Group will comply with all the attributable to the equity in the notes accompanying
attached conditions. shareholders and the weighted the Consolidated financial
average number of equity statements.
When the grant relates to an shares outstanding during the
expense item, it is recognized period is adjusted to take into 2.5 Standards issued but not yet
as income on a systematic basis account: effective
over the periods necessary
to match them with the costs • The after income tax The Ministry of Corporate
that they are intended to effect of interest and other Affairs (‘MCA’) notifies new
compensate. financing costs associated standards or amendments to
with dilutive potential the existing standards under
Government grants relating to equity shares, and Companies (Indian Accounting
purchase of property, plant and Standards) Amendment Rules
equipment are included in non- • Weighted average number as issued from time to time.
current liabilities as deferred of additional equity shares ON March 31, 2023 MCA
income and are credited to the that would have been amended the Companies (Indian
profit and loss on a straight-line outstanding assuming the Accounting Standards) Rules,
basis over the expected lives of conversion of all dilutive 2015 by issuing the Companies
the related assets. potential equity shares. (Indian Accounting Standards)
Amendment Rules, 2023,
q. Dividend s. Segment Reporting applicable from April 1, 2023, as
below:
The Group recognizes a liability Operating segments are
for any dividend declared but reported in a manner A. Ind AS 1 – Presentation
not distributed at the end of consistent with the internal of Financial Statements
the reporting period, when reporting provided to the The amendment require
the distribution is authorized chief operating decision maker companies to disclose
and the distribution is no (CODM) as defined in Ind their material accounting

358
 Financial Statements | Consolidated

policies rather than their and decommissioning errors The amendments

significant accounting obligations. The will help entities to
policies. Accounting policy amendments narrowed the distinguish between
information, together scope of the recognition accounting policies and
with other information, exemption in paragraphs accounting estimates.
is material when it can 15 and 24 of Ind AS 12 The definition of a change
reasonably be expected (recognition exemption) in accounting estimates
to influence decisions so that it no longer applies has been replaced with a
of primary users of to transactions that, on definition of accounting
general-purpose financial initial recognition, give estimates. Under the new
statements. The Group rise to equal taxable and definition, accounting
does not expect this deductible temporary estimates are “monetary
amendment to have any differences. The Group amounts in financial
significant impact in its does not expect this statements to be measured
consolidated financial amendment to have any in a way that involves
statements. significant impact in its measurement uncertainty.
consolidated financial The Group does not expect
B. Ind AS 12, Income Taxes statements. this amendment to have
The amendment clarify any significant impact in
how companies account C. Ind AS 8, Accounting its consolidated financial
for deferred tax on Policies, Changes in statements.
transactions such as leases Accounting estimates and

359
360
Note 3: Property, Plant and Equipment
` Crore

Owned Assets Assets given on lease

PARTICULARS Furniture Total

Freehold Leasehold Leasehold Plant and Office
Buildings and Vehicles Computers Building Vehicles
Land Land Improvements Equipment Equipment
Fixtures

Year ended March 31, 2023

Gross carrying amount

Opening gross carrying amount 61.33 85.62 571.09 56.73 939.12 35.79 63.68 41.39 74.62 90.26 1.53 2,021.16

Additions - - 26.16 12.73 248.76 1.93 10.30 9.21 11.92 - - 321.01

Disposals - - (0.55) (0.57) (19.58) (0.33) (9.36) (2.00) (9.60) - (0.08) (42.07)

Hyperinflationary adjustment # 0.03 - 5.80 - 2.00 (1.41) 0.15 4.56 2.64 - - 13.77

Other Adjustments (consist of

exchange difference on translation of 1.41 (3.03) 12.13 0.02 3.28 (1.35) (2.95) (2.10) (1.75) - 0.06 5.72
foreign operations)

Closing Gross Carrying Amount 62.77 82.59 614.63 68.91 1,173.58 34.63 61.82 51.06 77.83 90.26 1.51 2,319.59

Accumulated Depreciation

Opening Accumulated Depreciation - 8.83 108.70 43.77 449.04 15.53 32.94 23.85 54.73 7.33 1.53 746.25

Depreciation charge during the year - 1.12 20.41 7.76 103.10 3.67 10.40 4.35 10.47 - - 161.28

Additional depreciation due to

- - 0.97 - 0.62 0.35 0.15 0.72 0.76 - - 3.57
hyperinflation #

Disposals - - (0.21) (0.50) (15.47) (0.30) (7.95) (1.69) (9.45) - (0.08) (35.65)

Hyperinflationary adjustment # - - 1.36 - (0.11) (1.81) (0.16) 0.35 2.34 - - 1.97

Other Adjustments (consist of

exchange difference on translation of - (0.21) 3.84 0.53 4.35 (0.51) (1.64) (0.73) (0.94) - 0.08 4.77
foreign operations)

Closing Accumulated Depreciation - 9.74 135.07 51.56 541.53 16.93 33.74 26.85 57.91 7.33 1.53 882.19

Net Carrying Amount 62.77 72.85 479.56 17.35 632.05 17.70 28.08 24.21 19.92 82.93 (0.02) 1,437.40
 ` Crore

Owned Assets Assets given on lease

PARTICULARS Furniture Total

Freehold Leasehold Leasehold Plant and Office
Buildings and Vehicles Computers Building Vehicles
Land Land Improvements Equipment Equipment
Fixtures

Year ended March 31, 2022

Gross carrying amount

Opening gross carrying amount 59.02 85.25 526.53 52.30 806.74 36.97 58.27 36.12 63.65 90.26 1.83 1,816.94

Additions - 0.02 20.08 6.92 122.62 3.41 10.05 3.40 14.52 - - 181.02

Disposals - - (1.49) (0.49) (15.38) (6.62) (6.02) (0.42) (7.55) - (0.40) (38.37)
Financial Statements | Consolidated

Hyperinflationary Adjustments # 0.04 - 6.96 - 7.47 1.61 0.14 2.31 3.35 - - 21.88

Other Adjustments (consist of

exchange difference on translation of 2.27 0.35 19.01 (2.00) 17.67 0.42 1.24 (0.02) 0.65 - 0.10 39.69
foreign operations)

Closing Gross Carrying Amount 61.33 85.62 571.09 56.73 939.12 35.79 63.68 41.39 74.62 90.26 1.53 2,021.16

Accumulated Depreciation

Opening Accumulated Depreciation - 7.66 83.63 35.98 360.77 16.79 25.82 18.11 48.80 7.33 1.83 606.72

Depreciation charge during the year - 1.11 20.77 6.42 83.41 3.48 11.13 4.29 10.47 - - 141.08

Additional depreciation due to

- - 0.77 - 1.32 0.33 (0.11) 0.54 (0.09) - - 2.76
hyperinflation #

Disposals - - (0.42) (0.49) (10.18) (6.57) (5.11) (0.42) (7.39) - (0.40) (30.98)

Hyperinflationary Adjustments# - - 1.41 - 5.71 1.01 0.26 1.30 2.33 - - 12.02

Other Adjustments (consist of

exchange difference on translation of - 0.06 2.54 1.86 8.01 0.49 0.95 0.03 0.61 - 0.10 14.65
foreign operations)

Closing Accumulated Depreciation - 8.83 108.70 43.77 449.04 15.53 32.94 23.85 54.73 7.33 1.53 746.25

Net Carrying Amount 61.33 76.79 462.39 12.96 490.08 20.26 30.74 17.54 19.89 82.93 - 1,274.91

Refer Note 54 for property, plant and equipment pledged as security against borrowings.

# Ind AS 29 “Financial Reporting in Hyperinflationary Economies’’ has been applied to the Group’s entities with a functional currency of Argentina Peso. Ind AS 21 “The
Effects of Changes in Foreign Exchange Rates” has been applied to translate the financial statements of such entities for consolidation.

361
 Note 4 : Capital Work-In-Progress
` Crore
Ageing as at March 31, 2023 Amount
Less than 1 More than 3 Total
Particulars 1-2 years 2-3 years
year years
Projects in progress 16.85 0.46 0.50 0.92 18.73
Projects temporarily suspended 0.07 - - - 0.07
CWIP -assets not categorised as projects 22.81
Total 16.92 0.46 0.50 0.92 41.61
Ageing as at March 31, 2022 Amount
Less than 1 More than 3 Total
Particulars 1-2 years 2-3 years
year years
Projects in progress 67.91 2.07 0.40 0.52 70.90
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects - - - - 43.85
Total 67.91 2.07 0.40 0.52 114.75

` Crore
Overdue CWIP projects- expected period of completion as at
To be completed in
March 31, 2023
Less than 1 More than 3
Particulars 1-2 years 2-3 years
year years
Project 1 1.13

` Crore
Overdue CWIP projects- expected period of completion as at
To be completed in
March 31, 2022
Less than 1 More than 3
Particulars 1-2 years 2-3 years
year years
Project 1 0.86
Project 2 7.73

362
 Financial Statements | Consolidated

Note 5 : Leases
As a lessee:
Right-of-Use assets ` Crore
Plant and
Building Vehicles Total
Equipment
Recognised at April 1, 2022 93.74 2.88 1.83 98.45
Additions/ (deletions) during the year 24.88 2.64 12.63 40.15
Depreciation charge for the year (37.64) (1.34) (2.53) (41.51)
Exchange difference (0.49) 0.26 (0.19) (0.42)
Balance as at March 31, 2023 80.49 4.44 11.74 96.67
Recognised at April 1, 2021 88.04 2.03 1.06 91.13
Additions/ (deletions) during the year 38.38 1.68 1.08 41.14
Depreciation charge for the year (32.97) (0.94) (0.45) (34.36)
Exchange difference 0.29 0.11 0.14 0.54
Balance as at March 31, 2022 93.74 2.88 1.83 98.45

Maturity analysis - contractual undiscounted cash flows: ` Crore

As at As at
Lease liabilities
March 31, 2023 March 31, 2022
Less than one year 44.12 37.30
One to three years 56.61 62.18
Three to five years 8.98 7.36
More than five years 0.35 1.05
Total undiscounted lease liabilities 110.06 107.89

` Crore
As at As at
Lease liabilities (discounted value)
March 31, 2023 March 31, 2022
Non-current 57.61 64.44
Current 38.01 32.24
Total 95.62 96.68

Amounts recognized in statement of profit and loss: ` Crore

As at As at
Particulars
March 31, 2023 March 31, 2022
Expenses relating to short-term leases 57.88 65.35
Expenses relating to low value leases 2.67 1.37
Total 60.55 66.72

As a lessor:
Amounts recognized in statement of profit and loss:

` Crore
Year ended Year ended
Particulars
March 31, 2023 March 31, 2022
Operating lease income 11.30 10.97

363
 ` Crore

Undiscounted lease payments to be received after March 31, 2023 March 31, 2022
Less than one year 10.86 10.86
One to three years 16.65 22.63
Three years to five years - -
Total undiscounted lease payments 27.51 33.49

Note 6 : Intangible Assets

` Crore

Goodwill Other Intangible assets Total Other

PARTICULARS (Refer note Trademarks Computer Technical Intangible
52) and Brands * Software Knowhow assets

Year ended March 31, 2023

Opening Gross carrying amount 5,408.42 2,674.47 144.14 0.10 2,818.71
Additions - 0.55 10.26 - 10.81
Disposals - (1.18) (15.66) - (16.84)
Hyperinflationary adjustment # - 2.55 4.75 - 7.30
Other Adjustments (consist of exchange
448.08 154.25 1.45 - 155.70
difference on translation of foreign operations)
Closing Gross Carrying Amount 5,856.50 2,830.64 144.94 0.10 2,975.68
Accumulated Amortisation/ Impairment
Opening Accumulated Amortisation/ Impairment 31.63 233.83 115.63 0.10 349.56
Amortization recognised for the year - 15.86 13.30 - 29.16
Additional amortisation due to hyperinflation # - 0.44 0.33 - 0.77
Disposals - (1.18) (15.66) - (16.84)
Impairment (Refer Note 52) - 6.03 - - 6.03
Hyperinflationary adjustment # - 2.38 4.11 - 6.49
Other Adjustments (consist of exchange
2.62 21.69 1.48 - 23.17
difference on translation of foreign operations)
Closing Accumulated Amortisation/
34.25 279.05 119.19 0.10 398.34
Impairment

Net Carrying Amount 5,822.25 2,551.59 25.75 - 2,577.34

364
 Financial Statements | Consolidated

` Crore

Goodwill Other Intangible assets Total Other

PARTICULARS (Refer note Trademarks Computer Technical Intangible
52) and Brands * Software Knowhow assets

Year ended March 31, 2022

Opening Gross carrying amount 5,160.54 2,592.26 129.80 0.10 2,722.16
Additions - 0.15 8.80 - 8.95
Disposals - (9.32) (1.01) - (10.33)
Hyperinflationary adjustment # - 3.42 4.37 - 7.79
Other Adjustments (consist of exchange
247.88 87.96 2.18 - 90.14
difference on translation of foreign operations)
Closing Gross Carrying Amount 5,408.42 2,674.47 144.14 0.10 2,818.71
Accumulated Amortisation/ Impairment
Opening Accumulated Amortisation 30.69 153.67 94.82 0.10 248.59
Amortisation recognised for the year - 15.10 14.86 - 29.96
Additional amortisation due to hyperinflation # - 0.36 1.41 1.77
Disposals - (2.77) (0.88) - (3.65)
Impairment (Refer Note 52) - 53.64 - - 53.64
Hyperinflationary adjustment # - 3.03 3.51 - 6.54
Other Adjustments (consist of exchange
0.94 10.80 1.91 - 12.71
difference on translation of foreign operations)
Closing Accumulated Amortisation/
31.63 233.83 115.63 0.10 349.56
Impairment
Net Carrying Amount 5,376.79 2,440.64 28.51 - 2,469.15

NOTE :

* Includes trademarks / brands amounting to ` 2,329.42 crore (Mar-31-2022 : ` 2,219.18 crore) that have an indefinite
life and are tested for impairment at every year end. Based on analysis of all relevant factors (brand establishment,
stability, types of obsolescence etc.), there is no foreseeable limit to the period over which the assets are expected
to generate net cash inflows for the Company. Refer Note 52 for details of impairment for trademarks / brands with
indefinite useful life.

# Ind AS 29 “Financial Reporting in Hyperinflationary Economies’’ has been applied to the Group’s entities with a
functional currency of Argentina Peso . Ind AS 21 “The Effects of Changes in Foreign Exchange Rates” has been
applied to translate the financial statements of such entities for consolidation. Refer Note 2.1 (e) for impact of these
standards.

Note 6A : Intangible Assets under Development

Intangible assets under development ageing schedule
` Crore
As at March 31, 2023
Less than More than Total
Intangible assets under development ageing 1-2 years 2-3 years
1 year 3 years
Projects in progress - - - - -
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects - - - - 3.81
Total - - - - 3.81

365
 As at March 31, 2022
Less than 1 More than 3 Total
Intangible Assets under Development ageing 1-2 years 2-3 years
year years
Projects in progress - - - - -
Projects temporarily suspended - - - - -
CWIP -assets not categorised as projects - - - - 1.69
Total - - - - 1.69

Note :
There are no projects whose completion is overdue or exceeded the cost as compared to its original plan.
There are no suspended projects.

Note 7: Other Investments (Non-Current) ` Crore

Amounts
As at As at
March 31, 2023 March 31, 2022
Quoted, fully paid up:
At Amortised Cost
Investments in Government Bonds 640.25 145.92
Investments in Target Mutual fund 199.08 -
Unquoted, fully paid up:
At amortised cost
Investments in Deposits with Non-Banking Financial Companies - 25.20
Total 839.33 171.12
Aggregate Amount of Unquoted Investments - 25.20
Aggregate Amount of Quoted Investments 839.33 145.92
Aggregate Market Value of Quoted Investments 839.33 145.92
Aggregate Provision for Impairment in the Value of Investments - -

Note 8: Loans (Non-Current) ` Crore

As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.03 0.03
Total 0.03 0.03

Note 9: Other Non-Current Financial Assets ` Crore

As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Security Deposits 21.01 23.74
Others 0.60 1.35
TOTAL 21.61 25.09

366
 Financial Statements | Consolidated

Note 10: Income Taxes

A Income tax expense consists of the following:

i Tax expense recognised in the Statement of Profit and Loss ` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Current Tax:
Current tax on profits for the year 396.25 397.31
Deferred tax (net) 7.21 9.15
MAT Credit Recognised (adjustment on account of previous period audit) (6.00) (37.23)
MAT credit utilised 32.81 2.64
Total income tax expense 430.27 371.87
Deferred tax is in respect of origination and reversal of temporary differences.
ii Current Tax and Deferred Tax related to items recognised in Other Comprehensive Income during the year : ` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
On remeasurements of defined benefit plans
Deferred tax (1.74) (1.76)
On revaluation of cash flow hedges
Deferred tax (0.07) -
TOTAL (1.81) (1.76)

B Reconciliation of tax expense and the accounting profit

The reconciliation between estimated income tax expense at statutory income tax rate and income tax expense reported in
Consolidated Statement of Profit and Loss is given below:
` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Profit Before Tax 2,132.73 2,155.26
Statutory Income tax rate 32.70% 31.94%
Expected income tax expense 697.50 688.35
Tax effect of adjustments to reconcile expected Income Tax Expense to reported
Income Tax Expense:
Deduction under Sec 80IC & 80IE of Indian Income Tax Act, 1961 (300.53) (290.67)
Effect of other tax offsets 1.39 4.16
Tax impact of income not subject to tax (3.26) (3.36)
Tax effects of amounts which are not deductible for taxable income 12.61 10.91
Tax effect on divestment of investment in associate - (16.54)
Reversal of DTA due to rate change - (25.54)
Adjustments for current tax of prior periods (Excess MAT utilised) (Refer note (e)
(6.00) (37.23)
below)
Deferred Tax Asset not recognised on losses 60.03 42.49
Tax benefits in overseas jurisdictions (33.97) (10.46)
Others 2.50 9.76
Total income tax expense 430.27 371.87
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.

367
 C Tax Assets And Liabilities ` Crore
As at As at
March 31, 2023 March 31, 2022
Non-Current Tax Assets (net) 101.32 89.63
Current Tax Liabilities (net) 14.71 22.22

D Deferred Tax Assets (Net Of Liabilities): ` Crore

As at As at
March 31, 2023 March 31, 2022
Deferred Tax Liability on account of :
Property, Plant and Equipment (28.49) (41.61)
Intangible assets (196.19) (193.27)
Others (5.17) (1.16)
Deferred Tax Asset on account of : -
Defined benefit obligations 16.52 21.08
Intangible assets 336.44 336.72
Provisions 53.50 72.69
MAT credit 482.74 509.46
Others (includes hyperinflation) 43.40 27.60
Total Deferred Tax Assets 702.75 731.51

E Deferred Tax Liabilities (Net Of Assets): ` Crore

As at As at
March 31, 2023 March 31, 2022
Deferred Tax Liability on account of :
Property, Plant and Equipment (27.52) (19.65)
Intangible assets (229.00) (175.11)
Others (5.61) -
Deferred Tax Asset on account of :
Defined benefit obligations - 6.23
Provisions 38.83 21.69
Tax losses 136.98 101.39
Others 24.81 13.51
Total Deferred Tax (Liabilities) (61.51) (51.94)

Net Deferred Tax (Liabilities) / Assets 641.24 679.57

F Movement in Deferred Tax (Liabilities) / Asset ` Crore

Property, Intangible Other Defined Provisions MAT Other Deferred
plant and assets Deferred benefit Credit Deferred Tax
equipment Tax obligations Tax Asset Liability /
Liability Asset (net)
As at April 1, 2021 (60.99) (35.53) (0.10) 51.21 85.60 474.87 122.70 637.76
Charged/(credited) :
- to profit or loss (0.27) (13.01) (1.06) (22.14) 8.78 34.59 18.55 25.44
- foreign currency translation - 16.88 - - - - - 16.88
- to other comprehensive income - - - (1.76) - - (1.76)
-to reserves - - - - - - 1.25 1.25

368
 Financial Statements | Consolidated

As at March 31, 2022 (61.26) (31.66) (1.16) 27.31 94.38 509.46 142.50 679.57
Charged/(credited) :
- to profit or loss 5.25 (51.46) (9.62) (9.05) (2.05) (26.71) 55.08 (38.56)
- foreign currency translation - (5.63) - - - - - (5.63)
- to other comprehensive income - - - (1.74) - (0.07) (1.81)
-to reserves - - - - - - 7.67 7.67
As at March 31, 2023 (56.01) (88.75) (10.78) 16.52 92.33 482.75 205.18 641.24

(a) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority.

(b) Significant management judgment is required in determining provision for income tax, deferred tax assets
(including MAT credit) and liabilities and recoverability of deferred income tax assets. The recoverability of
deferred income tax assets is based on estimates of taxable income and the period over which deferred
income tax assets will be recovered.

(c) The Group has not recognized deferred tax liability on undistributed profits of its subsidiaries and associates
amounting to ` 1,640.96 crores (Mar-31-2022 : ` 1,110.82 crores) because it is able to control the timing of
the reversal of temporary differences associated with such undistributed profits and it is probable that such
differences will not reverse in the foreseeable future.

(d) MAT paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment
to future income tax liability, is considered as an asset if there is convincing evidence that the Group will pay
normal income tax against which the MAT paid will be adjusted.

During the year the Group has utilized/(recognised) MAT credit of ` 26.71 crores (Mar-31-2022 : (` 37.23
crores)) . Group has re-assessed its utilization of MAT credit,considering business projections, benefits
available from tax holiday, remaining period for such benefits etc based on which there is reasonable
certainty of utilizing the balance credit of ` 482.74 crores (Mar-31-2022 : ` 509.46 crores) in future years
against the normal tax expected to be paid in those years.

