Godrej company

financial report
 INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF GODREJ CONSUMER PRODUCTS LIMITED

Report on the Standalone IND AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of GODREJ

CONSUMER PRODUCTS LIMITED (“the

Company”), which comprise the Balance Sheet as at March 31, 2017, the Statement
of Profit and Loss (including other comprehensive income), the Statement of Cash
Flows and the Statement of Changes in Equity for the year then ended, and
a summary of significant accounting policies and other explanatory information
(hereinafter referred to as ‘Standalone Ind AS financial statements’).

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters in Section 134(5)
of the Companies Act, 2013 (“the Act”) with respect to the preparation of these
standalone Ind AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act, read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding the assets of
the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the standalone Ind AS financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
BALANCE SHEET AS AT MARCH 31, 2017 ` Crore

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

Year ended Year ended

Note No.
March 31, 2017 March 31,
Revenue 2016
I Revenue from Operations 2 5,088.99 4883.40
9
II Other Income 3 63.60 61.37
0
III Total Income (I + II) 5,152.59 4944.77
IV Expenses
Cost of Materials Consumed 3 1,834.77 1847.87
1
Purchases of Stock-in-Trade 216.26 194.90
Changes in Inventories of Finished Goods, Stock- 3 (3.79) (48.24)
in-Trade and Work-in- Progress 2
Excise Duty 340.89 329.18
Employee Benefits Expense 3 299.01 331.37
3
Finance Costs 3 36.06 54.67
4
Depreciation and Amortization Expense 3 56.68 44.91
5
Other Expenses 3 1,265.23 1241.89
6
Total Expenses 4,045.11 3996.55
V Profit Before Exceptional Items and Tax (III-IV) 1,107.48 948.22
VI Exceptional Items - -
VI Profit Before Tax (V+VI) 1,107.48 948.22
I
VI Tax Expense
II
(1) Current Tax 235.40 202.48
(2) Deferred Tax 24.05 23.07
Total Tax Expense 259.45 225.55
IX Profit for the Year (VII-VIII) 848.03 722.67
X Other Comprehensive Income
A (i) Items that will not be reclassified to profit or
loss
Remeasurements of defined benefit plans (11.78) (2.46)
(ii) Income tax relating to item that will not be 6.59 0.85
reclassified to profit or loss
B (i) Items that will be reclassified to profit or loss
The effective portion of gains and losses on (1.16) -
hedging instruments in a cash flow hedge
(ii) Income tax relating to item that will be 0.41 -
reclassified to profit or loss
Total Comprehensive Income for the year (IX+X) 842.09 721.06
XI Earnings per Equity Share (Face Value ` 1) 3
7
(1) Basic (`) 24.90 21.22
(2) Diluted (`)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2017 ` Crore
Year Year
ended ended
March March 31,
31, 2017 2016
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Exceptional Items and Tax 1,107.48 948.22
Adjustment for:
Depreciation and amortisation 56.68 44.91
Unrealised Foreign Exchange (Gain) / Loss 0.57 (0.03)
Bad Debts Written off 0.29 3.92
Provision / (Write-back) for Doubtful Debts / Advances 2.43 (2.35)
Provision for Non Moving Inventory (3.11) 8.25
Write in of Old Balances (0.89) (1.17)
Expenses on Employee Stock Grant Scheme (ESGS) 7.59 6.06
Interest Expense & Discounting Charges 36.06 54.67
(Profit) / Loss on Fixed Assets Sold / Discarded (Net) (0.13) 11.39
(Profit) / Loss on Sale of Investments (Net) (6.23) (12.99)
Reversal of provision for dimunition in the value of investments (2.84) -
Fair value Gain/ (Loss) on financial assets measured at FVTPL (11.60) (0.16)
Recovery of loan from GCPL ESOP Trust which was earlier written off (0.61) (0.60)
Corporate Guarantee Commission (17.20) (18.60)
Interest Income (20.90) (28.00)
40.11 65.30
Operating Cash Flows Before