(e) During the year ended March 31, 2023, the group has reassessed tax benefits under section 80IE of the
Income tax Act for financial year 2020-21 based on which incremental Minimum alternate tax credit of ` 6
crore (Mar-31-2022 : ` 37.23 crores) has been recognised.

(f) New provision inserted in the income tax act (Sept 2019) with effect from fiscal year 2019-20, allows any
domestic company to pay income tax in India at the rate of 25.17% subject to condition they will not avail
any incentive or exemptions. The lower rate is an option and companies can continue to account based on
the old rates. The Group has plants located in North-east region enjoying income tax exemption, and the
effective rate based on the tax exemption plants is lower than 25.17%, so Group decided to not opt for
lower rate in FY 2022-23

(g) Based on internal projections the Group plans to opt for the lower tax rate in FY 2024-25 and remeasured
the deferred taxes at the lower tax rate expected to be availed in the future. Accordingly, the Group has
reversed deferred tax assets/liabilities recognised in earlier years at the tax rates enacted during those years,
to the extent they are likely to reverse after 31st March 2024. The impact of such reversal was ` (1.28 crore)
for the year ended March 31, 2023 (Year ended March 31, 2022: ` 1.11 crore).

369
 Note 11: Other Non-Current Assets ` Crore

As at As at
March 31, 2023 March 31, 2022
Capital Advances
Considered Good 17.79 54.09
Considered Doubtful 0.86 1.00
Less: Provision for Doubtful Advances (0.86) (1.00)
Balances with Government Authorities 30.41 38.69
Other non-current assets
Considered Good-Unsecured 0.48 0.89
0.48 0.89
TOTAL 48.68 93.67

Note 12: Inventories ` Crore

As at As at
March 31, 2023 March 31, 2022
(Valued at lower of cost and net realizable value)
Raw Materials (Including Packing Materials) 873.96 1,269.76
Goods-in Transit 37.60 22.01
911.56 1,291.77
Work-in-Progress 69.20 90.51
Finished goods 469.42 654.79
Stock-in-Trade 61.57 67.83
Stores and Spares 25.40 24.95
TOTAL 1,537.15 2,129.85
Refer Note 54 for Assets pledged as security

During the year ended March 31, 2023 an amount of ` 3.05 crore (31-Mar-22 ` (5.48) crore) was debited /(credited) to the statement
of Profit and Loss on account of write off/ write back of inventories (net) including damaged and slow moving inventory.

Note 13: Investments (Current) ` Crore

Amounts
As at As at
March 31, 2023 March 31, 2022
Quoted, fully paid up:
At Fair Value through Profit or Loss
Investments in Mutual Funds 943.99 389.51
At Amortised Cost
Investments in Non-convertible Debentures with Non-Banking Financial Companies 728.37 127.19
Investments in Commercial Papers with Non-Banking Financial Companies 342.02 49.98
Unquoted, fully paid up:
At Amortised Cost
Investments in Deposits with Non-Banking Financial Companies 175.27 277.63
TOTAL 2,189.65 844.31

Aggregate amount of unquoted investments 175.27 277.63

Aggregate amount of quoted investments 2,014.38 566.68
Aggregate Market Value of quoted Investments 2,014.38 566.68

370
 Financial Statements | Consolidated

Note 14: Trade Receivables ` Crore

As at As at
March 31, 2023 March 31, 2022
Considered Good- Secured 0.68 0.68
Considered Good - Unsecured 1,244.60 1,115.64
Trade Receivables - credit impaired 67.90 59.79
Less: Impairment allowance for Doubtful Debts (67.90) (59.79)
TOTAL 1,245.28 1,116.32
Refer credit risk in note 49 (B)
Refer Note 54 for Assets pledged as security
Note:
There are no outstanding trade receivables which resulted into significant increase in credit risk apart from receivables which are
impaired and provided.

Trade Receivables ageing schedule ` Crore

Outstanding for following periods from due date of payment

As on March 31, 2023 More Total

Not Up to 6 6 months
1-2 years 2-3 years than 3
due months to 1 year
years
Undisputed trade receivables- considered
937.44 283.39 18.78 4.69 - 0.98 1,245.28
good
Undisputed trade receivables- which have
- - - - - - -
significant increase in risk
Undisputed trade receivables- credit impaired - 0.02 16.89 31.63 5.53 7.77 61.84
Disputed trade receivables- considered good - - - - - - -
Disputed trade receivables- which have
- - - - - - -
significant increase in risk
Disputed trade receivables- credit impaired - 0.12 0.05 0.82 0.73 4.34 6.06
Provision for bad and doubtful debts (67.90)
Total 937.44 283.53 35.72 37.14 6.26 13.09 1,245.28
` Crore
Outstanding for following periods from due date of payment

As on March 31, 2022 More Total

Not Up to 6 6 months
1-2 years 2-3 years than 3
due months to 1 year
years
Undisputed trade receivables- considered
791.21 315.27 7.26 2.30 0.19 0.09 1,116.32
good
Undisputed trade receivables- which have
- - - - - - -
significant increase in risk
Undisputed trade receivables- credit impaired - 0.37 10.43 10.74 26.31 3.87 51.72
Disputed trade receivables- considered good - - - - - - -
Disputed trade receivables- which have
- - - - - - -
significant increase in risk
Disputed trade receivables- credit impaired 0.01 0.26 0.90 0.61 4.38 1.91 8.07
Provision for bad and doubtful debts (59.79)
Total 791.22 315.90 18.59 13.65 30.88 5.87 1,116.32

371
 Note 15A: Cash and Cash Equivalents ` Crore

As at As at
March 31, 2023 March 31, 2022
Balances with Banks
- In Current Accounts 293.47 672.50
- Deposits with less than 3 months original maturity 51.26 74.63
344.73 747.13
Cheques, Drafts on Hand 3.46 1.62
Cash on hand 9.43 2.17
TOTAL 357.62 750.92

Note 15B: Other Bank Balances ` Crore

As at As at
March 31, 2023 March 31, 2022
Deposits with maturities more than 3 months but less than 12 months 19.42 341.67
In Unpaid Dividend Accounts 13.68 15.18
TOTAL 33.10 356.85
NOTES:
The fixed deposits include deposits under lien against bank guarantees ` 4.36 crore (Mar-31-2022 : ` 4.23 crore)

Note 16: Loans (Current) ` Crore

As at As at
March 31, 2023 March 31, 2022
Unsecured, Considered Good, Unless Otherwise Stated
Loans to Employees 0.05 0.05
TOTAL 0.05 0.05

372
 Financial Statements | Consolidated

Note 17: Other Current Financial Assets ` Crore

As at As at
March 31, 2023 March 31, 2022
Security Deposits 3.88 4.15
Derivatives
Interest rate swaps used for hedging - 0.26
Cross Currency Interest rate swap used for hedging 0.46 -
Foreign-exchange forward contracts used for hedging 1.03 0.11
Refunds/Incentives receivables from Govt. Authorities
Considered Good 21.18 29.84
Considered Doubtful 18.65 22.56
Less: Impairment allowance for doubtful advances (18.65) (22.56)
21.18 29.84
Others (includes insurance claim receivables & export incentive receivables) 15.76 7.47
TOTAL 42.31 41.83

Note 18: Other Current Assets ` Crore

As at As at
March 31, 2023 March 31, 2022
Balances with Government Authorities 151.65 180.58
Contract Assets (right to receive inventory) 9.50 12.42
Other Advances (includes vendor advances & prepaid expenses)
Considered Good 239.66 254.14
Considered Doubtful 1.29 1.00
Less: Provision for Doubtful Advances (1.29) (1.00)
239.66 254.14
TOTAL 400.81 447.14

Note 19: Share Capital ` Crore

As at As at
March 31, 2023 March 31, 2022
Authorised
1,030,000,000 Equity Shares (Mar-31-2022 : 1,030,000,000) of ` 1 each 103.00 103.00

10,000,000 Preference Shares (Mar-31-2022 : 10,000,000) of ` 1 each 1.00 1.00

Issued
1,022,726,442 Equity Shares (31-Mar-22: 1,022,612,203) of ` 1 each 102.27 102.26
Subscribed and Fully Paid up
1,022,695,318 Equity Shares (31-Mar-22: 1,022,581,079) of ` 1 each fully paid up 102.27 102.26
TOTAL 102.27 102.26

NOTES:
a) During the year, the Company has issued 1,14,239 equity shares (31-Mar-2022: 94,806) under the Employee Stock
Grant Scheme.
b) 31,124 Right Issue equity shares (31 March 2022 : 31,124 equity shares) are kept in abeyance due to various suits
filed in courts / forums by third parties for which final order from courts/claim 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:

373
 As at March 31, 2023 As at March 31, 2022
No. of Shares ` Crore No. of Shares ` Crore
Shares outstanding at the beginning of the year 1,022,581,079 102.26 1,022,486,273 102.25
Add : Shares Issued on exercise of employee
114,239 0.01 94,806 0.01
stock grant scheme
Shares outstanding at the end of the year 1,022,695,318 102.27 1,022,581,079 102.26

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 31 March 2023 the amount of per share dividend recognised as distribution to equity shareholders was
Nil (31 March 2022 : NIL).

e) Details of shareholders holding more than 5% shares in the Company:

As at March 31, 2023 As at March 31, 2022
Name of the Shareholder
No. of Shares % held No. of Shares % held
Godrej & Boyce Manufacturing Co Ltd 75,011,445 7.33 75,011,445 7.34
Godrej Industries Limited 242,812,860 23.74 242,812,860 23.75
Godrej Seeds & Genetics Limited 280,500,000 27.43 280,500,000 27.43

f) Shares Reserved for issue under options

The Company has 9,90,235 (previous year 6,16,102 ) equity shares reserved for issue under Employee Stock Grant
Scheme as at March 31, 2023.(As detailed in Note 45)

g) Information regarding aggregate number of equity shares during the five years immediately preceding the
date of Balance Sheet:

During the year 2018-19, pursuant to the approval of Shareholders, Company has allotted 340,722,032 number
of fully paid Bonus shares on Sep 17,2018 in the ratio of one equity share of ` 1 each fully paid up for every two
existing equity shares of ` 1 each fully paid up.

During the year 2017-18, pursuant to the approval of Shareholders, Company has allotted 340,600,816 number
of fully paid Bonus shares on June 27,2017 in the ratio of one equity share of ` 1 each fully paid up for every one
existing equity shares of ` 1 each fully paid up.

The Company has not issued shares for consideration other than cash and has not bought back any shares during
the past five years other than as reported above.

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 Group’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 Group makes adjustments
to its capital structure based on economic conditions or its business requirements. To maintain / adjust the capital
structure the Group may make adjustments to dividend paid to its shareholders or issue new shares.

The Group 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.

374
 Financial Statements | Consolidated

k) Details of shares held by promoters

As at 31 March 2023
No. of
No. of shares %
shares Change
Class of held at the Change
Promoter Name held at the during
Shares end of the during
beginning the year
year the year
of the Year
Godrej Seeds & Genetics Limited Equity 280,500,000 280,500,000 - -
Godrej Industries Limited shares 242,812,860 242,812,860 - -
Godrej & Boyce Manufacturing Co. Ltd. of 75,011,445 75,011,445 - -
Rishad Kaikhushru Naoroji & Others (Partners Of Rkn Enterprises) INR 1 13,438,500 13,438,500 - -
Pheroza Jamshyd Godrej each 9,640,700 9,640,700 - -
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar fully
paid 2,901,200 2,901,200 - -
(Trustees Of Fvc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
2,901,200 2,901,200 - -
(Trustees Of Nvc Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad Family Trust) 2,843,100 2,843,100 - -
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Family Trust) 2,843,100 2,843,100 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Family Trust) 2,843,100 2,843,100 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Hng
2,752,299 2,752,299 - -
Family Trust)
Sohrab Nadir Godrej 1,901,184 1,901,184 - -
Burjis Nadir Godrej 1,901,172 1,901,172 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Bng
1,312,441 1,312,441 - -
Successor Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Sng
1,312,429 1,312,429 - -
Successor Trust)
Hormazd Nadir Godrej 461,314 461,314 - -
Pirojsha Adi Godrej 370,129 370,129 - -
Nisaba Godrej 370,087 370,087 - -
Azaar Arvind Dubash 370,000 370,000 - -
Adi Barjorji Godrej 1,500 1,500 - -
Navroze Jamshyd Godrej 77 77 - -
Rishad Kaikhushru Naoroji 72 72 - -
Freyan Crishna Bieri 70 70 - -
Tanya Arvind Dubash 66 66 - -
Nyrika Holkar 64 64 - -
Nadir Barjorji Godrej 63 63 - -
Raika Jamshyd Godrej 50 50 - -
Jamshyd Godrej And Others (Trustees Of The Raika Godrej Family
24 24 - -
Trust)
Adi Godrej, Tanya Dubash, Nisaba Godrej And Pirojsha Godrej
1 1 - -
(Trustees Of Abg Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad Children Trust) 1 1 - -
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Children Trust) 1 1 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Children Trust) 1 1 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Lineage Trust) 1 1 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Nbg
1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Rng
1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Bng
1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Burjis Godrej (Trustees Of Bng
1 1 - -
Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Sng
1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Sohrab Godrej (Trustees Of Sng
1 1 - -
Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Jng Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Pjg Family Trust )
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Rjg Family Trust)

375
 No. of
No. of shares %
shares Change
Class of held at the Change
Promoter Name held at the during
Shares end of the during
beginning the year
year the year
of the Year
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of Equity
1 1 - -
Raika Lineage Trust) shares
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of of
1 1 - -
Njg Family Trust) INR 1
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of each
fully 1 1 - -
Navroze Lineage Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika Holkar paid
1 1 - -
(Trustees Of Sgc Family Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Vmc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Fvc Children Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Nvc Children Trust)

As at 31 March 2022
No. of
No. of shares Change %
shares
Class of held at the during Change
Promoter Name held at the
Shares end of the the during
beginning
year year the year
of the Year
Equity
Godrej Seeds & Genetics Limited 280,500,000 - -
shares 280,500,000
of
Godrej Industries Limited 242,812,860 - -
INR 1 242,812,860
Godrej & Boyce Manufacturing Co. Ltd. each 75,011,445 75,011,445 - -
Rishad Kaikhushru Naoroji & Others (Partners Of Rkn Enterprises) fully 13,438,500 13,438,500 - -
Pheroza Jamshyd Godrej paid
9,640,700 9,640,700 - -
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
2,901,200 2,901,200 - -
(Trustees Of Fvc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
2,901,200 2,901,200 - -
(Trustees Of Nvc Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad Family Trust) 2,843,100 2,843,100 - -
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Family Trust) 2,843,100 2,843,100 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Family Trust) 2,843,100 2,843,100 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Hng
2,752,299 2,752,299 - -
Family Trust)
Sohrab Nadir Godrej 1,901,184 1,901,184 - -
Burjis Nadir Godrej 1,901,172 1,901,172 - -
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Bng
1,312,441 1,312,441 - -
Successor Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Sng
1,312,429 1,312,429 - -
Successor Trust)
Hormazd Nadir Godrej 461,314 461,314 - -
Pirojsha Adi Godrej 370,129 370,129 - 0.00%
Nisaba Godrej 370,087 370,087 - 0.00%
Azaar Arvind Dubash 370,000 370,000 - -
Adi Barjorji Godrej 1,500 1,500 - 0.00%
Navroze Jamshyd Godrej 77 77 - -
Rishad Kaikhushru Naoroji 72 72 - -
Freyan Crishna Bieri 70 70 - -
Tanya Arvind Dubash 66 66 - 0.00%
Nyrika Holkar 64 64 - -
Nadir Barjorji Godrej 63 63 - -
Raika Jamshyd Godrej 50 50 - -
Jamshyd Godrej And Others (Trustees Of The Raika Godrej Family
24 24 - -
Trust)
Adi Godrej, Tanya Dubash, Nisaba Godrej And Pirojsha Godrej
1 1 - -
(Trustees Of Abg Family Trust)
Tanya Dubash And Pirojsha Godrej (Trustees Of Tad Children Trust) 1 1 - -
Nisaba Godrej And Pirojsha Godrej (Trustees Of Ng Children Trust) 1 1 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Children Trust) 1 1 - -
Pirojsha Godrej And Nisaba Godrej (Trustees Of Pg Lineage Trust) 1 1 - -

376
 Financial Statements | Consolidated

No. of
No. of shares Change %
shares
Class of held at the during Change
Promoter Name held at the
Shares end of the the during
beginning
year year the year
of the Year
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Nbg Equity
1 1 - -
Family Trust) shares
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Rng of
1 1 - -
Family Trust) INR 1
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Bng each
fully 1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Burjis Godrej (Trustees Of Bng paid
1 1 - -
Lineage Trust)
Nadir Godrej, Hormazd Godrej And Rati Godrej (Trustees Of Sng
1 1 - -
Family Trust)
Nadir Godrej, Hormazd Godrej And Sohrab Godrej (Trustees Of Sng
1 1 - -
Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Jng Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Pjg Family Trust )
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Rjg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Raika Lineage Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Njg Family Trust)
Jamshyd Godrej, Pheroza Godrej And Navroze Godrej (Trustees Of
1 1 - -
Navroze Lineage Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Sgc Family Trust)
Smita Godrej Crishna, V M Crishna, F C Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Vmc Family Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Fvc Children Trust)
Smita Godrej Crishna, Freyan Crishna Bieri And Nyrika Holkar
1 1 - -
(Trustees Of Nvc Children Trust)

Note 20: Other Equity ` Crore

As at As at
March 31, 2023 March 31, 2022
Securities Premium 1,434.70 1,424.93
General Reserve 154.05 154.05
Other Reserves
Capital Investment Subsidy Reserve 0.15 0.15
Capital Redemption Reserve 1.46 1.46
Employee Stock Options Outstanding 23.56 13.17
25.17 14.78
Retained Earnings 11,096.62 9,426.14
Other Comprehensive Income (effective portion of cash flow hedges & exchange
981.42 433.77
differences in translating financial statements of foreign operations)
TOTAL 13,691.96 11,453.67

377
 OTHER RESERVES MOVEMENT ` Crore
As at As at
March 31, 2023 March 31, 2022
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
Employee Stock Options Outstanding
Gross Employee Compensation for Options granted 13.17 7.53
(-) Exercise of Share options (9.77) (6.32)
(+) Deferred Employee Compensation Expense (Refer Note 33) 20.16 11.96
Closing Balance 23.56 13.17
TOTAL 25.17 14.78

Nature and purpose of reserves

1) Securities Premium

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

4) Capital Redemption Reserve

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

5) 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 Option Plan and 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.

6) Exchange differences on translating the financial statements of foreign operations

The translation reserve comprises all foreign currency exchange differences arising from the translation of the
financial statements of foreign operations

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.

378
 Financial Statements | Consolidated

Note 21: Non-Current Borrowings

` Crore
Maturity Date Terms of Repayment Interest As at As at
rate* March 31, 2023 March 31, 2022
A. Secured
Term Loans from banks in Upto August Payable in Multiple 5.49% - 5.49% 0.10 0.16
USD 2024 Installments every year
Unsecured
Term loans
a) From Banks in USD Upto June 2025 Payable in Multiple 1.29% - 5.55% 411.73 768.80
Installments every year
411.83 768.96
411.83 768.96
Less: Current maturities of (222.71) (388.11)
long term debt (from banks
in USD) (Refer Note 24)
TOTAL 189.12 380.85

*includes variable and fixed rate instruments. Refer Note 49 A (iii) for interest rate risk and Note 54 for assets pledged as security

Note 22: Provisions ` Crore

As at As at
March 31, 2023 March 31, 2022
Provision for Employee Benefits
Gratuity (Refer Note 44) 91.31 101.21
Compensated Absences 4.16 5.79
Other long term incentives 7.95 -
TOTAL 103.42 107.00

Note 23: Other Non-Current Liabilities ` Crore

As at As at
March 31, 2023 March 31, 2022
Others (includes deferred grants, sundry deposits) 1.57 2.29
TOTAL 1.57 2.29

379
 Note 24: Current Borrowings ` Crore

Maturity Date Terms of Coupon/ Interest As at As at

Repayment rate* March 31, 2023 March 31, 2022
A. Secured
Loans repayable on demand Cash Credit Payable on 7.50% -9% 4.82 0.06
from banks (Refer Note demand
below)
4.82 0.06
B. Unsecured
Loans repayable on demand Upto 12 Mulitple 1.03%-13.35% 534.94 397.70
from banks months dates
Overdraft from banks On demand On demand 7.15% - 55.90%** 82.37 440.94
617.31 838.64
C. Current maturity of long 222.71 388.11
term debt (Refer Note 21)
TOTAL 844.84 1,226.81

NOTES:

The Group does not have any default as on the Balance Sheet date in the repayment of any loan or interest.

*includes variable and fixed rate instruments. Refer Note 49 A (iii) for interest rate risk and Note 54 for assets pledged
as security.

**55.9% interest rate corresponds to interest rate applicable to group’s subsidiary in Argentina operating in
hyperinflationary economy.

Note 25: Trade Payables ` Crore

As at As at
March 31, 2023 March 31, 2022
Total oustanding dues of micro enterprises and small enterprises 46.40 23.24
Total outstanding dues of creditors other than micro enterprises and small enterprises* 1,776.77 2,139.82
TOTAL 1,823.17 2,163.06

* Trade Payables Includes invoices discounted by Vendors with banks

Refer Note 49 ( C) for liquidity risk

Disclsoures pursuant to Micro, Small and Medium Enterprises development act, 2006 (MSMED act) are as follows:

As at As at
March 31, 2023 March 31, 2022
I The principal amount remaining unpaid to any supplier at the end of the accounting 46.40 23.24
year included in trade payables
II Interest due thereon - -
Trade payable dues to Micro and small enterprises 46.40 23.24
(a) The amount of interest paid by the buyer under MSMED act 2006 along with the - -
amounts of the payment made to the supplier beyond the appointed day during
each accounting year
(b) The amount of interest due and payable for the period (where the principal has - -
been unpaid but interest under the MSMED Act, 2006 not paid)
(c) The amount of interest accrued and remaining unpaid at the end of the accounting - -
year
(d) The amount of further interest due and payable even in the succeeding year, until - -
such date when the interest dues as above are actually paid to the small enterprise,
for the purpose of disallowance as a deductible expenditure under section 23

380
 Financial Statements | Consolidated

Ageing of Trade payables outstanding as on March 31, 2023 ` Crore

Outstanding for following periods from due date of payment

Particulars More Total

Less than
Not due 1-2 years 2-3 years than 3
Unbilled 1 year
years
MSME - 45.84 0.56 - - - 46.40
Other than MSME 309.23 1,252.67 201.63 7.36 2.35 2.77 1,776.01
Disputed dues -MSME - - - - - - -
Disputed dues -Others - - - - - 0.76 0.76
Total 309.23 1,298.51 202.19 7.36 2.35 3.53 1,823.17

Ageing of Trade payables outstanding as on March 31, 2022 ` Crore

Outstanding for following periods from due date of payment

Particulars More Total

Less than
Not due 1-2 years 2-3 years than 3
Unbilled 1 year
years
MSME - 23.06 0.18 - - - 23.24
Other than MSME 586.44 1,360.87 186.88 2.52 1.01 1.34 2,139.06
Disputed dues -MSME - - - - - - -
Disputed dues -Others - - - - - 0.76 0.76
Total 586.44 1,383.93 187.06 2.52 1.01 2.10 2,163.06

Note 26: Other Current Financial Liabilities ` Crore

Particulars As at As at
March 31, 2023 March 31, 2022
Security deposit received 5.05 5.10
Unclaimed Dividends (Refer Note (a) below) 13.68 15.18
Put Option liability 81.08 50.83
Interest accrued 3.02 0.51
Derivatives
Interest rate swaps used for hedging - 0.54
Cross currency Interest rate swaps used for hedging 11.95 -
Foreign-exchange forward contracts used for hedging 0.08 7.64
Employee Benefits Payable 134.23 132.81
Capital creditors and other payables 17.30 14.62
TOTAL 266.39 227.23

NOTE:

a) 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.

381
 Note 27: Other Current Liabilities ` Crore

As at As at
March 31, 2023 March 31, 2022
Statutory Dues (VAT, GST, TDS etc.) 48.13 32.05
Advance from customers 38.44 30.25
Contractual and constructive obligation 114.51 117.89
Other Payables (including PF) 27.95 43.65
TOTAL 229.03 223.84

Note 28: Provisions ` Crore

As at As at
March 31, 2023 March 31, 2022
Provision for Employee Benefits
Gratuity (net) (Refer Note 44) 8.15 8.38
Compensated Absences 4.21 4.45
Other Provision :
Provision for Sales Returns 30.02 41.33
Provision towards Litigations 32.78 22.05
TOTAL 75.16 76.21

Movements in each class of other provisions during the financial year are set out below:

` Crore
Sales Returns Provision
towards
Litigation
As at April 1, 2022 41.33 22.05
Additional provisions recognised - 12.38
Amount Utilised (10.17) -
Foreign currency translation difference (1.14) (1.65)
As at March 31, 2023 30.02 32.78

` Crore
Sales Returns Provision
towards
Litigation
As at April 1, 2021 37.34 20.66
Additional provisions recognised 4.91 2.35
Amount Utilised (0.13) (0.61)
Foreign currency translation difference (0.79) (0.35)
As at March 31, 2022 41.33 22.05

Sales Returns:

When a customer has a right to return the product within a given period, the Group recognises a provision for sales
return. This is measured basis 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.

382
 Financial Statements | Consolidated

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 the Group assesses that it is possible/probable that an
outflow of economic resources will be required. These provisions have not been discounted as it is not practicable for
the Group 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, 2023 March 31, 2022
a) Sale of Products 13,198.68 12,174.22
Other Operating Revenues (includes export incentive, GST refunds, scrap sales etc. ) 117.29 102.28
TOTAL 13,315.97 12,276.50

b) Revenue Information ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Revenue by product categories
Home care 5,114.25 4,958.07
Personal care 8,084.43 7,216.15
TOTAL 13,198.68 12,174.22

c) Reconciliation of the amount of revenue recognised in the statement of profit and loss with the contracted price
Year ended Year ended
March 31, 2023 March 31, 2022
Revenue as per contracted price 14,358.15 13,250.87
Sales returns (76.72) (76.93)
Rebates/Discounts (1,082.75) (999.72)
Revenue from contract with customers 13,198.68 12,174.22

d) Contract Balances ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Trade receivables (Refer Note 14) 1,245.28 1,116.32
Contract assets (Refer Note 18) 9.50 12.42
Contract liabilities (Refer Note 27) 38.44 30.25
Note: Contract assets represents right to receive the inventory and contract liabilities represents advances received from
customers for sale of goods at the reporting date.

e) Significant changes in contract liabilities during the period ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Revenue recognised that was included in the contract liability balance at the
30.25 27.44
beginning of the period

383
 Note 30 : Other Income ` Crore

Year ended Year ended

March 31, 2023 March 31, 2022
Interest Income on:
Non-convertible debentures and fixed deposits with Non-Banking Financial
16.97 26.48
Companies at amortised cost
On Advances and Fixed Deposits 68.29 33.10
Commercial Papers 10.30 0.81
On Others 0.48 0.17
Net Gain on Sale of Investments 48.15 10.90
Fair Value Gain \ (Loss) on financial assets measured at fair value through profit or loss (net) 5.83 0.62
Other Non-Operating Income
Profit on Sale of Property, Plant & Equipment (Net) 1.24 -
Rental Income 11.30 10.97
Miscellaneous non operating income 5.85 6.66
TOTAL 168.41 89.71

Note 31: Cost of Materials Consumed ` Crore

Year ended Year ended

March 31, 2023 March 31, 2022
Raw material and packing material
Opening Inventory 1,291.77 941.12
Add : Purchases (net) 5,804.46 6,133.63
7,096.23 7,074.75
Less: Closing Inventory (911.56) (1,291.77)
Cost of Materials Consumed 6,184.67 5,782.98

Note 32: Changes in Inventories of Finished Goods,

Stock-in-Trade and Work-in-Progress ` Crore
Year ended Year ended
March 31, 2023 March 31, 2022
Opening Inventory
Finished Goods 654.79 587.86
Stock-in-Trade 67.83 86.42
Work-in-Progress 90.51 77.31
813.13 751.59
Less: Closing Inventory
Finished Goods 469.42 654.79
Stock-in-Trade 61.57 67.83
Work-in-Progress 69.20 90.51
600.19 813.13
(Increase) / decrease in Inventories 212.94 (61.54)

Note 33: Employee Benefits Expense ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Salaries and Wages 1,024.23 1,012.30
Contribution to Provident and Other Funds (Refer Note 44) 21.24 22.85
Share based payments to Employees (Employee Stock Grant Scheme) (Refer Note 45) 20.16 11.96
Staff Welfare Expenses 45.85 57.03
TOTAL 1,111.48 1,104.14

384
 Financial Statements | Consolidated

Note : During the year ended March 31, 2023, Employee Benefits expense includes provision for long term incentive
amounting to ` 7.95 Crore (Previous Year: NIL ) recorded on achievement of certain parameters as at March 31, 2023
and certain parameters expected to be achieved during the financial year 2023-24 and 2024-25 as per the long term
incentive scheme in accordance with the accounting standards. This long-term incentive is payable in
financial year 2024-25, subject to fulfilment of all the defined parameters and therefore the provision is recorded at its
present value.

Note 34: Finance Costs ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Interest Expense
Interest on bank loans and overdraft 99.33 65.66
Bill discounting charges 14.80 19.08
Interest on lease liability 7.72 6.74
Net Monetary loss on account of Hyperinflation 53.89 18.68
TOTAL 175.74 110.16

Note 35: Depreciation and Amortization Expenses ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 164.85 143.84
Depreciation on right of use asset 41.51 34.36
Amortization of intangible assets 29.93 31.73
TOTAL 236.29 209.93

Note 36: Other Expenses ` Crore

Year ended Year ended
March 31, 2023 March 31, 2022
Consumption of Stores and Spares 35.09 33.02
Power and Fuel 154.63 133.49
Rent (net) 60.55 66.72
Repairs and Maintenance
Plant and Equipment 16.99 16.11
Buildings 11.13 9.57
Others (net) 70.51 69.35
98.63 95.03
Insurance 34.97 24.18
Rates and Taxes 45.07 43.44
Processing and Other Manufacturing Charges 305.19 302.25
Travelling and Conveyance 69.54 44.32
Legal and Professional Charges 97.31 79.80
Donations 1.56 2.68
Sales Promotion 203.37 236.41
Advertising and Publicity 985.52 750.77
Selling and distribution expenses 202.32 146.17
Freight 427.16 424.06
Royalty 0.87 1.46
Commission 17.76 19.16
Bank charges 12.74 12.10
Net Loss on Sale / write off of Property, Plant and Equipment - 1.97
Net Loss on Foreign Currency Transactions and Translations 108.70 96.62
Bad Debts Written Off 5.40 3.20
Miscellaneous Expenses (net) (Refer Note (a) below) 204.86 185.31
TOTAL 3,071.24 2,702.16

NOTE :
a) Miscellaneous Expenses include the Group’s share of various expenses incurred by group companies for sharing
of services and use of common facilities.

385
 Note 37: Exceptional Items (Loss)/Gain ` Crore

Year ended Year ended

March 31, 2023 March 31, 2022
Restructuring Cost (29.31) (4.73)
Settlement of Litigation with tax authorities (18.77) -
Impairment Loss on other intangible assets (Refer note 52) (6.03) (60.19)
Impairment provision reversal on Associate (Refer note 51) - 15.38
Profit on Sale of Investment in Associate (Net) (Refer note 51) - 39.79
TOTAL (54.11) (9.75)
NOTE:

For the year ended March 31, 2023, exceptional items include impairment loss of ` 6.03 crore towards brands, restructuring costs
of ` 29.31 crore and ` 18.77 crore on account of litigation settlement under VAT amnesty scheme in the Consolidated Financial
Statements
For the year ended March 31, 2022, exceptional items for consolidated financial statements includes impairment loss of ` 60.19 crore
towards brands, restructuring costs of ` 4.73 crore offset by gain of ` 55.17 crore (net) on account of divestment of investment in an
associate.

Note 38: Earnings Per Share

Year ended Year ended
March 31, 2023 March 31, 2022
Net Profit After Tax (` Crore) 1,702.46 1,783.39

Number of Shares outstanding at the beginning of the year 1,022,581,079 1,022,486,273

Add : Shares Issued during the year 114,239 94,806
Number of Shares outstanding at the end of the year 1,022,695,318 1,022,581,079

Weighted Average Number of Equity Shares

For calculating Basic EPS 1,022,636,084 1,022,545,027
Effect of dilution:
Shared based payments 229,629 119,419
For calculating Diluted EPS 1,022,865,713 1,022,664,446

Earnings Per Share Before and After Extraordinary Items

(Face Value ` 1)
Basic (`) 16.65 17.44

Diluted (`) 16.65 17.44

Note 39 : Commitments ` Crore

Year ended Year ended

March 31, 2023 March 31, 2022
Estimated value of contracts remaining to be executed on capital account to the extent
not provided, net of advances there against of ` 15.15 crore (March 31,2022 : ` 37.11 73.64 41.55
crore)
TOTAL 73.64 41.55

Note 40 : Dividend
During the year 2022-23, no interim dividend has been paid.

386
 Financial Statements | Consolidated

Note 41 : Contingent Liabilities ` Crore

As at As at
March 31, 2023 March 31, 2022
a) CLAIMS FOR EXCISE DUTIES, TAXES AND OTHER MATTERS
i) Excise duty demands against which the Company / Group has preferred appeals 57.74 57.70
ii) Sales tax demands against which the Company / Group has preferred appeals 38.54 70.75
iii) GST matters 0.18 -
iv) Income-tax matters 252.38 253.79
v) Other matters 3.99 3.00
b) Guarantees given against Borrowings (in excess of Loans outstanding) / Bank facilities
i) Guarantee amounting to USD Nil (31-Mar-22 USD 49.58 million) given by the - 34.16
Company to The Hongkong and Shanghai Banking Corporation Limited, Singapore
Branch towards loan provided to Godrej Mauritius Africa Holdings Limited
ii) Guarantee amounting to USD 24.20 million (31-Mar-22 USD 24.20 million) given by 25.48 23.50
the Company to Sumitomo Mitsui Banking Corporation, Singapore Branch towards
loan provided to Godrej Mauritius Africa Holdings Limited
iii) Guarantee amounting to USD 50.50 million (31-Mar-22 USD 50.50 million) given 415.02 382.75
by the Company to Standard Chartered Bank, Mauritius towards bank facilities
provided to Godrej Tanzania Holdings Limited
iv) Guarantee amounting to USD 30.45 million (31-Mar-22 USD 36.75 million) given by 11.92 13.26
the Company to Sumitomo Mitsui Banking Corporation, Singapore Branch towards
loan provided to Godrej SON Holdings, Inc.
v) Guarantee amounting to USD 0.58 million (31-Mar-22 Nil) given by the Company to 4.73 -
Sumitomo Mitsui Banking Corporation, Singapore Branch towards interest rate swap
/ derivative facilities provided to Godrej Mauritius Africa Holdings Limited
Others
i) Guarantees issued by banks [secured by bank deposits under lien with the bank ` 27.89 37.92

4.53 crore (31-Mar-22 ` 4.39 crore)].

ii) Guarantee given by the Company to Kotak Mahindra Bank for credit facilities - 0.30
extended to M/s. Broadcast Audience Research Council
c) Claims against the Company not acknowledged as debt 31.59 32.28

d) The Group has reviewed all its pending litigations and proceedings and has adequately made provisions wherever
required and disclosed as contingent liability wherever applicable in the consolidated financial statements.
The Group does not expect the outcome of the proceedings to have a materially adverse effect on its financial
statements.

e) Other Matters

For India, the proposed Social Security Code, 2019, when promulgated, would subsume labour laws including
Employees’ Provident Funds and Miscellaneous Provisions Act and amend the definition of wages on which the
organisation and its employees are to contribute towards Provident Fund. The Company believes that there will
be no significant impact on its contributions to Provident Fund due to the proposed amendments. Additionally,
there is uncertainty and ambiguity in interpreting and giving effect to the guidelines of Hon. Supreme Court vide
its ruling in February 2019, in relation to the scope of compensation on which the organisation and its employees
are to contribute towards Provident Fund. The Company will evaluate its position and act, as clarity emerges.

387
 Note 42 : Related Party Disclosures
A) Related Parties and their Relationship
a) Associate Company:
% Holding as at % Holding as at
Name of the Associate Company Country
March 31, 2023 March 31, 2022
Bhabhani Blunt Hairdressing Pvt Limited India 0% 0%

*Refer note 51 for details of sale of investment in associate

b) Investing Entity in which the reporting entity is an Associate

i) Godrej Industries Limited

ii) Godrej Seeds & Genetics Limited

c) Companies under common Control with whom transactions have taken place during the year:

i) Godrej & Boyce Mfg. Co. Limited

ii) Godrej Agrovet Limited

iii) Godrej Tyson Foods Limited

iv) Godrej Properties Limited

v) Godrej Projects Development Private Limited

vi) Godrej One Premises Management Private Limited

d) Key Management Personnel and Relatives:

i) Mr. Adi Godrej Chairman Emeritus (till September 30,2021)

ii) Ms. Nisaba Godrej Executive Chairperson (Chairperson & Managing director upto October
18,2021) / Daughter of Mr. Adi Godrej / Sister of Mr. Pirojsha Godrej and Ms.
Tanya Dubash

iii) Mr. Sudhir Sitapati Managing Director & CEO (From October 18, 2021)

iv) Mr. V. Srinivasan Chief Financial Officer and Company Secretary (till August 31, 2021)

v) Mr. Sameer Shah Chief Financial Officer (From September 1, 2021)

vi) Mr. Rahul Botadara Company Secretary and Compliance Officer(From September 1, 2021)

vii) Mr. Pirojsha Godrej Non-Executive Director / Son of Mr. Adi Godrej / Brother of Ms. Nisaba Godrej
and Ms. Tanya Dubash

viii) Mr. Nadir Godrej Non-Executive Director/ Brother of Mr. Adi Godrej

ix) Ms. Tanya Dubash Non-Executive Director/ Daughter of Mr. Adi Godrej /Sister of Mr. Pirojsha
Godrej and Ms. Nisaba Godrej

x) Mr. Jamshyd Godrej Non Executive Director

xi) Mr. Aman Mehta Independent Director (Upto August 31, 2021)

xii) Mr. Omkar Goswami Independent Director

xiii) Ms. Ireena Vittal Independent Director

xiv) Mr. Narendra Ambwani Independent Director

xv) Ms. Ndidi Nwuneli Independent Director

xvi) Ms. Pippa Armerding Independent Director

388
 Financial Statements | Consolidated

xvii) Mr. Sumeet Narang Independent Director

xvii) Mr. Burjis Godrej Son of Mr.Nadir Godrej

xix) Ms. Rati Godrej Wife of Mr.Nadir Godrej

xx) Mr. Sohrab Godrej Son of Mr.Nadir Godrej

xxi) Mr. Hormazd Godrej Son of Mr.Nadir Godrej

xxii) Mr.Navroze Godrej Son of Mr. Jamshyd Godrej

xxiii) Mr. Azaar Arvind Dubash Son of Ms. Tanya Dubash

e) Post employment Benefit Trust where the reporting entity exercises significant influence

i) Godrej Consumer Products Employees’ Provident Fund

389
390
B) The Related Party Transactions are as under :
` Crore
Associate Company Investing Entity Companies Under Key Management Post employment Total
(Refer Note 51) in which the Common Control Personnel and benefit trust
reporting entity is Relatives
an associate
Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year Year Year
Sale of Goods - 0.13 29.63 33.47 2.65 1.49 - - - - 32.28 35.09
Sale of Capital Asset - - 0.04 0.01 0.02 - - - - - 0.06 0.01
Purchase of Materials and Spares - - 147.80 97.24 - 7.04 - - - - 147.80 104.28
Purchase of Fixed Asset including Assets - - - - 0.02 0.24 - - - - 0.02 0.24
Advance Paid - - - - - - - - - 9.50 - 9.50
Advance received back - - - - - - - - - 9.50 - 9.50
Royalty and Technical Fees Paid - 0.55 - - - - - - - - - 0.55
Establishment & Other Expenses Paid (Including
- 0.10 33.29 23.40 6.47 5.71 - - - - 39.76 29.21
provision for doubtful debts if any)
Expenses Recovered - - 1.37 1.24 0.19 0.01 - - - - 1.56 1.25
Investments Sold / Redeemed - 32.04 - - - - - - - - - 32.04
Lease Rentals Received - - 11.63 11.03 - - - - - - 11.63 11.03
Lease Rentals Paid - - 15.88 18.73 - - - - - - 15.88 18.73
Contribution during the year (Including
- - - - - - - - 15.03 17.39 15.03 17.39
Employees' Share)
Short Term Employment Benefits (Including
- - - - - - 20.68 16.48 - - 20.68 16.48
Commission on Profits and Sitting Fees)
Post Employment Benefits - - - - - - 0.49 0.49 - - 0.49 0.49
Other Long Term Benefits - - - - - - - 0.03 - - - 0.03
Share Based Payment - - - - - - 5.04 1.16 - - 5.04 1.16
TOTAL - 32.82 239.64 185.12 9.35 14.49 26.21 18.16 15.03 36.39 290.23 286.98

Outstanding Balances ` Crore

Guarantees Outstanding-
Receivables Payables Commitments
Given/ (Taken)
As at As at As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022 2023 2022
Associate Company - - - - - - - -
Investing Entity in which the reporting entity is an
2.97 3.07 13.52 11.39 (26.88) (26.88) - -
associate
Companies under Common Control 1.07 0.66 0.49 0.49 (1.21) (1.21) 0.24 0.24
Key Management Personnel and Relatives - - 2.22 2.36 - - - -
TOTAL 4.04 3.73 16.23 14.24 (28.09) (28.09) 0.24 0.24

Note : Refer note 7 for investments in associate

 Financial Statements | Consolidated

Note 43 : Forward Contracts

The Group uses forward exchange contracts to hedge its foreign exchange exposure relating to the underlying transactions and firm
commitment in accordance with its forex policy as determined by its Forex Committee. The Group does not use foreign exchange
forward contracts for trading or speculation purposes.

Forward/ Spot Contracts outstanding as at March 31, 2023 and March 31, 2022:

As at As at
March 31, 2023 March 31, 2022
In million INR cr In million INR cr
Forward Contracts to Purchase (USD) US $11.60 95.33 US $16.03 121.81
[415 contracts (previous year 248 contracts)]
Forward Contracts to Sell (USD) US $9.40 77.25 US $9.50 72.19
[2 contracts (previous year 4 contracts)]
Forward Contracts to Sell (Euro) € 0.00 0.00 € 2.00 16.85
[0 contract (previous year 4)]

Note 44 : Employee Benefits

a) DEFINED CONTRIBUTION PLAN

Provident Fund:
The contributions to the Provident Fund of certain employees (including some employees of the erstwhile Godrej
Household Products Ltd) are made to a Government administered Provident Fund and there are no further
obligations beyond making such contribution. The Superannuation Fund constitutes an insured benefit, which is
classified as a defined contribution plan as the Company contributes to an Insurance Company and has no further
obligation beyond making payment to the insurance company.

b) DEFINED BENEFIT PLAN

Gratuity:
i) The Company participates in the Employees’ Group Gratuity-cum-Life Assurance Scheme of HDFC Standard
Life Insurance Co. Ltd., a funded defined benefit plan for qualifying employees. Gratuity is payable to
all eligible employees on death or on separation / termination in terms of the provisions of the Payment
of Gratuity (Amendment) Act, 1997, or as per the Company’s scheme whichever is more beneficial to the
employees. The Gratuity scheme of the erstwhile Godrej Household Products Ltd., which was obtained
pursuant to the Scheme of Amalgamation, is funded through Unit Linked Gratuity Plan with HDFC Standard
Life Insurance Company Limited.

ii) For Godrej Nigeria Limited, management set aside physical assets with an investment outfit to fund future
benefit obligations arising under the gratuity plan.The physical assets earmarked for the fund’s investment
are being managed by the Pension Fund Administration outfit of First Guaranteed Pension Limited.

iii) Gratuity plans for entities other than mentioned in i) and ii) are unfunded.

iv) The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit
Credit Method, as at the Balance Sheet date, carried out by an independent actuary.

391
 v) The Company has a gratuity trust. The Group funds its unfunded gratuity payouts from its cash flows.
Accordingly, the Group creates adequate provision in its books every year based on actuarial valuation.

vi) These benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk and
investment risk.

Provident Fund:

The Company manages the Provident Fund plan through a Provident Fund Trust for its employees other than
those covered under Government Scheme which is permitted under The Employees’ Provident Fund and
Miscellaneous Provisions Act, 1952 and is actuarially valued. The plan envisages contribution by the employer
and employees and guarantees interest at the rate notified by the Provident Fund authority. The contribution
by employer and employee, together with interest, are payable at the time of separation from service or
retirement, whichever is earlier.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the
administered interest rates on an annual basis. These administered rates are determined annually
predominantly considering the social rather than economic factors and the actual return earned by the
Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities
on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions
there is no shortfall as at March 31, 2023.

` Crore
As at As at
March 31, 2023 March 31, 2022
Plan assets at period end, at fair value 178.17 170.68
Provident Fund Corpus 170.01 168.26

Valuation assumptions under Deterministic Approach:

Weighted Average Yield 8.47% 8.45%
Guaranteed Rate of Interest 8.15% 8.10%

c) Amounts Recognised as Expense:

i) Defined Contribution Plan

Employer’s Contribution to Provident Fund including contribution to Family Pension Fund amounting to
` 11.77 crore (Mar-31-2022 : ` 12.72 crore) has been included under Contribution to Provident and Other
Funds.

ii) Defined Benefit Plan

Gratuity cost amounting to ` 8.25 crore (Mar-31-2022 : ` 16.77crore) has been included in Note 33 under
Contribution to Provident and Other Funds.

392
 Financial Statements | Consolidated

d) The amounts recognised in the Company’s financial statements as at year end are as under:
` Crore
As at As at
March 31, 2023 March 31, 2022
i) Change in Present Value of Obligation
Present value of the obligation at the beginning of the year 111.86 117.71
Plan amendments and curtailments (10.70) (3.16)
Current Service Cost 12.07 12.60
Interest Cost 6.94 7.41
Exchange difference 1.81 2.83
Actuarial (Gain) / Loss on Obligation- Due to Change in Demographic Assumptions 0.05 (1.65)
Actuarial (Gain) / Loss on Obligation- Due to Change in Financial Assumptions (1.60) (4.02)
Actuarial (Gain) / Loss on Obligation- Due to Experience (5.66) (1.82)
Actuarial (Gain) / Loss on Obligation (7.21) (7.49)
Benefits Paid (14.11) (18.04)
Present value of the obligation at the end of the year 100.66 111.86
ii) Change in Plan Assets
Fair value of Plan Assets at the beginning of the year 2.27 0.87
Interest Income 0.06 0.08
Return on plan assets excluding interest income (0.07) (0.02)
Contributions by the Employer 13.12 19.38
Benefits Paid (14.11) (18.04)
Exchange difference (0.07) -
Fair value of Plan Assets at the end of the year 1.20 2.27
iii) Amounts Recognised in the Balance Sheet:
Present value of Obligation at the end of the year 100.66 111.86
Fair value of Plan Assets at the end of the year 1.20 2.27
Net Liability recognised in the Balance Sheet 99.46 109.59
iv) Amounts Recognised in the Statement of Profit and Loss:
Current Service Cost 12.07 12.60
Plan amendments and curtailments (10.70) (3.16)
Interest Cost / Income on Obligation / Plan assets (net) 6.88 7.33
Net Cost Included in Personnel Expenses 8.25 16.77
v) Recognised in other comprehensive income for the year
Actuarial (Gain) / Loss on Obligation (7.21) (7.49)
Return on plan assets excluding interest income 0.07 0.02
Recognised in other comprehensive income (7.14) (7.47)
vi) Weighted average duration of Present Benefit Obligation 7.91 years 8.26 years
vii) Estimated contribution to be made in next financial year 9.87 12.25
viii) Major categories of Plan Assets as a % of total Plan Assets
Insurer Managed Funds 100% 100%
ix) Actuarial Assumptions
i) Discount Rate 6.50%-17.75%p.a 6.41%-13.5%p.a
ii) Salary Escalation Rate 5% p.a.-17%p.a 6% p.a.-12.8%p.a
iii) Mortality for geographies: India Indian Assured Lives Mortality (2006-
08) Ultimate
Indonesia As per Indonesian Mortality Table
2011 (TMI11)
Nigeria Rates published in the A49/52
Ultimate Tables, published jointly by
the Institute and Faculty of Actuaries
in the UK, rated down by one year to
reflect mortality in Nigeria

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

393
 x) Maturity Analysis of Projected Benefit Obligation: From the Fund ` Crore
As at As at
March 31, 2023 March 31, 2022
Projected Benefits Payable in Future Years From the Date of Reporting
Within the next 12 months 12.57 14.48
2nd Following Year 10.80 11.61
3rd Following Year 23.56 28.88
4th Following Year 22.74 28.56
5th Following Year 22.16 10.95
Sum of Years 6 to 10 70.10 67.27

xi) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

` Crore
31-Mar-23 31-Mar-22
Increase Decrease Increase Decrease
Discount rate (1% movement) (6.71) 7.81 (7.28) 8.48
Future salary growth (1% movement) 7.76 (6.72) 8.41 (7.29)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.

Other details

Methodology Adopted for ALM Projected Unit Credit Method

Usefulness and Methodology adopted for Sensitivity analysis is an analysis which will give the movement in liability if the
Sensitivity analysis assumptions were not proved to be true on different count. This only signifies
the change in the liability if the difference between assumed and the actual is
not following the parameters of the sensitivity analysis.
Comment on Quality of Assets Since investment is with insurance company, Assets are considered to be
secured.

394
 Financial Statements | Consolidated

Note 45 : Employee Stock Benefit Plans

I. Employee Stock Grant Scheme

a) The Company set up the Employees Stock Grant Scheme 2011 (ESGS) pursuant to the approval by the
Shareholders on March 18, 2011.

b) The ESGS Scheme is effective from April 1, 2011, (the “Effective Date”) and shall continue to be in force until
(i) its termination by the Board or (ii) the date on which all of the shares to be vested under Employee Stock
Grant Scheme 2011 have been vested in the Eligible Employees and all restrictions on such Stock Grants
awarded under the terms of ESGS Scheme, if any, have lapsed, whichever is earlier.

c) The Scheme applies to the Eligible Employees of the Company or its Subsidiaries. The entitlement of each
employee will be decided by the Compensation Committee of the Company based on the employee’s
performance, level, grade, etc.

d) The total number of Stock Grants to be awarded under the ESGS Scheme are restricted to 2,500,000 (Twenty
Five Lac) fully paid up equity shares of the Company. Not more than 500,000 (Five Lac) fully paid up equity
shares or 1% of the issued equity share capital at the time of awarding the Stock Grant, whichever is lower,
can be awarded to any one employee in any one year.

e) The Stock Grants shall vest in the Eligible Employees pursuant to the ESGS Scheme in the period of 1 to 5
years subject to conditions as may be decided by the Compensation Committee andthe Eligible Employee
continues to be in employment of the Company or the Subsidiary company as the case may be.

f) The Eligible Employee shall exercise her / his right to acquire the shares vested in her / him all at one
time within 1 month from the date on which the shares vested in her / him or such other period as may be
determined by the Compensation Committee.

g) The Exercise Price of the shares has been fixed at ` 1 per share. The fair value is treated as Employee
Compensation Expenses and charged to the Statement of Profit and Loss. The value of the options is treated
as a part of employee compensation in the financial statements and is amortised over the vesting period.

h) The details of the scheme are as below:

Scheme Grant Date No. of Vesting Exercise Price Weighted Exercise

Options Condition (`) per share average period
Exercise Price
(`) per share
Employees Stock From 2011 to 2,004,880 Vested in the 1.00 1.00 within 1 month
Grant Scheme 2011 2022 period of 1 to from the date
5 years subject of vesting
to conditions.

395
 Movement in the number of share options during the year:
As at As at
Particulars
March 31, 2023 March 31, 2022
Outstanding at the beginning of the year 616,102 187,421
Add: Granted during the year 529,432 578,514
Less: Exercised during the year 114,239 94,806
Less: Forfeited/ lapsed during the year 41,060 55,027
Outstanding at the end of the year 990,235 616,102

Weighted average remaining contractual life of options as at 31st March, 2023 was 2.48 years (31-Mar-22:
2.97 years).

Weighted average equity share price at the date of exercise of options during the year was ` 824.69 (31-Mar-
22 ` 958.87).

The fair value of the employee share options has been measured using the Black-Scholes formula. The
following assumptions were used for calculation of fair value of grants:

As at As at
Particulars
March 31, 2023 March 31, 2022
Risk-free interest rate (%) 6.36% 5.34%
Expected life of options (years) 2.58 3.65
Expected volatility (%) 35.72% 34.73%
Dividend yield 0.00% 0.00%
The price of the underlying share in market at the time of option grant (₹) 900.15 977.30

II. Pursuant to SEBI notification dated January 17, 2013, no further securities of the Company will be purchased from
the open market.

Note 46 : Disclosure U/S 186 (4) of the Companies Act, 2013

Details of Investments made are disclosed under Note 7 and 13 and details of corporate guarantees given to banks on
behalf of other body corporates are disclosed under Note 41.

Note 47 : Subsequent Events

Subsequent to 31st March, 2023, the Group has acquired consumer care business for a consideration of `2,825 crores
from Raymonds Consumer Care Limited. No impact of the said acquisition has been given in these financial statements
as this is a non adjusting event.

Apart from above there are no significant subsequent events that would require adjustments or disclosures in the
consolidated financial statements.

396
 Financial Statements | Consolidated

Note 48 : Financial Instruments

A. Accounting classification and fair values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy, are presented below. It does not include the fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

` Crore
As at March 31, 2023 Carrying amount / Fair Value Fair value Hierarchy
FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non Current
Investments
Investments in Government Bonds - - 640.25 640.25 640.25 - - 640.25
Investments in Target Mutual fund - - 199.08 199.08 199.08 - - 199.08
Loans - - 0.03 0.03 - - - -
Other Financial Assets - - 21.61 21.61 - - - -
Current
Investments
Deposits with Non-Banking
- - 175.27 175.27 - 175.27 - 175.27
Financial Companies
Investments in Commercial Papers 342.02 342.02 342.02 - - 342.02
Investments in Mutual Fund 943.99 - - 943.99 943.99 - - 943.99
Non-convertible Debentures with
- - 728.37 728.37 728.37 - - 728.37
Non-Banking Financial Companies
Trade receivables - - 1,245.28 1,245.28 - - - -
Cash and cash equivalents - - 357.62 357.62 - - - -
Bank balances others - - 33.10 33.10 - - - -
Loans - - 0.05 0.05 - - - -
Derivative Asset
Interest Rate Swap used for hedging - - - - - - - -
Cross Currency Interest Rate Swap
- 0.46 - 0.46 - 0.46 - 0.46
used for hedging
Forward contract used for hedging 1.03 - - 1.03 - 1.03 - 1.03
Others - - 40.82 40.82 - - - -
945.02 0.46 3,783.50 4,728.98 2,853.71 176.76 - 3,030.47
Financial liabilities
Non-Current
Borrowings - - 189.12 189.12 - - - -
Lease Liability - - 57.61 57.61 - - - -
Current
Borrowings - - 844.84 844.84 - - - -
Trade and other payables - - 1,823.17 1,823.17 - - - -
Put Option Liability * - - - 81.08 - - 81.08 81.08
Derivative liability
Interest Rate Swap used for hedging - - - - - - - -
Cross Currency Interest Rate Swap
- 11.95 - 11.95 - 11.95 - 11.95
used for hedging
Forward contract used for hedging 0.08 0.08 0.08
Lease Liability - - 38.01 38.01 - - - -
Others - - 173.28 173.28 - - - -
- 12.03 3,126.03 3,219.14 - 12.03 81.08 93.03

397
 A. Accounting classification and fair values (contd) ` Crore

Carrying amount / Fair Value Fair value Hierarchy

As at March 31, 2022 FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Non Current
Investments
Investments in Government Bonds - - 145.92 145.92 145.92 - - 145.92
Deposits with Non-Banking
- - 25.20 25.20 - 25.20 - 25.20
Financial Companies
Loans - - 0.03 0.03 - - - -
Other Financial Assets - - 25.09 25.09 - - - -
Current - -
Deposits with Non-Banking
- - 277.63 277.63 - 277.63 - 277.63
Financial Companies
Investments in Commercial Papers - - 49.98 49.98 49.98 - - 49.98
Mutual Fund 389.51 - - 389.51 389.51 - - 389.51
Non-convertible Debentures with
- - 127.19 127.19 127.19 - - 127.19
Non-Banking Financial Companies
Trade receivables - - 1,116.32 1,116.32 - - - -
Cash and cash equivalents - - 750.92 750.92 - - - -
Bank balances others 356.85 356.85 - - - -
Loans - - 0.05 0.05 - - - -
Derivative Asset
Interest Rate Swap used for
0.26 0.26 - 0.26 - 0.26
hedging
Cross Currency Interest Rate Swap
- - - - - - - -
used for hedging
Forward contract used for
0.11 - 0.11 - 0.11 - 0.11
hedging
Others - - 41.46 41.46 - - - -
389.62 0.26 2,916.64 3,306.52 712.60 303.20 - 1,015.80
Financial liabilities
Non-Current
Borrowings - - 380.85 380.85 - - - -
Lease Liability - - 64.44 64.44
Current - -
Borrowings - - 1,226.81 1,226.81 - - - -
Trade and other payables - - 2,163.06 2,163.06 - - - -
Put Option Liability * - - - 50.83 - - 50.83 50.83
Derivative liability
Interest Rate Swap used for
- 0.54 - 0.54 - 0.54 - 0.54
hedging
Cross Currency Interest Rate Swap
- - - - - - - -
used for hedging
Forward contract used for
7.64 - - 7.64 - 7.64 - 7.64
hedging
Lease Liability 32.24 32.24 - - - -
Others - - 168.22 168.22 - - - -

7.64 0.54 4,035.62 - 8.18 50.83 59.01

4,094.63

Level - 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level - 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)

398
 Financial Statements | Consolidated

Level - 3 : Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

* The put option liability is fair valued at each reporting date through equity

NOTE: The group has not disclosed fair values of financial instruments other than mutual funds, deposits with
non-banking financial companies, non-convertible debentures with non-banking financial companies, investment in
commercial papers, derivative asset, derivative liability and liabilities for business combinations, because the carrying
amounts are a reasonable approximation of fair value.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 1, Level 2 and Level 3 fair values, as
well as the significant unobservable inputs used.

Financial instruments measured at fair value

Type Valuation technique Significant Inter-relationship between

unobservable inputs significant unobservable
inputs and fair value
measurement
Mutual Fund Investments NAV quoted by the Mutual NA NA
Fund
Investments in Non Broker Quote NA NA
Convertible Debenture
with Non-Banking Financial
Companies
Investments in Target Broker Quote NA NA
Maturity Fund
Deposits with Non-Banking Present Value of expected NA NA
Financial Companies cashflows using an appropriate
discounting rate
Commercial Paper issued by Present Value of expected NA NA
the Company cashflows using an appropriate
discounting rate
Derivative Asset MTM from banks NA NA
Derivative Liability MTM from banks NA NA
Put Option Liability Performance of the business Inputs are given below Next page for inter-
relationship between
significant inputs
and fair value measurement
given below

Level 3 fair values

Reconciliation of Level 3 fair values

399
 The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values:

` Crore
As at As at
Particulars
March 31, 2023 March 31, 2022
Opening Balance 50.83 163.88
Net change in fair value through reserves 37.38 54.89
Net change in liability due to payments (11.82) (172.36)
Exchange difference 4.69 4.42
Closing Balance 81.08 50.83

Valuation processes

The main level 3 inputs for put option evaluated as follows :

Put Option Liability - The key inputs used in the determination of fair value of put option liability is performance of the
business such as Profit.

Sensitivity analysis

For the fair values of put option liability , reasonably possible changes at the reporting date to one of the significant
unobservable inputs, holding other inputs constant, would have the following effects.

Put Option Liability ` Crore

Year ended March 31, 2023
Equity impact
Significant unobservable inputs 10% Increase 10% Decrease
Achievement of financial target (10% movement) (8.11) 8.11

Year ended March 31, 2022

Equity impact
Significant unobservable inputs 10% Increase 10% Decrease
Achievement of financial target (10% movement) (5.08) 5.08

Note 49 : Financial Risk Management

The activities of the Group exposes it to a number of financial risks – market risk, credit risk and liquidity risk. The
Group seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance.
The risk management policy which is approved by the Board, is closely monitored by the senior management.

A. Management Of Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of three types of risks: currency rate risk, interest rate risk and
price risk. Financial instruments affected by market risk includes borrowings, trade receivables and payables, bank
deposits, investments and derivative financial instruments. The Group has international operations and is exposed
to a variety of market risks, including currency and interest rate risks.

400
 Financial Statements | Consolidated

(i) Management of price risk:

The Group invests its surplus funds in various debt instruments including liquid and short term schemes of
debt mutual funds, deposits with banks and financial institutions, commercial papers and non-convertible
debentures (NCD’s). Investments in mutual funds and NCD’s are susceptible to market price risk, arising from
changes in interest rates or market yields which may impact the return and value of the investments. This risk
is mitigated by the Group by investing the funds in various tenors depending on the liquidity needs of the
Company.

(ii) Management of currency risk:

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Group has foreign currency trade payables , trade receivables,
borrowings and bank balances and is therefore exposed to foreign exchange risk. The Group mitigates
the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures
and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The
exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence
the operating results and financials of the Group may be impacted due to volatility of the functional currency
against foreign currencies.

Exposure to currency risk (Exposure in different currencies converted to INR)

The currency profile of financial assets and financial liabilities as at March 31, 2023 and March 31, 2022 are as
below:

` Crore
As at March 31, 2023 GBP USD EURO ZAR Others
Financial assets
Cash and cash equivalents - 77.17 - 0.74 1.02
Short-term loans and advances - - - - -
Trade and other receivables 0.32 209.71 29.01 0.62 -
Less: Forward contracts for trade receivables - (77.25) - - -
Other Non-Current financial assets - 1.15 - - -
Other Current financial assets - 4.04 - - -
0.32 214.82 29.01 1.36 1.02
Financial liabilities
Long term borrowings - - - - -
Short term borrowings - 22.27 - - -
Trade and other payables - 255.52 0.02 - 1.08
Less: Forward contracts for trade payables - (92.87) - - -
Other Current financial liabilities - - - - -
- 184.92 0.02 - 1.08
Net Exposure 0.32 29.90 28.99 1.36 (0.06)

401
 ` Crore
As at March 31, 2022 GBP USD EURO ZAR Others
Financial assets
Cash and cash equivalents - 46.68 0.01 0.63 1.10
Short-term loans and advances - 2.17 - - -
Trade and other receivables 0.63 212.89 31.52 1.22 -
Less: Forward contracts for trade receivables - (72.04) (16.84) - -
Other Non-Current financial assets - 4.78 - - -
Other Current financial assets - 4.97 - - -
0.63 199.45 14.69 1.85 1.10
Financial liabilities
Long term borrowings - 2.27 - - -
Short term borrowings - 1.60 - - -
Trade and other payables (0.14) 394.19 27.82 - 1.16
Less: Forward contracts for trade payables - (122.38) - - -
Other Current financial liabilities - 0.02 - - -
(0.14) 275.70 27.82 - 1.16
Net Exposure 0.77 (76.25) (13.13) 1.85 (0.06)

The following significant exchange rates have been applied during the year.
Year-end spot rate
March 31, 2023 March 31, 2022
GBP INR 101.64 99.43
USD INR 82.18 75.99
EUR INR 89.47 84.24
ZAR INR 4.63 5.22

Sensitivity analysis

A reasonably possible 5% strengthening (weakening) of GBP/USD/EURO/ZAR/CNH/KWD/SGD/MYR against the

India rupee at March 31, 2023 and March 31, 2022 would have affected the measurement of financial instruments
denominated in GBP/USD/EURO/ZAR/CNH/KWD/SGD/MYR and affected profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any
impact of forecast sales and purchases.

` Crore
Profit or loss
Effect in INR Strengthening Weakening
March 31, 2023
GBP 0.02 (0.02)
USD 1.50 (1.50)
EURO 1.45 (1.45)
ZAR 0.07 (0.07)
Others - CNH/SGD/MYR (0.00) 0.00
3.03 (3.03)

` Crore
Profit or loss
Effect in INR Strengthening Weakening
March 31, 2022
GBP 0.04 (0.04)
USD (3.81) 3.81
EURO (0.66) 0.66
ZAR 0.09 (0.09)
Others - CNH/KWD (0.00) 0.00
(4.34) 4.34

402
 Financial Statements | Consolidated

(iii) Management of interest risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates.

Exposure to interest rate risk

The Group’s exposure to interest rate risks relates primarily to the Group’s interest obligations on its borrowings.
To mitigate this risk the Group enters into derivative financial instruments like interest rate swaps.

The interest rates profile of the Group’s interest bearing financial instruments is as follows:

` Crore
As at As at
March 31, 2023 March 31, 2022
Borrowings
Fixed rate instruments 93.81 302.82
Variable-rate instruments 940.15 1,304.84
1,033.96 1,607.66

Fair value sensitivity analysis for fixed-rate instruments

The Group does not account for any fixed-rate financial liabilities at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 50 basis points (bp) in interest rate at the reporting date would have increased /
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular foreign currency exchange rates, remain constant.

The risk estimates provided assume a parallel shift of 50 basis points interest rate across all yield curves. This
calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk
exposures outstanding as at that date. The period end balances are not necessarily representative of the average
debt outstanding during the period.

` Crore
Profit or loss / Equity
50 bp increase 50 bp decrease
As at March 31, 2023
Variable-rate instruments (4.70) 4.70
Less : Interest-rate swap on Variable rate instrument - -
Cash flow sensitivity (net) (4.70) 4.70

As at March 31, 2022

Variable-rate instruments (6.52) 6.52
Less : Interest-rate swap on Variable rate instrument 1.68 (1.68)
Cash flow sensitivity (net) (4.84) 4.84

403
 B. Management of Credit Risk:

Credit risk refers to the risk of default on its obligations by a counterparty to the Group resulting in a financial loss
to the Group. The Group is exposed to credit risk from its operating activities (trade receivables and derivative
transactions) and from its investing activities including investments in mutual funds, commercial papers, deposits
with banks and financial institutions and NCD’s, foreign exchange transactions and financial instruments.

Credit risk from trade receivables is managed by each business unit subject to the Group’s policies, procedures
and controls relating to customer credit risk management by establishing credit limits, credit approvals and
monitoring creditworthiness of the customers to which the Group extends credit in the normal course of business.
Outstanding customer receivables are regularly monitored. The Group has no concentration of credit risk as the
customer base is widely distributed.

Credit risk from investments of surplus funds is managed by the Group’s treasury in accordance with the Board
approved policy and limits. Investments of surplus funds are made only with those counterparties who meet the
minimum threshold requirements prescribed by the Board. The Group monitors the credit ratings and financial
strength of its counter parties and adjusts its exposure accordingly. Derivatives are entered into with banks as
counter parties, which have high credit ratings assigned by rating agencies.

Loans and advances given are monitored by the Group on a regular basis and these are neither past due nor
impaired.

Management believes that the unimpaired amounts that are past due are still collectible in full, based on historical
payment behaviour and extensive analysis of customer credit risk, including underlying customers’ credit ratings
if they are available. The Company uses an allowance matrix to measure the expected credit loss of trade
receivables from individual customers which comprise on large number of small balances.

Ageing for trade receivables is disclosed in note 14.

The movement in allowances for impairment in respect of trade receivables is as follows:

` Crore
As at As at
March 31, 2023 March 31, 2022
Opening Balance 59.79 56.79
Impairment loss recognised 11.32 6.58
Amounts written off / written back (1.01) (3.20)
Exchange difference (2.20) (0.38)
Closing Balance 67.90 59.79

C. Management of Liquidity Risk:

Liquidity risk is the risk that the Group may not be able to meet its present and future cash obligations without
incurring unacceptable losses. The Group’s objective is to maintain at all times, optimum levels of liquidity to meet
its obligations. The Group closely monitors its liquidity position and has a robust cash management system. The
Group maintains adequate sources of financing including debt and overdraft from domestic and international
banks and financial markets at optimized cost.

404
 Financial Statements | Consolidated

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are
gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

` Crore
As at March 31, 2023 Contractual cash flows
Carrying Total Less than 1 1-3 years More than
amount year 3 years
Non-derivative financial liabilities
Term loan and overdrafts from banks 1,033.96 1,068.80 869.57 199.23 -
Trade payables 1,823.17 1,823.17 1,823.17 - -
Lease Liability 95.62 110.07 44.12 56.61 9.34
Other financial liabilities 254.44 254.44 254.44 - -
Derivative financial liabilities
Cross Currency Interest Rate Swap used for hedging 11.95 110.81 42.72 68.09 -
Forward exchange contracts used for hedging
- Outflow 0.08 95.33 95.33 - -
- Inflow - 77.25 77.25 - -

` Crore
Contractual cash flows
As at March 31, 2022 Carrying Total Less than 1 1-3 years More than
amount year 3 years
Non-derivative financial liabilities
Term loan and overdrafts from banks 1,607.66 1,620.77 1,234.07 386.70 -
Trade payables 2,163.06 2,163.06 2,163.06 - -
Lease Liability 96.68 107.89 37.30 62.18 8.41
Other financial liabilities 226.69 226.69 226.69 - -
Derivative financial liabilities
Interest rate swaps 0.54 5.12 5.12 - -
Forward exchange contracts used for hedging
- Outflow - 122.38 122.38 - -
- Inflow - 88.88 88.88 - -

Note 50 : Hedge Accounting

The objective of hedge accounting is to represent, in the Group’s financial statements, the effect of the Group’s use
of financial instruments to manage exposures arising from particular risks that could affect profit or loss. As part of its
risk management strategy, the Group makes use of financial derivative instruments namely foreign exchange forward
contracts for hedging the risk embedded in some of its highly probable forecast transaction, interest rate swaps for
hedging the risk of interest rate fluctuation on some of its variable rate loans and cross currency interest rate swaps for
hedging the risk of currency and interest on some of the Floating/Fixed Foreign currency instrument.

For derivative contracts designated as hedge, the Group documents, at inception, the economic relationship between
the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the
hedge and the methods used to assess the hedge effectiveness. The derivative contracts have been taken to hedge
foreign currency risk on highly probable forecast transaction, interest rate risk on variable rate loans and currency &
interest rate risk on Floating/Fixed Foreign currency instrument. The tenor of hedging instrument may be less than or
equal to the tenor of underlying.

405
 Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109
depending upon the type of hedge. The Group applies cash flow hedge accounting to hedge the variability in a) Highly
probable forecast transaction; b) interest payments on variable rate loans and c) Floating/Fixed foreign currency
instrument.

The Group has a Board approved policy on assessment, measurement and monitoring of hedge effectiveness which
provides a guideline for the evaluation of hedge effectiveness, treatment and monitoring of the hedge effective
position from an accounting and risk monitoring perspective. Hedge effectiveness is ascertained at the time of
inception of the hedge and periodically thereafter. The Group assesses hedge effectiveness on prospective basis. The
prospective hedge effectiveness test is a forward looking evaluation of whether or not the changes in the fair value
or cash flows of the hedging position are expected to be highly effective on offsetting the changes in the fair value or
cash flows of the hedged position over the term of the relationship.

Hedge effectiveness is assessed through the application of critical terms match method & dollar off-set method. Any
ineffectiveness in a hedging relationship is accounted for in the statement of profit and loss.

The table below enumerates the Group’s hedging strategy, typical composition of the Group’s hedge portfolio, the
instruments used to hedge risk exposures and the type of hedging relationship:

Sr Type of Hedged item Description of hedging Hedging Description of hedging Type of

No risk/ hedge strategy instrument instrument hedging
position relationship
1 Currency Highly FCY denominated highly Fx forward Forward contracts are Cash flow
risk Probable probable forecast transaction contracts contractual agreements to hedge
forecast is converted into functional buy or sell a specified financial
transaction currency using a plain vanila instrument at a specific price
in Foreign foreign currency forward and date in the future. These are
currency contract. customized contracts transacted
(FCY) in the over–the–counter market.
2 Interest Floating rate Floating rate financial liability Interest Interest rate swap is a derivative Cash flow
rate Risk loans is converted into a fixed rate swap instrument whereby the Group hedge
rate financial liability using a receives at a floating rate in
floating to fixed interest rate return for a fixed rate liability.
swap.
3 Currency Foreign Floating/Fixed Foreign Cross Cross currency - Interest Rate Cash flow
Risk & Currency currency instrument is currency Swap is a derivative instrument hedge
Interest loans converted into Fixed functional - Interest whereby the Group hedges
Rate Risk currency instrument Rate Swap fixed/floating foreign currency
instrument into fixed functional
currency instrument.

406
 Financial Statements | Consolidated

The tables below provide details of the derivatives that have been designated as cash flow hedges for the periods
presented:

For the year ended March 31, 2023 ` Crore

Hedging Instrument Notional Derivative Derivative Gain/(Loss) Change in Ineffectiveness Line item in Amount Line item in
principal Financial Financial due to fair value recognized in profit or loss reclassified profit or loss
amounts Instruments Instruments change in for the year profit or that includes from the affected
outstanding - Assets – Liabilities fair value recognized loss hedge hedge reserve by the
outstanding outstanding for the in OCI ineffectiveness to profit or reclassification
year loss
Foreign 2.56 - 0.08 (0.08) (0.08) - NA NA NA
exchange
forward
contracts (Refer
Note 26)
Previous Year - - - - - - NA NA NA
Interest rate - - - (0.13) (0.13) - NA NA NA
swaps (Refer
Note 17 and
26)
Previous Year 335.10 0.26 0.54 - - - NA NA NA
Cross currency 844.57 0.46 11.95 (21.81) (21.81) - NA NA NA
- Interest Rate
Swap (Refer
Note 17 and
26)
Previous Year - - - - - - NA NA NA

* Loss recognized in Other comprehensive income on hedging instrument amounting to `22.02 crores is offset by gain on hedged item
amounting to `22.44 crores.

The table below provides a profile of the timing of the notional amounts of the Group’s hedging instruments (based on
residual tenor) along with the average price or rate as applicable by risk category:

` Crore
As at March 31, 2023 As at March 31, 2022
Total Less than 1-5 years Over 5 Total Less than 1-5 years Over
1 year years 1 year 5 years
Foreign exchange forward
contracts
Notional principal amount 2.56 2.56 - - - - -
Average price (`) 85.24 85.24 - - - - -

Interest rate swaps

Notional principal amount - - - - 335.10 335.10 - -
Average rate - - - - 1.89% 1.89% 0.00% -

Cross currency - Interest Rate Swap

Notional principal amount 844.57 168.48 676.09 - 335.10 335.10 - -
Average rate 6.03% 10.95% 4.80% - 1.89% 1.89% 0.00% -

407
 The following table provides a reconciliation by risk category of the components of equity and analysis of OCI items
resulting from hedge accounting:

` Crore
Movement in Cash flow hedge Movement in Cash flow hedge
Particulars reserve for the year ended reserve for the year ended
March 31, 2023 March 31, 2022
Opening balance (0.62) (3.46)
Gain / (Loss) on the Effective portion of changes in fair value:
a) Interest rate risk 0.11 2.84
b) Currency risk 0.31 -
Tax on movements on reserves during the year (0.07) -
Closing balance (0.27) (0.62)

Note 51 : Profit on Sale of Investment in Associate

In previous year, the Company divested its entire stake in Bhabani Blunt Hair Dressing Private Limited (Associate
company) on 16th March, 2022, and the right to use the “BBLUNT” brand name to manufacture and sell BBLUNT
branded products business during the year in line with the overall strategy of sharpening the strategic focus on the
core business portfolio. Total consideration received by the Company on closing of the transaction is ` 78.65 cr (net).
As per IND AS 36, the Group reversed impairment of ` 15.38 cr and net gain of ` 39.79 cr was recognised as an
exceptional item.

Note 52 : Goodwill and Other Intangible Assets with indefinite useful life

Goodwill has been allocated to the Group’s CGU as follows:

` Crore
As at As at
Particulars
March 31, 2023 March 31, 2022
India 2.47 2.47
Indonesia 1,759.78 1,611.49
Africa (including SON) 3,519.19 3,251.65
Argentina 342.80 316.96
Others* 198.01 194.22
Total 5,822.25 5,376.79

* Others Include Chile and Srilanka.

Each unit or group of units to which the goodwill is allocated -

a. Represents the lowest level within the entity at which the goodwill is monitored for internal management purpose
and

b. Is not larger than an operating segment as defined in Ind AS 108 Operating Segments, before aggregation.

408
 Financial Statements | Consolidated

The recoverable amount of a CGU is based on its value in use. The value in use is estimated using discounted cash
flows over a period of 5 years for all CGUs except Africa where a 10 year period has been used to recognise the
longer period of faster growth in expected cash flows , before averaging to a lower pace of growth to perpetuity. The
measurement using discounted cash flow is level 3 fair value based on inputs to the valuation technique used. Cash
flows beyond 5 years (10 years in case of Africa CGU) is estimated by capitalising the future maintainable cash flows by
an appropriate capitalisation rate and then discounted using pre tax discount rate.

Indefinite life brands have been allocated to the Group’s CGU as follows:

` Crore
As at As at
Particulars
March 31, 2023 March 31, 2022
India 791.25 791.25
Africa (including SON) 1,536.62 1,426.44
Chile 1.54 1.49
Total 2,329.41 2,219.18

The recoverable amount of the brands are based on its value in use. The value in use is estimated using discounted
cash flows over a period of 5 years. The measurement using discounted cash flow is level 3 fair value based on inputs
to the valuation technique used. Cash flows beyond 5 years is estimated by capitalising the future maintainable cash
flows by an appropriate capitalisation rate and then discounted using pre tax discount rate.

Operating margins and growth rates for the five years (ten years in case of Africa CGU) cash flow projections have
been estimated based on past experience and after considering the financial budgets/ forecasts approved by
management. Other key assumptions used in the estimation of the recoverable amount are set out below. The values
assigned to the key assumptions represent management’s assessment of future trends in the relevant industries and
have been based on historical data from both external and internal sources.

As at January 31, 2023

Particulars (CGU and brands)
Average sales growth Pre Tax discount rate Terminal growth rate
Indonesia 5.0% 11.6% 5.0%
Africa (Including SON) 0% - 13.5% 12% - 20.17% 0% - 8%
Argentina 2.8% - 3% 21.6% 8.0%
Others* 6% - 16% 12.4% - 29.55% 2% - 4%

As at January 31, 2022

Particulars (CGU and brands)
Average sales growth Pre Tax discount rate Terminal growth rate
Indonesia 5.0% 12.2% 5.0%
Africa (Including SON) 0% - 11.3% 8.7%% - 16.2% 0% - 7%
Argentina 1.8% 18.0% 2.0%
Others* 6.3% - 16.9% 12% - 21.5% 3% - 4%

* Others Include India, Chile and Srilanka.

The pre tax discount rate is based on risk free rate, beta variant adjusted for market premium and company specific
risk factors.

409
 Based on impairment test done as at January 31, 2023, Group has concluded that there is no impairment on Goodwill
(March 31, 2022: Nil) and due to the internal and external sources of information there was impairment for indefinite
life intangible assets in Africa (including SON) of `6.03 crore as at March 31, 2023 (March 31, 2022: `53.64 crore) and
Chile (Others) of ` Nil as at March 31, 2023 (March 31, 2022: 6.51 crore (net)). The impairment has been recorded as an
‘Exceptional item’ in the Consolidated Statement of Profit and Loss (refer Note 37).

With regard to the assessment of value in use other than the impairment recorded above, no reasonably possible
change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their
recoverable amount.

Note 53 : Segment Reporting

Description of segments and principal activities:

The Group has identified geographical segments as reportable segments which are as follows:

• Segment-1, India

• Segment-2, Indonesia

• Segment-3, Africa (Including Strength of Nature)

• Segment-4, others

The Chief Operating Decision Maker (“CODM”) evaluates the Group’s performance and allocates resources based on
an analysis of various performance indicators by operating segments. The CODM reviews revenue and profit as the
performance indicator for all of the operating segments.

The group is engaged in manufacturing of personal and home care products.

Information about reportable segments for the year ended March 31, 2023 and March 31, 2022 is as follows:

Year ended March 31, 2023

` Crore
Particulars India Indonesia Africa Others Total
(including
Strength of
Nature)
Segment Revenue 7,667.16 1,653.03 3,414.67 717.83 13,452.69
Add/(Less): Inter segment revenue (91.84) (39.96) (0.77) (4.15) (136.72)
Revenue from Operations 7,575.32 1,613.07 3,413.90 713.68 13,315.97
Segment result 1,874.81 303.02 222.25 30.38 2,430.46
Add/(Less):
Other income 65.92 (0.77) 5.63 1.59 72.37
Depreciation & Amortization (107.98) (18.72) (95.13) (14.46) (236.29)
Interest income 44.95 25.94 4.53 20.62 96.04
Finance costs (Unallocable) - - - - (175.74)
Exceptional items (net) (18.77) (18.21) (7.11) (10.02) (54.11)
Profit Before Tax 2,132.73
Tax expense - - - - (430.27)
Profit After Tax 1,702.46

410
 Financial Statements | Consolidated

Year ended March 31, 2022

` Crore
Particulars India Indonesia Africa Others Total
(including
Strength of
Nature)
Segment Revenue 6,951.56 1,705.19 3,049.74 750.77 12,457.26
Add/(Less): Inter segment revenue (149.34) (26.69) (0.79) (3.94) (180.76)
Revenue from Operations 6,802.22 1,678.50 3,048.95 746.83 12,276.50
Segment result 1,729.29 389.52 184.51 91.79 2,395.11
Add/(Less):
Other income 23.77 0.11 4.52 0.75 29.15
Depreciation & Amortization (85.61) (25.32) (84.72) (14.28) (209.93)
Interest income 36.38 13.71 1.37 9.10 60.56
Finance costs (Unallocable) - - - - (110.16)
Exceptional items (net) 58.21 - (53.64) (11.28) (6.71)
Exceptional items (Unallocable
(3.04)
to segment)
Share of net profits of equity
accounted anvestees (net of 0.28
income tax)
Profit Before Tax - - - - 2,155.26
Tax expense - - - - (371.87)
Profit After Tax 1,783.39

As at As at
Particulars
March 31, 2023 March 31, 2022
Segment Assets
a) India 5,472.44 4,483.55
b) Indonesia 3,450.11 3,204.14
c) Africa (including Strength of Nature) 7,574.23 7,482.11
d) Others 1,115.71 1,078.83
Less: Intersegment Eliminations (113.72) (114.57)
17,498.77 16,134.06
Segment Liabilities
a) India 1,109.48 1,000.51
b) Indonesia 382.09 569.85
c) Africa (including Strength of Nature) 914.93 1,150.57
d) Others 201.77 217.68
Less: Intersegment Eliminations (114.38) (115.65)
2,493.89 2,822.96
Add: Unallocable liabilities 1,210.66 1,755.17
Total Liabilities 3,704.55 4,578.13

411
 Information about major customers:

No Single customer represents 10% or more of the Group’s total revenue for the year ended March 31, 2023 and
March 31, 2022

Capital expenditure ` Crore

Year ended Year ended
Particulars
March 31, 2023 March 31, 2022
a) India 142.38 165.91
b) Indonesia 10.81 10.12
c) Africa (including Strength of Nature) 61.58 88.89
d) Others 9.73 14.82
Total 224.50 279.74

Note 54 : Assets Pledged as Security

The carrying amount of assets pledged as security for current and non-current borrowings are:

` Crore
As at As at
March 31, 2023 March 31, 2022
Current
Financial assets
Floating charge
Trade receivables (Refer Note 14) 3.54 3.00
Total (a) 3.54 3.00

Non Financial assets

First charge
Inventories (Refer Note 12) (b) 14.43 21.14
Total current assets pledged as security (c) = (a) + (b) 17.97 24.14

Non Current
First charge
Plant & Machinery (Refer Note 3) 13.94 15.87
Total non-current assets pledged as security (d) 13.94 15.87

Total assets pledged as security (e) = (c) + (d) 31.92 40.01

412
 Note 55 : Additional Information, as required under Schedule III to the Companies Act, 2013, of
Enterprises Consolidated as Subsidiary/Associates

Net Assets (i.e. total

Share in Profit/Loss Share in Other Share in Total
assets minus total
account comprehensive income (OCI) comprehensive income
liabilities)
Name of the Enterprise
As % of As % of As % of As % of Total
Amount Amount Amount Amount
consolidated consolidated consolidated Comprehensive
(` in crore) (` in crore) (` in crore) (` in crore)
net assets profits OCI Income
Parent
Godrej Consumer Products Limited (India) 68.04% 9,386.02 88.91% 1,513.70 0.19% 1.03 67.16% 1,514.73
Financial Statements | Consolidated

Subsidiaries
Domestic
Godrej Consumer Care Limited 0.07% 10.17 0.02% 0.29 0.01% 0.29
Godrej Consumer Products Limited Employees' Stock Option
0.00% - 0.00% - 0.00% -
Trust
Foreign
Beleza Mozambique LDA 1.70% 234.49 1.93% 32.94 1.46% 32.94
Consell SA 0.00% - 0.00% 0.06 0.00% 0.06
Cosmetica Nacional 1.26% 174.27 -0.16% -2.75 -0.12% -2.75
Charm Industries Limited -0.03% -3.95 -0.28% -4.77 -0.21% -4.77
Canon Chemicals Limited 0.46% 64.13 0.04% 0.62 0.03% 0.62
Darling Trading Company Mauritius Ltd 0.45% 61.91 0.57% 9.68 0.43% 9.68
Deciral SA 0.14% 18.79 0.29% 4.87 0.22% 4.87
DGH Phase Two Mauritius 2.60% 358.05 0.00% -0.04 0.00% -0.04
DGH Tanzania Limited 0.74% 102.76 -0.01% -0.13 -0.01% -0.13
st
DGH Uganda(Liquidated w.e.f 21 Nov 2022) 0.00% - 0.00% - 0.00% -
Frika Weave (PTY) LTD 0.03% 3.69 0.01% 0.12 0.01% 0.12
Godrej Africa Holdings Limited 22.85% 3,151.69 0.89% 15.11 0.67% 15.11
Godrej Consumer Holdings (Netherlands) B.V. 5.77% 796.11 -0.02% -0.26 -0.01% -0.26
Godrej Consumer Investments (Chile) Spa 3.09% 425.98 0.00% -0.02 0.00% -0.02
Godrej Consumer Products (Netherlands) B.V. 0.34% 46.89 -0.03% -0.45 -0.02% -0.45
Godrej Consumer Products Bangladesh Ltd 0.00% -0.17 0.00% -0.02 0.00% -0.02
Godrej Consumer Products Dutch Coöperatief U.A. 6.28% 865.65 0.01% 0.09 0.00% 0.09

413
414
Net Assets (i.e. total
Share in Profit/Loss Share in Other Share in Total
assets minus total
account comprehensive income (OCI) comprehensive income
liabilities)
Name of the Enterprise
As % of As % of As % of As % of Total
Amount Amount Amount Amount
consolidated consolidated consolidated Comprehensive
(` in crore) (` in crore) (` in crore) (` in crore)
net assets profits OCI Income
Godrej Consumer Products Holding (Mauritius) Limited 15.19% 2,095.78 1.89% 32.23 0.03% 0.16 1.44% 32.39
Godrej Consumer Products International (FZCO) 0.25% 34.16 0.87% 14.74 0.65% 14.74
Godrej East Africa Holdings Ltd 4.66% 642.47 -1.93% -32.94 -1.46% -32.94
Godrej Global Mid East FZE 0.23% 31.51 1.46% 24.86 1.10% 24.86
Godrej Holdings (Chile) Limitada 3.65% 503.20 0.00% - 0.00% -
Godrej Household Products (Bangladesh) Pvt. Ltd. -0.09% -12.97 -0.73% -12.38 -0.55% -12.38
Godrej Household Products (Lanka) Pvt. Ltd. 0.06% 7.68 -0.17% -2.86 -0.13% -2.86
Godrej Indonesia IP Holding Ltd. 0.01% 0.86 -0.01% -0.13 -0.01% -0.13
Godrej Mauritius Africa Holdings Ltd. 15.52% 2,140.74 14.58% 248.25 0.02% 0.11 11.01% 248.36
Godrej MID East Holdings Limited 0.01% 1.64 -0.04% -0.70 -0.03% -0.70
Godrej Netherlands B.V. 4.09% 563.65 0.28% 4.74 0.21% 4.74
Godrej Nigeria Limited -0.39% -53.31 -2.43% -41.39 0.00% - -1.84% -41.39
Godrej Peru SAC 0.00% 0.59 -0.02% -0.27 -0.01% -0.27
Godrej SON Holdings INC 12.97% 1,789.44 0.03% 0.54 0.02% 0.54
Godrej South Africa Proprietary Ltd 0.84% 115.60 0.34% 5.73 0.25% 5.73
Godrej Tanzania Holdings Ltd 0.53% 73.20 -0.35% -5.91 -0.26% -5.91
Godrej (UK) Ltd 0.74% 102.36 -0.02% -0.34 -0.02% -0.34
Godrej West Africa Holdings Ltd. 1.07% 147.70 0.23% 3.90 0.17% 3.90
Hair Credentials Zambia Limited 0.08% 11.56 0.44% 7.56 0.34% 7.56
Hair Trading (offshore) S. A. L 1.20% 165.64 4.56% 77.66 3.44% 77.66
Indovest Capital (entity restated again on 24th Feb 2023) 0.01% 1.07 0.00% 0.04 0.00% 0.04
Issue Group Brazil Limited 0.01% 1.28 0.00% 0.07 0.00% 0.07
Kinky Group (Pty) Limited 0.22% 29.67 0.07% 1.14 0.05% 1.14
Laboratoria Cuenca S.A 0.97% 133.64 3.54% 60.26 2.67% 60.26
Lorna Nigeria Ltd. 0.92% 126.65 -0.93% -15.84 -0.70% -15.84
Old Pro International Inc 1.10% 151.30 0.00% - 0.00% -
Panamar Producciones S.A. 0.00% 0.27 0.00% - 0.00% -
 Net Assets (i.e. total
Share in Profit/Loss Share in Other Share in Total
assets minus total
account comprehensive income (OCI) comprehensive income
liabilities)
Name of the Enterprise
As % of As % of As % of As % of Total
Amount Amount Amount Amount
consolidated consolidated consolidated Comprehensive
(` in crore) (` in crore) (` in crore) (` in crore)
net assets profits OCI Income
PT Godrej Business Service Indonesia (Earlier named as “”PT
0.12% 16.46 0.08% 1.33 0.06% 1.33
Ekamas Sarijaya””)
PT Indomas Susemi Jaya 0.99% 135.89 0.96% 16.31 0.72% 16.31
PT Godrej Distribution Indonesia 1.55% 213.87 1.60% 27.17 1.20% 27.17
PT Godrej Consumer Products Indonesia (Earlier named as "PT
15.19% 2,094.66 8.73% 148.60 0.80% 4.45 6.79% 153.05
Megasari Makmur")
PT Sarico Indah 0.13% 18.17 0.12% 2.00 0.09% 2.00
Financial Statements | Consolidated

Sigma Hair Industries Limited 0.12% 16.73 0.01% 0.23 0.01% 0.23
Strength of Nature LLC 17.29% 2,385.64 -0.11% -1.85 -0.08% -1.85
Style Industries Limited 0.21% 28.52 -4.08% -69.43 -3.08% -69.43
Subinite (Pty) Ltd. 0.17% 23.13 1.23% 20.90 0.93% 20.90
Weave Ghana Ltd 0.08% 10.75 -2.37% -40.38 -1.79% -40.38
Weave IP Holdings Mauritius Pvt. Ltd. 0.01% 0.97 0.15% 2.55 0.11% 2.55
Weave Mozambique Limitada 0.36% 49.27 0.35% 6.03 0.27% 6.03
Weave Senegal Ltd -0.03% -3.54 0.00% - 0.00% -
Weave Trading Mauritius Pvt. Ltd. 0.01% 0.89 1.40% 23.80 1.06% 23.80
Godrej CP Malaysia SDN. BHD 0.00% - 0.00% - 0.00%

Adjustment arising out of consolidation 98.96% 547.30 24.27% 547.30

Eliminations -113.81% (15,699.04) -21.90% (372.80) 0.00% 0.00 -16.53% (372.80)

Grand Total 100.00% 13794.23 100.00% 1702.46 100.00% 553.05 100.00% 2255.51

415
 Note 56 : Utilisation of Borrowed Funds and Share Premium

a. To the best of our knowledge and belief, no funds have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company or its
subsidiary company incorporated in India to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (ultimate
beneficieries) by or on behalf of the Company or its subsidiary company incorporated in India or provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b. To the best of our knowledge and belief, no funds have been received by the Company or its subsidiary company
incorporated in India from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company or its subsidiary incorporated in India
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (ultimate
beneficieries) by or on behalf of the Funding Party or provide any guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries.

Note 57 : Struck off Companies

Relationship with struck off companies

Transactions Balance Relationship

Nature of
Name of struck off company during the year outstanding as at with the Struck
transactions
March 31, 2023 March 31, 2023 off company

3H Health And Hygiene Pvt. Ltd Payables - - Vendor

Shakun & CO (Services) Pvt. Ltd Payables - - Vendor
* amounts less than ` 0.01 crore

Transactions Balance Relationship with

Nature of
Name of struck off company during the year outstanding as at the Struck off
transactions
March 31, 2022 March 31, 2022 company
3H Health And Hygiene Pvt. Ltd Payables 0.02 - Vendor

416
 Financial Statements | Consolidated

Note 58 : Details of Subsidiaries and Associate

The companies considered in the consolidated financial statements are :

Ownership interest held by the

Country of Group
Name of the subsidiaries
Incorporation
March 31, 2023 March 31, 2022
Godrej Consumer Care Limited (w.e.f. January 4, 2022) India 100% 100%
Godrej Consumer Products Limited Employees' Stock Option Trust India 100% 100%
Godrej Household Products (Lanka) Pvt. Ltd. Srilanka 100% 100%
Godrej South Africa Proprietary Ltd South Africa 100% 100%
Godrej Consumer Products Bangladesh Ltd Bangladesh 100% 100%
Godrej Household Products (Bangladesh) Pvt. Ltd. Bangladesh 100% 100%
Belaza Mozambique LDA Mozambique 100% 100%
Consell SA (under voluntary Liquidation) Argentina 100% 100%
Cosmetica Nacional Chile 100% 100%
Charm Industries Limited Kenya 100% 100%
Canon Chemicals Limited Kenya 100% 100%
Darling Trading Company Mauritius Ltd Mauritius 100% 100%
Deciral SA Uruguay 100% 100%
DGH Phase Two Mauritius Mauritius 100% 100%
DGH Tanzania Limited Mauritius 100% 100%
DGH Uganda(Liquidated w.e.f 21st Nov 2022) Mauritius 0% 100%
Frika Weave (PTY) LTD South Africa 100% 100%
Godrej Africa Holdings Limited Mauritius 100% 100%
Godrej Consumer Holdings (Netherlands) B.V. Netherlands 100% 100%
Godrej Consumer Investments (Chile) Spa Chile 100% 100%
Godrej Consumer Products (Netherlands) B.V. Netherlands 100% 100%
Godrej Consumer Products Dutch Coöperatief U.A. Netherlands 100% 100%
Godrej Consumer Products Holding (Mauritius) Limited Mauritius 100% 100%
Godrej Consumer Products International (FZCO) Dubai 100% 100%
Godrej East Africa Holdings Ltd Mauritius 100% 100%
Godrej Global Mid East FZE Sharjah 100% 100%
Godrej Holdings (Chile) Limitada Chile 100% 100%
Godrej Indonesia IP Holding Ltd. Mauritius 100% 100%
Godrej Mauritius Africa Holdings Ltd. Mauritius 100% 100%
Godrej MID East Holdings Limited Dubai 100% 100%
Godrej Netherlands B.V. Netherlands 100% 100%
Godrej Nigeria Limited Nigeria 100% 100%
Godrej Peru SAC (under voluntary liquidation) Peru 100% 100%
Godrej SON Holdings INC USA 100% 100%
Godrej Tanzania Holdings Ltd Mauritius 100% 100%
Godrej (UK) Ltd UK 100% 100%
Godrej West Africa Holdings Ltd. Mauritius 100% 100%
Hair Credentials Zambia Limited Zambia 100% 100%
Hair Trading (offshore) S. A. L Lebanon 100% 100%
Indovest Capital (entity restated again on 24th Feb 2023) Labuan 100% 0%
Issue Group Brazil Limited Brazil 100% 100%

417
 Ownership interest held by the
Country of Group
Name of the subsidiaries
Incorporation
March 31, 2023 March 31, 2022
Kinky Group (Pty) Limited South Africa 100% 100%
Laboratoria Cuenca S.A Argentina 100% 100%
Lorna Nigeria Ltd. Nigeria 100% 100%
Old Pro International Inc USA 100% 100%
Panamar Producciones S.A. (under voluntary liquidation) Argentina 100% 100%
PT Godrej Business Service Indonesia (Earlier named as “PT Ekamas
Indonesia 100% 100%
Sarijaya”)
PT Indomas Susemi Jaya Indonesia 100% 100%
PT Godrej Distribution Indonesia Indonesia 100% 100%
PT Godrej Consumer Products Indonesia (Earlier named as "PT Megasari
Indonesia 100% 100%
Makmur")
PT Sarico Indah Indonesia 100% 100%
Sigma Hair Industries Limited Tanzania 100% 100%
Strength of Nature LLC USA 100% 100%
Style Industries Limited Kenya 100% 100%
Subinite (Pty) Ltd. South Africa 100% 100%
Weave Ghana Ltd Ghana 100% 100%
Weave IP Holdings Mauritius Pvt. Ltd. Mauritius 100% 100%
Weave Mozambique Limitada Mozambique 100% 100%
Weave Senegal Ltd Senegal 100% 100%
Weave Trading Mauritius Pvt. Ltd. Mauritius 100% 100%
Godrej CP Malaysia SDN. BHD Malaysia 100% 100%

Note 59 : General
All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest crore
with 2 decimal places as per the requirements of Schedule III, unless otherwise stated.

As per our Report of even date attached For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm Regn No. 101248W/W-100022
Nisaba Godrej Sudhir Sitapati
Executive Chairperson Managing Director and CEO
DIN: 00591503 DIN : 09197063

Vijay Mathur Sameer Shah Rahul Botadara

Partner Chief Financial Officer Company Secretary and
M.No. 046476 Compliance Officer
Mumbai: May 10, 2023

418
 Form AOC-I
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amounts in `)

` Crore
Reporting currency
Date when and Exchange rate as
Profit Provision Profit % of
Sl. Name of the subsidiary on the last date of the Share Reserves Total Total Proposed
Reporting period Investments Turnover before for after share
No. Subsidiary was relevant Financial year capital & surplus assets Liabilities Dividend
taxation taxation taxation holding
acquired in the case of foreign
Financial Statements | Consolidated

subsidiaries
Reporting Exchange
Currency rate
Godrej Consumer 01-Apr-2022 To
1 04-01-2022 INR 1.00 10.000 0.170 10.180 0.010 0.000 0.370 0.290 0.000 0.290 - 100%
Care Limited 31-Mar-2023
Godrej Consumer
Products Limited 01-Apr-2022 To
2 07-03-2007 INR 1.00 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 - 100%
Employees' Stock 31-Mar-2023
Option Trust
Beleza Mozambique 01-Apr-2022 To
3 10/13/2011 MZN 1.28 15.890 218.600 251.480 16.990 0.000 422.500 32.940 0.000 32.940 - 100%
LDA 31-Mar-2023
Consell SA 01-Apr-2022 To
4 02-06-2010 ARS 0.39 0.110 (0.110) 0.000 0.000 0.000 0.060 0.060 0.000 0.060 - 100%
(Argentina) 31-Mar-2023
01-Apr-2022 To
5 Cosmetica Nacional 20-04-2012 CPeso 0.10 133.830 40.430 224.390 50.120 0.000 164.530 (3.760) (1.020) (2.750) - 100%
31-Mar-2023
Charm Industries 01-Apr-2022 To
6 09-09-2014 KES 0.62 0.620 (4.570) 4.040 7.990 0.000 1.060 (4.770) 0.000 (4.770) - 100%
Limited 31-Mar-2023
Canon Chemicals 01-Apr-2022 To
7 05-05-2016 KES 0.62 8.390 55.740 78.840 14.710 0.000 118.700 0.920 0.300 0.620 - 100%
Limited 31-Mar-2023
Darling Trading
01-Apr-2022 To
8 Company Mauritius 22-01-2015 USD 82.18 8.220 53.690 62.190 0.280 8.220 10.970 10.590 0.910 9.680 - 100%
31-Mar-2023
Ltd
01-Apr-2022 To
9 Deciral SA 02-06-2010 ARS 0.39 9.650 9.150 27.870 9.080 0.000 23.790 5.720 0.850 4.870 - 100%
31-Mar-2023
DGH Phase Two 01-Apr-2022 To
10 09-05-2012 USD 82.18 327.670 30.380 411.810 53.760 427.120 2.560 0.470 0.510 (0.040) - 100%
Mauritius 31-Mar-2023
DGH Tanzania 01-Apr-2022 To
11 06-12-2012 USD 82.18 104.190 (1.430) 102.820 0.060 61.640 0.000 (0.130) 0.000 (0.130) - 100%
Limited 31-Mar-2023
01-Apr-2022 To
12 DGH Uganda 31-01-2017 UGX 82.18 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 - 100%
31-Mar-2023
Frika Weave (PTY) 01-Apr-2022 To
13 06-01-2015 ZAR 4.63 5.130 (1.440) 3.690 0.000 0.000 0.200 0.170 0.050 0.120 - 100%
LTD 31-Mar-2023
Godrej Africa 01-Apr-2022 To
14 19-01-2015 USD 82.18 2943.110 208.580 3151.750 0.060 3151.570 15.250 15.110 0.000 15.110 - 100%
Holdings Limited 31-Mar-2023

419
420
` Crore
Reporting currency
Date when and Exchange rate as
Profit Provision Profit % of
Sl. Name of the subsidiary on the last date of the Share Reserves Total Total Proposed
Reporting period Investments Turnover before for after share
No. Subsidiary was relevant Financial year capital & surplus assets Liabilities Dividend
taxation taxation taxation holding
acquired in the case of foreign
subsidiaries
Reporting Exchange
Currency rate
Godrej Consumer
01-Apr-2022 To
15 Holdings 31-03-2010 USD 82.18 0.210 795.900 804.720 8.610 795.050 18.390 (0.260) 0.000 (0.260) - 100%
31-Mar-2023
(Netherlands) B.V.
Godrej Consumer
01-Apr-2022 To
16 Investments (Chile) 28-03-2012 USD 82.18 444.910 (18.920) 426.010 0.030 426.000 0.000 (0.020) 0.000 (0.020) - 100%
31-Mar-2023
Spa
Godrej Consumer
01-Apr-2022 To
17 Products 31-03-2010 USD 82.18 0.190 46.700 46.960 0.070 46.880 0.000 (0.450) 0.000 (0.450) - 100%
31-Mar-2023
(Netherlands) B.V.
Godrej Consumer
01-Apr-2022 To
18 Products 13-04-2010 Taka 0.77 0.040 (0.210) 0.040 0.210 0.000 0.000 (0.020) 0.000 (0.020) - 100%
31-Mar-2023
Bangladesh Limited
Godrej Consumer
Products Dutch 01-Apr-2022 To
19 24-03-2010 USD 82.18 729.280 136.370 865.960 0.310 865.560 0.000 (0.170) (0.260) 0.090 - 100%
Coöperatief U.A. 31-Mar-2023
(Netherlands)
Godrej Consumer
01-Apr-2022 To
20 Products Holding 23-04-2010 USD 82.18 1542.950 552.830 2096.700 0.920 1453.290 34.230 33.040 0.810 32.230 - 100%
31-Mar-2023
(Mauritius) Limited
Godrej Consumer
01-Apr-2022 To
21 Products 28-02-2017 USD 82.18 8.220 25.940 543.090 508.930 0.000 662.020 14.740 0.000 14.740 - 100%
31-Mar-2023
International (FZCO)
Godrej East Africa 01-Apr-2022 To
22 20-07-2012 USD 82.18 923.840 (281.370) 1593.200 950.730 1593.150 0.000 (32.940) 0.000 (32.940) - 100%
Holdings Ltd 31-Mar-2023
Godrej Global Mid 01-Apr-2022 To
23 05-07-2011 AED 22.38 10.260 21.240 68.350 36.840 0.000 170.620 24.860 0.000 24.860 - 100%
East FZE 31-Mar-2023
Godrej Holdings 01-Apr-2022 To
24 29-03-2012 USD 82.18 426.310 76.900 503.250 0.050 503.250 0.000 0.000 0.000 0.000 - 100%
(Chile) Limitada 31-Mar-2023
Godrej Household
Products 01-Apr-2022 To
25 01-04-2010 Taka 0.77 82.660 (95.630) 34.860 47.830 0.000 96.820 (10.770) 1.610 (12.380) - 100%
(Bangladesh) Pvt. 31-Mar-2023
Ltd
Godrej Household
01-Apr-2022 To
26 Products Lanka 01-04-2010 LKR 0.25 18.120 (10.440) 27.290 19.610 0.000 54.590 (3.390) (0.530) (2.860) - 100%
31-Mar-2023
(Pvt.) Ltd.
Godrej Indonesia
01-Apr-2022 To
27 IP Holdings Ltd 17-03-2015 USD 82.18 0.000 0.860 0.920 0.060 0.810 0.000 (0.130) 0.000 (0.130) - 100%
31-Mar-2023
(Mauritius)
Godrej Mauritius 01-Apr-2022 To
28 14-03-2011 USD 82.18 1312.580 828.160 3565.080 1424.340 3154.470 296.390 249.260 1.000 248.250 - 100%
Africa Holdings Ltd. 31-Mar-2023
Godrej MID East 01-Apr-2022 To
29 28-07-2015 USD 82.18 0.810 0.830 1.650 0.010 0.000 0.000 (0.700) 0.000 (0.700) - 100%
Holdings Limited 31-Mar-2023
 ` Crore
Reporting currency
Date when and Exchange rate as
Profit Provision Profit % of
Sl. Name of the subsidiary on the last date of the Share Reserves Total Total Proposed
Reporting period Investments Turnover before for after share
No. Subsidiary was relevant Financial year capital & surplus assets Liabilities Dividend
taxation taxation taxation holding
acquired in the case of foreign
subsidiaries
Reporting Exchange
Currency rate
Godrej Netherlands 01-Apr-2022 To
30 19-10-2005 USD 82.18 5.000 558.650 563.790 0.140 420.960 4.800 4.240 (0.500) 4.740 - 100%
B.V. 31-Mar-2023
Godrej Nigeria 01-Apr-2022 To
31 26-03-2010 Naira 0.18 0.270 (53.580) 104.560 157.870 0.000 234.350 (40.170) 1.220 (41.390) - 100%
Limited 31-Mar-2023
01-Apr-2022 To
32 Godrej Peru SAC 11-04-2017 ARS 0.39 13.580 (12.990) 0.630 0.040 0.000 0.010 (0.270) 0.000 (0.270) - 100%
31-Mar-2023
Godrej SON 01-Apr-2022 To
33 22-03-2016 USD 82.18 1691.320 98.130 2080.290 290.850 2075.290 12.490 0.540 0.000 0.540 - 100%
Holdings INC 31-Mar-2023
Financial Statements | Consolidated

Godrej South Africa 01-Apr-2022 To

34 01-09-2006 ZAR 4.63 8.370 107.230 115.700 0.100 0.000 8.910 7.730 2.000 5.730 - 100%
Proprietary Ltd 31-Mar-2023
Godrej Tanzania 01-Apr-2022 To
35 30-11-2012 USD 82.18 150.590 (77.390) 176.300 103.100 156.620 0.070 (5.890) 0.020 (5.910) - 100%
Holdings Ltd 31-Mar-2023
01-Apr-2022 To
36 Godrej (UK) Ltd 24-10-2005 GBP 101.64 99.960 2.410 102.870 0.510 100.890 4.000 0.030 0.370 (0.340) - 100%
31-Mar-2023
Godrej West Africa 01-Apr-2022 To
37 11-02-2014 USD 82.18 147.690 0.010 147.760 0.060 147.660 4.040 3.900 0.000 3.900 - 100%
Holdings Ltd. 31-Mar-2023
Hair Credentials 01-Apr-2022 To
38 12/23/2015 ZMK 3.85 0.010 11.550 45.920 34.360 0.000 82.650 7.560 0.000 7.560 - 100%
Zambia Limited 31-Mar-2023
Hair Trading 01-Apr-2022 To
39 12/23/2015 USD 82.18 0.160 165.470 175.970 10.330 0.000 240.100 77.670 0.000 77.660 - 100%
(offshore) S. A. L 31-Mar-2023
01-Apr-2022 To
40 Indovest Capital 17-03-2010 USD 82.18 0.100 0.980 1.160 0.090 0.000 0.050 0.040 0.000 0.040 - 100%
31-Mar-2023
Issue Group Brazil 01-Apr-2022 To
41 23-05-2010 ARS 0.39 17.980 (16.700) 3.360 2.080 0.000 0.100 0.070 0.000 0.070 - 100%
Limited 31-Mar-2023
Kinky Group (Pty) 01-Apr-2022 To
42 01-04-2008 ZAR 4.63 0.000 29.670 29.670 0.000 0.000 1.450 1.380 0.230 1.140 - 100%
Limited 31-Mar-2023
Laboratoria Cuenca 01-Apr-2022 To
43 02-06-2010 ARS 0.39 6.340 127.300 238.800 105.160 5.320 321.990 62.830 2.570 60.260 - 100%
S.A 31-Mar-2023
01-Apr-2022 To
44 Lorna Nigeria Ltd. 05-09-2011 Naira 0.18 0.210 126.440 578.650 452.000 0.000 715.140 (7.190) 8.650 (15.840) - 100%
31-Mar-2023
Old Pro International 01-Apr-2022 To
45 28-04-2016 USD 82.18 0.000 151.300 151.300 0.000 0.000 0.000 0.000 0.000 0.000 - 100%
Inc 31-Mar-2023
Panamar 01-Apr-2022 To
46 02-06-2010 ARS 0.39 0.020 0.250 0.270 0.000 0.220 0.000 0.000 0.000 0.000 - 100%
Producciones S.A. 31-Mar-2023
PT Godrej Business
Service Indonesia
01-Apr-2022 To
47 (Earlier named 17-05-2010 IDR 0.01 1.370 15.090 22.210 5.750 12.070 8.830 1.600 0.270 1.330 - 100%
31-Mar-2023
as “”PT Ekamas
Sarijaya””)
PT Indomas Susemi 01-Apr-2022 To
48 17-05-2010 IDR 0.01 1.570 134.310 145.820 9.930 84.770 50.200 20.490 4.180 16.310 - 100%
Jaya 31-Mar-2023
PT Godrej
01-Apr-2022 To
49 Distribution 17-05-2010 IDR 0.01 0.550 213.320 349.480 135.610 0.000 1844.040 35.390 8.230 27.170 - 100%
31-Mar-2023
Indonesia

421
422
` Crore
Reporting currency
Date when and Exchange rate as
Profit Provision Profit % of
Sl. Name of the subsidiary on the last date of the Share Reserves Total Total Proposed
Reporting period Investments Turnover before for after share
No. Subsidiary was relevant Financial year capital & surplus assets Liabilities Dividend
taxation taxation taxation holding
acquired in the case of foreign
subsidiaries
Reporting Exchange
Currency rate
PT Godrej Consumer
Products Indonesia
01-Apr-2022 To
50 (Earlier named 17-05-2010 IDR 0.01 80.360 2014.300 2485.460 390.800 536.220 1419.650 189.560 40.960 148.600 - 100%
31-Mar-2023
as "PT Megasari
Makmur")
01-Apr-2022 To
51 PT Sarico Indah 17-05-2010 IDR 0.01 3.680 14.500 24.230 6.060 7.190 26.700 2.510 0.510 2.000 - 100%
31-Mar-2023
Sigma Hair 01-Apr-2022 To
52 19-12-2012 TZS 0.04 59.050 (42.320) 54.140 37.410 0.000 137.240 0.390 0.150 0.230 - 100%
Industries Limited 31-Mar-2023
Strength of Nature 01-Apr-2022 To
53 28-04-2016 USD 82.18 0.000 2385.640 2541.620 155.980 37.190 637.960 (4.340) (2.490) (1.850) - 100%
LLC 31-Mar-2023
Style Industries 01-Apr-2022 To
54 01-11-2012 KES 0.62 82.300 (53.780) 164.550 136.030 0.000 236.300 (69.430) 0.000 (69.430) - 100%
Limited 31-Mar-2023
01-Apr-2022 To
55 Subinite (Pty) Ltd. 06-09-2011 ZAR 4.63 0.000 23.120 295.330 272.200 0.000 802.180 20.570 (0.320) 20.900 - 100%
31-Mar-2023
01-Apr-2022 To
56 Weave Ghana Ltd 16-09-2014 CEDI 7.08 55.590 (44.830) 73.760 63.010 0.000 153.060 (39.740) 0.640 (40.380) - 100%
31-Mar-2023
Weave IP Holdings 01-Apr-2022 To
57 11-07-2011 USD 82.18 0.020 0.950 1.090 0.120 0.000 3.200 3.000 0.450 2.550 - 100%
Mauritius Pvt. Ltd. 31-Mar-2023
Weave Mozambique 01-Apr-2022 To
58 13-10-2011 MZN 1.28 15.860 33.420 72.260 22.990 0.000 199.950 9.290 3.260 6.030 - 100%
Limitada 31-Mar-2023
01-Apr-2022 To
59 Weave Senegal Ltd 08-04-2016 XOF 0.14 31.890 (35.430) 1.960 5.500 0.000 0.000 0.000 0.000 0.000 - 100%
31-Mar-2023
Weave Trading 01-Apr-2022 To
60 05-07-2011 USD 82.18 0.010 0.880 0.950 0.060 0.160 24.660 24.530 0.740 23.800 - 51%*
Mauritius Pvt. Ltd. 31-Mar-2023
Godrej CP Malaysia 01-Apr-2022 To
61 04-06-2018 MYR 18.61 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 - 100%
SDN. BHD 31-Mar-2023
* Financials of subsidiaries were considered 100% in consolidated financial statements
Names of subsidiaries which are yet to commence operations
Godrej CP Malaysia SDN. BHD
**Names of subsidiaries which have been liquidated or sold during the year:
DGH Ugandal

For and on behalf of the Board of Directors

Nisaba Godrej Sudhir Sitapati Sameer Shah Rahul Botadara

Executive Chairperson Managing Director and CEO Chief Financial Officer Company Secretary and
DIN: 00591503 DIN : 09197063 Compliance Officer

Mumbai: May 10, 2023

This page has been intentionally left blank
Notice of
the AGM
 Godrej Consumer Products Limited

Registered Office: Godrej One, 4th Floor, Pirojshanagar, Eastern Express Highway,
Vikhroli (East), Mumbai - 400 079
Tel.: +91 22 25188010/20/30 Fax: +91 22 25188040
Website: www.godrejcp.com E-mail: [email protected]
CIN: L24246MH2000PLC129806

NOTICE OF THE ANNUAL GENERAL MEETING

NOTICE is hereby given that the SPECIAL BUSINESS RESOLVED FURTHER THAT
23rd ANNUAL GENERAL MEETING the Board of Directors of the
(AGM) of the members of GODREJ To consider and, if thought Company be and is hereby
CONSUMER PRODUCTS LIMITED fit, to pass with or without authorised to perform all such
will be held on Monday, August 7, modification(s) the following acts and take all such steps as
2023, at 5.45 p.m. IST through Video resolutions: may be necessary, proper or
Conferencing (VC)/Other Audio expedient to give effect to this
Visual Means (OAVM) to transact the 4. Ordinary Resolution for the resolution’.
ratification of remuneration
following businesses:
payable to M/s. P. M. 5. Special Resolution for
Nanabhoy & Co. (Firm appointment of Ms. Shalini
ORDINARY BUSINESS
Membership number 000012), Puchalapalli as an Independent
1. To receive, consider and adopt appointed as Cost Auditors Director of the Company.
the audited financial statements of the Company for the fiscal

(standalone and consolidated) year 2023-24. “RESOLVED THAT pursuant to

of the Company for the financial the provisions of Sections 149,

‘RESOLVED THAT pursuant 152 read with Schedule IV and
year ended March 31, 2023 and
to Section 148 and other other applicable provisions,
Report of the Board of Directors
applicable provisions, if any, if any, of the Companies Act,
and Auditor’s Report thereon;
of the Companies Act, 2013 2013, and any rules made
2. To appoint a Director in and the Companies (Audit and thereunder (including any
place of Mr. Pirojsha Godrej Auditors) Rules, 2014, M/s. statutory modifications or re-
(DIN: 00432983), who retires P. M. Nanabhoy & Co. (Firm enactment thereof, for the time
by rotation, and being Membership number 000012), being in force) (the “Companies
eligible, offers himself for re- Cost Accountants, appointed Act”) and SEBI (Listing
appointment; as Cost Auditors by the Board Obligations and Disclosure
of Directors to audit the cost Requirements) Regulations,
3. To appoint a Director in records of the Company for the 2015 and pursuant to the
place of Mr. Nadir Godrej fiscal year 2023-24, be paid a provisions of the Articles of
(DIN: 00066195), who retires remuneration of ` 6,71,000/- per Association of the Company and
by rotation, and being annum plus applicable taxes and subject to such other approvals
eligible, offers himself for re- out-of-pocket expenses that as may be required, Ms. Shalini
appointment; may be incurred. Puchalapalli (DIN: 07820672),
be and is hereby appointed

426
 as an Independent Director (India) Limited (‘CSDL’) will be sent through electronic
of the Company, for the term providing facility for voting mode to Members whose
commencing from November through remote e-voting, e-mail address is registered
14, 2023 till November 13, for participation in the AGM with the Company or the
2028.” through VC / OAVM facility Depository Participant(s).
and e-voting during the AGM.
By Order of the Board of Directors The procedure for participating 6. PROCEDURE FOR JOINING
in the meeting through VC / THE AGM THROUGH VC/
OAVM is explained in Note OAVM:
Rahul Botadara
No. 8.
Company Secretary & Compliance
Officer • The link for VC/OAVM
3. As the AGM shall be conducted to attend meeting will
Mumbai, July 07, 2023 through VC / OAVM, the facility be available where
for appointment of Proxy by the the EVSN of Company
Notes: Members is not available for this will be displayed after
1. The statement pursuant to AGM and hence the Proxy Form successful login as per the
Section 102(1) of the Companies and Attendance Slip including instructions mentioned
Act, 2013 with respect to the Route Map are not annexed to above for e-voting.
special business set out in the this Notice.
Notice is annexed herewith. • Shareholders who have
4. Institutional / Corporate voted through Remote
2. As permitted by the Ministry Members are requested to send e-voting will be eligible
of Corporate Affairs (MCA) and a scanned copy (PDF / JPEG to attend the meeting.
Securities & Exchange Board of format) of the Board Resolution However, they will not
India (SEBI), the Company has authorising its representatives be eligible to vote at the
decided to conduct the AGM to attend and vote at the AGM, AGM.
through VC or OAVM as per pursuant to Section 113 of
the relevant circulars issued by the Act, at investor.relations@ • Shareholders are
the aforesaid authorities. The godrejcp.com. encouraged to join
MCA inter-alia vide its General the Meeting through
Circular Nos. 14/ 2020 5. ELECTRONIC DISPATCH OF Laptops / IPads for better
dated April 8, 2020 and ANNUAL REPORT experience.
17/2020 dated April 13, 2020,
followed by General Circular • In accordance with • Further, shareholders
Nos. 20/2020 dated May 5, the relevant MCA and will be required to allow
2020, and subsequent circulars SEBI Circulars, allowing Camera and use Internet
issued in this regard, the latest electronic dispatch of with a good speed to avoid
being 10/2022 dated December financial statements any disturbance during the
28, 2022 (collectively referred (including Report of Board meeting.
to as “MCA Circulars”) has of Directors, Auditors’
permitted the holding of report or other documents • Please note that
the annual general meeting required to be attached participants connecting
through VC or OAVM, without therewith) instead of from mobile devices or
the physical presence of the physical dispatch, such tablets or through laptop
Members at a common venue. statements including the connecting via mobile
The Central Depository Services Notice of AGM are being hotspot may experience
audio/video loss due

427
 to fluctuation in their 7. PROCEDURE TO RAISE considered and responded
respective network. It is QUESTIONS / SEEK during the AGM.
therefore recommended CLARIFICATION WITH
to use stable wi-fi or LAN RESPECT TO ANNUAL • Those shareholders who
connection to mitigate any REPORT: have registered themselves
kind of aforesaid glitches. as a speaker will only be
• Members who would like allowed to express their
• Only those shareholders, to express their views views/ask questions during
who are present in the or ask questions during the meeting. We request
AGM through VC/OAVM the AGM may register the members to restrict
facility and have not themselves as a speaker their queries on matters
cast their vote on the by sending their request relating to the Company.
resolutions through remote from their registered email
e-voting and are otherwise address mentioning their • The Company reserves the
not barred from doing so, name, demat account right to restrict the number
shall be eligible to vote number / folio number, of questions and number
through e-voting system mobile number along with of speakers, as appropriate
available during the AGM. their queries to investor. for smooth conduct of the
[email protected] AGM.
• Members attending the latest by 5 p.m. IST on
AGM through VC / OAVM Wednesday, 2nd August,
shall be counted for the 2023. Questions / queries
purpose of reckoning the received by the Company
quorum under section 103 till this time shall only be
of the Act.

8. SCHEDULE AND PROCEDURE FOR REMOTE E-VOTING

In accordance with the and the Secretarial Standards the 23rd AGM through electronic
provisions of Section 108 issued by the Institute of means and the business may be
of the Companies Act, Company Secretaries of India, transacted through the e-voting
2013 and Rule 20 of the the Company is pleased to services provided by the Central
Companies (Management and provide its members the facility Depository Services Limited
Administration) Rules, 2014, to exercise their right to vote at (CDSL).

The schedule for e-voting is as follows:-

Cut-off date for reckoning Commencement of Close of e-voting Results announcement date
voting rights for e-voting e-voting (Start date) (End date)

Monday, July 31, 2023 Thursday, August 03, Sunday, August 06, On or before Wednesday,
2023, 9.00 a.m. (IST) 2023, 5.00 p.m. (IST) August 9, 2023, 5.00 p.m. (IST)

During this period, shareholders results announcement date The procedure for voting
of the company, holding shares indicated above, the results electronically is given at the end
either in physical form or in of entire e-voting along with of this Notice in Appendix 1.
dematerialized form, as on the Scrutinizer’s report shall be
cut-off date, may cast their placed on the Company’s Mr. Kalidas Vanjpe, Practising
vote electronically. The e-voting website www.godrejcp.com Company Secretary,
module shall be disabled after besides being communicated to (Membership No. FCS 7132)
the close of e-voting. On the the Stock Exchanges. has been appointed as the

428
 Scrutiniser to scrutinise the the Register of Contracts Unpaid/Unclaimed Dividend
entire e-voting process in a or arrangements in which paid upto June 2016 has been
fair and transparent manner. Directors are interested under transferred by the Company
The Members desiring to Section 189 of the Act and the to the Investor Education and
vote through remote e-voting Certificate from Auditors of the Protection Fund (the ‘IEPF’)
are requested to refer to the Company certifying that the established by the Central
detailed procedure given ESOP Schemes of the Company Government. The Members are
hereinafter. The results of entire are being implemented in requested to note that as per
e-voting along with Scrutinizer’s accordance with, the Securities Section 124(5) of the Companies
report shall be placed on the and Exchange Board of India
Act, 2013, dividends 7 years
Company’s website www. (Share Based Employee
from the date of transfer to the
godrejcp.com within 2 working Benefits) Regulations, 2014 and
Company’s Unpaid Dividend
days of passing resolutions any other documents referred
Account shall be transferred
at the AGM of the Company to in the accompanying Notice
to the ‘Investor Education
and communicated to stock and Explanatory Statements,
and Protection Fund’ (IEPF) of
exchanges, where the shares of shall be made available for
the Government. Unclaimed
the Company are listed. inspection through electronic
Dividends, as per the details
mode, basis the request being
sent on investor.relations@ given in the table below, will be
9. PROCEDURE FOR
godrejcp.com. transferred to the IEPF on the
INSPECTION OF
dates mentioned in the table.
DOCUMENTS:
10. DIVIDEND RELATED Those members who have not,
INFORMATION so far, encashed these dividend
The Register of Directors and
warrants or any subsequent
Key Managerial Personnel and
Pursuant to the provisions of dividend warrants may claim or
their Shareholding maintained
Section 124 of the Act, the approach our Registrars Link
under Section 170 of the Act,
Intime India Private Ltd.

Dividend Period Type of Dividend Paid in Due date for transfer

2016-17 Interim August 2016 September 3, 2023
2016-17 Interim November 2016 December 13, 2023
2016-17 Interim February 2017 March 07, 2024
2016-17 Interim May 2017 June 14, 2024
2017-18 Interim August 2017 September 05, 2024

Please note that Section 124(6) dividends and for future appointed are attached
of the Companies Act, 2013 dividends, the shareholders are herewith to the Notice.
also provides that all shares in requested to get their details
By Order of the Board of Directors
respect of which the dividend updated by providing the
of last 7 consecutive years has relevant documents as required
Rahul Botadara
remained unclaimed, shall also by the RTA.
Company Secretary & Compliance
be transferred to the IEPF. Officer
11. Details as stipulated under
Hence, it is in the shareholders’ Listing Regulations in respect Mumbai, July 07, 2023
interest to claim any uncashed of the Directors being re-

429
 EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013

ITEM 4 None of the Directors, Key The details of Ms. Shalini Puchalapalli
Managerial Personnel (KMP), or their (DIN: 07820672) as required to
Pursuant to Section 148 of the relatives are, in any way, concerned be given pursuant to the Listing
Companies Act, 2013 and Rule 14 of with or interested, financially or Regulations and Secretarial
the Companies (Audit and Auditors) otherwise in the said resolution. Standards, are attached to the
Rules, 2014, the Company is required Notice.
to appoint a Cost Auditor to audit ITEM 5
the cost records for applicable The Board believes that the
products of the Company. Mr. Narendra Ambwani will be Company will benefit from her
finishing his second term on professional expertise and rich
On the recommendation of the Audit November 14, 2023. In order to experience. Hence, the Board
Committee, at its meeting held on ensure that the Board’s strength recommends the resolution at item
May 10, 2023, the Board considered of the Company is compliant, the no. 5 to the Members for their
and approved the re-appointment Company is required to induct a approval.
of M/s. P. M. Nanabhoy & Co., Cost new Independent Director. Based on
Accountants as the Cost Auditor the recommendation of Nomination None of the Directors, Key
for the fiscal year 2023-24 at a and Remuneration Committee, the Managerial Personnel (KMP), or their
remuneration of ` 6,71,000/- per Board at its meeting held on June relatives are, in any way, concerned
annum plus applicable taxes and 05, 2023, had approved the proposal with or interested, financially or
reimbursement of out-of-pocket for appointment of Ms. Shalini otherwise in the said resolution.
expenses. Puchalapalli in place of Mr. Ambwani,
By Order of the Board of Directors
for a period of five years from
The Board of Directors recommend November 14, 2023 till November Rahul Botadara
the Ordinary Resolution as set out 13, 2028. Company Secretary & Compliance
in Item No. 4 of the Notice for the Officer
Mumbai, July 07, 2023
approval of the shareholders.

Information pursuant to the Listing Regulations and Secretarial Standards with respect to appointment or re-
appointment of Directors
Names of Director Pirojsha Godrej Nadir Godrej Shalini Puchalapalli
Category Non-Executive Director Non-Executive Director Non-Executive and Independent
Director
DIN 00432983 00066195 07820672
Date of Birth and Age October 27, 1980 August 26, 1951 July 26, 1973
43 years 72 years 50 years
Qualification · MBA, Columbia Business · B.S Chem Engg. (M.I.T, · Bachelors in engineering
School U.S.A) from IIT, Madras
· Masters-International · M.S Chem Engg. ·  Personnel Management
Affairs, School of (Stanford, U.S.A) from XLRI
International & Public · MBA from INSEAD
Affairs at the Columbia
University
· Graduate-Economics,
Wharton School of
Business at the University
of Pennsylvania

430
Names of Director Pirojsha Godrej Nadir Godrej Shalini Puchalapalli
Nature of Expertise/ Industrialist /Management Industrialist Management
Experience
Brief Resume Appended at end of this table Appended at end of this table Appended at end of this table
First Appointment on the April 1, 2017 November 29, 2000 November 14, 2023 (Proposed)
Board
Terms & Conditions Re-appointment as a Non- Re-appointment as a Non- As mentioned in the resolution
of Appointment/ re- Executive Director subject to Executive Director subject to
appointment retirement by rotation retirement by rotation
Last Drawn Remuneration Last drawn remuneration Last drawn remuneration The proposed appointment
Details along with is given in the Corporate is given in the Corporate is the first appointment in the
remuneration sought to Governance Section of the Governance Section of the Company.
be paid Annual Report. As a Non- Annual Report. As a Non-
As a Non-Executive Director,
Executive Director, he is entitled Executive Director, he is entitled
she is entitled to sitting fees
to sitting fees for attending to sitting fees for attending
for attending meetings of
meetings of the Board/ meetings of the Board/
the Board/Committee and
Committee and Commission on Committee and Commission on
Commission on Profits as
Profits as may be approved by Profits as may be approved by
may be approved by the
the shareholders from time-time the shareholders from time-time
shareholders from time-time
within the limits set out in the within the limits set out in the
within the limits set out in the
Companies Act, 2013. Companies Act, 2013.
Companies Act, 2013.
No. of shares held in GCPL 3,70,129* 63* NIL
as at March 31, 2023
Relationship with other Brother of Ms. Nisaba Godrej Not related None
Directors/ Manager/ KMP and Ms. Tanya Dubash
No. of Board meetings 4 4 Not Applicable
attended out of 4 meetings
held during the year
Directorship details Listed Public Companies: Listed Public Companies: Listed Public Companies:
Godrej Consumer Products Godrej Consumer Products NIL
Limited Limited
Public Companies:
Godrej Agrovet Limited Godrej Industries Limited
NIL
Godrej Properties Limited Godrej Agrovet Limited
Godrej Industries Limited Godrej Properties Limited Private Companies:
Astec Lifesciences Limited NIL
Public Companies:
Godrej Housing Finance Limited Public Companies: Foreign Companies:
Godrej Capital Limited Godrej & Boyce Mfg. Co. NIL
Godrej Finance Limited Limited
Creamline Dairy Products LLPs:
Private Companies: Limited NIL
Swaddle Projects Private Godrej Tyson Foods Limited
Limited Partnership Firms;
Swaddle Studios Private Limited Private Companies: NIL
Godrej Fund Management And Isprava Vesta Private Limited Others:
Investment Advisers Private lsprava Hospitality Private
Miracle Foundation India
Limited Limited
Karukachal Developers Private Foreign Companies:
Limited Godrej International Limited
Eranthus Developers Private ACI Godrej Agrovet Private
Limited Limited
Ceres Developers Private Others:
Limited
The Association for Future
Praviz Developers Private Agriculture Leaders of India
Limited
Foreign Companies:
NIL

431
 Names of Director Pirojsha Godrej Nadir Godrej Shalini Puchalapalli
LLPs: LLPs:
Anamudi Real Estates LLP ANBG Enterprise LLP
AREL Enterprise LLP NBG Enterprise LLP
TNP Enterprise LLP Anamudi Real Estate LLP
ANBG Enterprise LLP Partnership Firms;
Partnership Firms: Partner in RKN Enterprise
Partner in RKN Enterprises
Committee Positions Member: Member: Member:
Stakeholders’ Relationship Stakeholders’ Relationship NIL
Committee: Committee: Chairperson:
Godrej Properties Limited Godrej Industries Ltd. NIL
Godrej Consumer Products Ltd. Godrej Agrovet Ltd.
Audit Committee: Nomination and Remuneration
Godrej Consumer Products Ltd. Committee:

Godrej Housing Finance Limited Godrej Tyson Foods Ltd.

Corporate Social Responsibility ESG Committee:
Committee: Godrej Consumer Products Ltd.
Godrej Properties Limited Risk Management Committee:
Godrej Housing Finance Limited Godrej Consumer Products Ltd.
Risk Management Committee: Godrej Industries Ltd.

Godrej Properties Limited Godrej Agrovet Ltd.

Environment, Safety and Corporate Social Responsibility
Governance Committee: Committee:
Godrej Properties Limited Godrej Consumer Products Ltd.
Nomination and Remuneration Godrej Industries Ltd.
Committee: Godrej Agrovet Ltd.
Godrej Housing Finance Limited
Chairperson:
Chairperson: Stakeholders’ Relationship
Risk Management Committee: Committee:
Godrej Properties Limited Godrej Agrovet Ltd.
Corporate Social Responsibility Risk Management Committee:
Committee: Godrej Industries Ltd.
Godrej Properties Limited Godrej Agrovet Ltd.
Godrej Housing Finance Limited Corporate Social Responsibility
Environment, Safety and Committee:
Governance Committee: Godrej Consumer Products Ltd.
Godrej Properties Limited Godrej Industries Ltd.
Stakeholders’ Relationship
Committee:
Godrej Consumer Products Ltd.
Names of listed entities NIL NIL NIL
from which Director has
resigned in the past three
years

* This shareholding reflects holding in their own name and does not include shares held as one of the trustee of family trusts.

432
Brief Resume of the Directors proposed to be appointed/re-appointed:

Pirojsha Godrej role of Executive Chairman of Godrej and Boyce, Godrej Consumer
Godrej Fund Management. In 2019, Products and other Godrej group
Mr. Pirojsha Godrej is the Executive Mr. Pirojsha founded and became companies. He has been active
Chairman of Godrej Properties, the Executive Chairman of Godrej in CLFMA (Compound Livestock
Godrej Housing Finance, and Housing Finance. He has travelled Feed Manufacturers Association of
Godrej Fund Management and a to over 90 countries and every India), ICC (Indian Chemical Council)
Non-Executive Director at Godrej continent and his interests include [erstwhile ICMA (Indian Chemical
Consumer Products and Godrej chess, scuba diving, and rare-book Manufacturers Association)], OTAI
Agrovet. Mr. Pirojsha graduated collecting. He is married and is (Oil Technologists’ Association of
from the Wharton School of Business the proud father of two young India) and the Alliance Française
in 2002, completed his Masters in daughters. de Bombay. He is currently the
International Affairs from Columbia President of the Alliance Française
University in 2004, and an MBA from In 2020, 2021 and 2022, the Global de Bombay. He is on the National
Columbia Business School in 2008. Real Estate Sustainability Benchmark Council of CII (Confederation of
Mr. Pirojsha joined GPL in 2004, ranked GPL #1 globally amongst Indian Industry). He is also very
became an Executive Director in listed residential developers for its active in the Harvard Business School
2008, and was appointed CEO of sustainability and ESG practices. and M I T Alumni Association in India.
Godrej Properties in 2012. He has The French government awarded
led the company through a phase of Nadir Godrej him the Ordre national du Mérite in
rapid growth. In Financial Year 2016, 2002 and the Légion d’Honneur in
Godrej Properties for the first time Mr. Nadir Godrej is the Chairman 2008. He has also received Life Time
became India’s #1 publicly listed real and Managing Director of Godrej Achievement Awards from OTAI (Oil
estate developer by residential sales, Industries Limited. Technologist Association of India)
a position it has retained for the past and Chemexcil and the All India
5 years. He has a B. S. degree in Chemical Liquid Bulk Importers and Exporters
Engineering in 1973 from the Association (AILBIEA). The Board
Under Mr. Pirojsha’s leadership, Massachusetts Institute of of Management of Manav Rachna
Godrej Properties has been at Technology and a M.S. in Chemical University has unanimously conferred
the forefront of the sustainable Engineering in 1974 from Stanford Mr. Godrej with an Honorary Degree
development movement; in 2013, University. He has done an MBA of Doctor of Philosophy. And he has
GPL received an award from former from Harvard Business School in been inducted as Fellow of Indian
President of India, APJ Abdul Kalam 1976. Since 1977 he has been a National Academy of Engineering
for being one of the companies in Director of Godrej Soaps. He has (INAE). He also received a Doctor of
India from across sectors to have been very active in developing Philosophy in Business Management
driven the green building movement. the animal feed, agricultural from XIM University, Bhubaneswar
In 2020, 2021 and 2022, the Global inputs and chemicals businesses in recognition of his contribution to
Real Estate Sustainability Benchmark of Godrej Industries and associate Industry and Society. Mr. Godrej is
ranked GPL #1 globally amongst companies. He has been very deeply committed to the GOOD and
listed residential developers for its active in research and has several GREEN strategies and achievement
sustainability and ESG practices. The patents in the field of agricultural of set targets for the Godrej Group.
Indian Green Building Council (IGBC) chemicals and surfactants. In He encourages and supports a
has awarded Pirojsha the IGBC 2001 Godrej Soaps was renamed shared vision value for all programs
Green Champion Award 2016 for his to Godrej Industries and he was of Good and Green.
contribution to the sustainability of appointed as the Managing Director
India’s built environment. of Godrej Industries. He is also Shalini Puchalapalli
the Chairman of Godrej Agrovet
In 2017, Pirojsha was appointed Limited and Director of Godrej Ms. Shalini is a Senior Director -
the Executive Chairman of Godrej Properties Limited, subsidiaries of Country Head for Google Customer
Properties. He also assumed the Godrej Industries. He is a Director of Solutions, where she is building

433
 the digital ecosystem for India. Her with physical gained through and Spencer Stuart in 2014 and
previous roles include Category transformative leadership across recognised as one of the ‘Women
Director with Amazon India and Tech, e-commerce and FMCG in Leaders to Watch in 2015’.
CEO for Lehar Foods Business multiple geographies across the
for PepsiCo. Ms. Shalini did her world. Ms. Shalini is a keen champion
bachelors in engineering from IIT, of women’s rights. She has been
Madras, Personnel Management She has been honoured as ‘Young working in the area of women’s
from XLRI, and MBA from INSEAD. Global Leader’ by the World empowerment and prevention of
Economic Forum. She has also been female foeticide for the last 25 years.
Ms. Shalini is a leader with deep awarded the ’40 under 40 Influential
expertise in marrying digital Leaders Award’ by Economic Times

Appendix-1 The procedure for members for voting electronically is as follows:-

Step 1 : Access through Depositories CDSL/NSDL e-voting system in case of individual shareholders holding
shares in demat mode.

Step 2 : Access through CDSL e-voting system in case of shareholders holding shares in physical mode and non-
individual shareholders in demat mode.

Note:

(i) Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting
venue.

(ii) Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 09.12.2020, under Regulation
44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all
shareholders’ resolutions. However, it has been observed that the participation by the public non-institutional
shareholders/retail shareholders is at a negligible level.

Currently, there are multiple E-voting Service Providers (ESPs) providing e-voting facility to listed entities in
India. This necessitates registration on various ESPs and maintenance of multiple user IDs and passwords by
the shareholders.

In order to increase the efficiency of the voting process, pursuant to a public consultation, it has been
decided to enable e-voting to all the demat account holders, by way of a single login credential, through
their demat accounts/ websites of Depositories/ Depository Participants. Demat account holders would
be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating
seamless authentication but also enhancing ease and convenience of participating in e-voting process.

Step 1 : Access through Depositories CDSL/NSDL e-voting system in case of individual shareholders holding
shares in demat mode.

(iii) In terms of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on e-voting
facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to
vote through their demat account maintained with Depositories and Depository Participants. Shareholders are
advised to update their mobile number and email Id in their demat accounts in order to access e-voting facility.

434
Pursuant to abovesaid SEBI Circular, Login method for e-voting and joining virtual meetings for Individual
shareholders holding securities in Demat mode with CDSL/NSDL is given below:

Type of Login Method

shareholders
Individual 1) Users who have opted for CDSL Easi / Easiest facility, can login through their existing user
Shareholders id and password. Option will be made available to reach e-voting page without any further
holding securities authentication. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/
in Demat mode myeasinew/home/login or visit www.cdslindia.com and click on Login icon and select New
with CDSL System Myeasi.
Depository 2) After successful login the Easi / Easiest user will be able to see the e-voting option for
eligible companies where the e-voting is in progress as per the information provided by
company. On clicking the e-voting option, the user will be able to see e-voting page of the
e-voting service provider for casting your vote during the remote e-voting period or joining
virtual meeting & voting during the meeting. Additionally, there is also links provided to
access the system of all e-voting Service Providers i.e. CDSL/NSDL/KARVY/LINKINTIME, so
that the user can visit the e-voting service providers’ website directly.
3) If the user is not registered for Easi/Easiest, option to register is available at https://web.
cdslindia.com/myeasinew/Registration/EasiRegistration
4) Alternatively, the user can directly access e-voting page by providing Demat Account
Number and PAN No. from a e-voting link available on www.cdslindia.com home page or
click on https://evoting.cdslindia.com/Evoting/EvotingLogin The system will authenticate
the user by sending OTP on registered Mobile & Email as recorded in the Demat Account.
After successful authentication, user will be able to see the e-voting option where the
e-voting is in progress and also able to directly access the system of all e-voting Service
Providers.
Individual 1) If you are already registered for NSDL IDeAS facility, please visit the e-Services website of
Shareholders NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either
holding securities on a Personal Computer or on a mobile. Once the home page of e-Services is launched,
in demat mode click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’
with NSDL section. A new screen will open. You will have to enter your User ID and Password. After
Depository successful authentication, you will be able to see e-voting services. Click on “Access to
e-voting” under e-voting services and you will be able to see e-voting page. Click on
company name or e-voting service provider name and you will be re-directed to e-voting
service provider website for casting your vote during the remote e-voting period or joining
virtual meeting & voting during the meeting.
2) If the user is not registered for IDeAS e-Services, option to register is available at https://
eservices.nsdl.com. Select “Register Online for IDeAS “Portal or click at https://eservices.
nsdl.com/SecureWeb/IdeasDirectReg.jsp
3) Visit the e-voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the
home page of e-voting system is launched, click on the icon “Login” which is available
under ‘Shareholder/Member’ section. A new screen will open. You will have to enter your
User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and
a Verification Code as shown on the screen. After successful authentication, you will be
redirected to NSDL Depository site wherein you can see e-voting page. Click on company
name or e-voting service provider name and you will be redirected to e-voting service
provider website for casting your vote during the remote e-voting period or joining virtual
meeting & voting during the meeting
Individual You can also login using the login credentials of your demat account through your Depository
Shareholders Participant registered with NSDL/CDSL for e-voting facility. After Successful login, you will be
(holding securities able to see e-voting option. Once you click on e-voting option, you will be redirected to NSDL/
in demat mode) CDSL Depository site after successful authentication, wherein you can see e-voting feature.
login through Click on company name or e-voting service provider name and you will be redirected to e-voting
their Depository service provider website for casting your vote during the remote e-voting period or joining
Participants (DP) virtual meeting & voting during the meeting.

435
 Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and
Forget Password option available at abovementioned website.


Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to
login through Depository i.e. CDSL and NSDL

Login type Helpdesk details

Individual Shareholders holding securities in Members facing any technical issue in login can contact CDSL
Demat mode with CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia.
com or contact at toll free no. 1800 22 55 33

Individual Shareholders holding securities in Members facing any technical issue in login can contact NSDL
Demat mode with NSDL helpdesk by sending a request at [email protected] or call at
toll free no.: 022 - 4886 7000 and 022 - 2499 7000

Step 2 : Access through CDSL 2) Click on should enter

e-voting system in case of “Shareholders” Folio Number
shareholders holding shares module. registered with
in physical mode and non- the Company.
individual shareholders in demat 3) Now enter your User

mode. ID 4) Next enter the

Image Verification as
(iv) Login method for e-voting a. For CDSL: 16 displayed and Click on
and joining virtual meetings digits beneficiary Login.
for Physical shareholders ID,

and shareholders other 5) If you are holding

b. For NSDL: 8 shares in demat form
than individual holding in
Character DP ID and had logged on
Demat form.
followed by 8 to www.evotingindia.
1) The shareholders Digits Client ID, com and voted on an
should log on to the earlier e-voting of any
c. Shareholders
e-voting website company, then your
holding shares
www.evotingindia. existing password is
in Physical Form
com. to be used.

6) If you are a first-time user follow the steps given below:

For Physical shareholders and other than individual shareholders holding shares
in Demat.

PAN Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable
for both demat shareholders as well as physical shareholders)

• Shareholders who have not updated their PAN with the Company/Depository
Participant are requested to use the sequence number sent by Company/RTA
or contact Company/RTA.

Dividend Bank Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded
Details in your demat account or in the company records in order to login.

OR Date of • If both the details are not recorded with the depository or company, please
Birth (DOB) enter the member id / folio number in the Dividend Bank details field.

436
(v) After entering these details (x) Click on the “RESOLUTIONS required to log on to www.
appropriately, click on FILE LINK” if you wish to view evotingindia.com and
“SUBMIT” tab. the entire Resolution details. register themselves in the
“Corporates” module.
(vi) Shareholders holding shares in (xi) After selecting the resolution,
physical form will then directly you have decided to vote • A scanned copy of the
reach the Company selection on, click on “SUBMIT”. A Registration Form bearing
screen. However, shareholders confirmation box will be the stamp and sign of the
holding shares in demat form displayed. If you wish to confirm entity should be emailed
will now reach ‘Password your vote, click on “OK”, else to helpdesk.evoting@
Creation’ menu wherein they to change your vote, click on cdslindia.com.
are required to mandatorily “CANCEL” and accordingly
enter their login password in modify your vote. • After receiving the login

the new password field. Kindly details a Compliance

note that this password is to be (xii) Once you “CONFIRM” your User should be created

also used by the demat holders vote on the resolution, you will using the admin login and

for voting for resolutions of any not be allowed to modify your password. The Compliance

other company on which they vote. User would be able to link

are eligible to vote, provided the account(s) for which

(xiii) You can also take a print of the they wish to vote on.
that company opts for e-voting
votes cast by clicking on “Click
through CDSL platform. It is
here to print” option on the • The list of accounts linked
strongly recommended not to
Voting page. in the login will be mapped
share your password with any
automatically & can be
other person and take utmost
(xiv) If a demat account holder has delink in case of any wrong
care to keep your password
forgotten the login password mapping.
confidential.
then Enter the User ID and the
image verification code and click • It is Mandatory that, a
(vii) For shareholders holding shares
on Forgot Password & enter scanned copy of the Board
in physical form, the details can
the details as prompted by the Resolution and Power
be used only for e-voting on
system. of Attorney (POA) which
the resolutions contained in this
they have issued in favour
Notice.
(xv) There is also an optional of the Custodian, if any,
provision to upload BR/POA should be uploaded in PDF
(viii) Click on the EVSN for the
if any uploaded, which will be format in the system for
relevant <Company Name> on
made available to scrutinizer for the scrutinizer to verify the
which you choose to vote.
verification. same.
(ix) On the voting page, you will see
(xvi) Additional Facility for Non – • Alternatively Non
“RESOLUTION DESCRIPTION”
Individual Shareholders and Individual shareholders
and against the same the option
Custodians – For Remote are required mandatory to
“YES/NO” for voting. Select the
Voting only. send the relevant Board
option YES or NO as desired.
The option YES implies that Resolution/ Authority letter
• Non-Individual
you assent to the Resolution etc. together with attested
shareholders (i.e. other
and option NO implies that you specimen signature of the
than Individuals, HUF, NRI
dissent to the Resolution. duly authorized signatory
etc.) and Custodians are
who are authorized to

437
 vote, to the Scrutinizer scanned copy of PAN card), AGM & e-voting from the
and to the Company at the AADHAR (self-attested CDSL e-voting System,
email address viz., investor. scanned copy of Aadhar you can write an email
[email protected], Card) by email to investor. to helpdesk.evoting@
if they have voted from [email protected] cdslindia.com or contact at
individual tab & not toll free no. 1800 22 55 33
2. For Demat shareholders -
uploaded same in the
Please update your email All grievances connected
CDSL e-voting system for
id & mobile no. with your with the facility for voting
the scrutinizer to verify the
respective Depository by electronic means may
same.
Participant (DP) be addressed to
Mr. Rakesh Dalvi, Sr.
PROCESS FOR THOSE 3. For Individual Demat Manager, (CDSL, ) Central
SHAREHOLDERS WHOSE shareholders – Please Depository Services (India)
EMAIL/MOBILE NO. ARE update your email id Limited, A Wing, 25th Floor,
NOT REGISTERED WITH THE & mobile no. with your Marathon Futurex, Mafatlal
COMPANY/DEPOSITORIES. respective Depository Mill Compounds, N M
Participant (DP) which is Joshi Marg, Lower Parel
1. For Physical shareholders- mandatory while e-voting (East), Mumbai - 400013 or
please provide necessary & joining virtual meetings send an email to helpdesk.
details like Folio No., through Depository. [email protected] or
Name of shareholder,
call toll free no. 1800 22
scanned copy of the share If you have any queries or
55 33.
certificate (front and issues regarding attending
back), PAN (self-attested

438
Notes
Notes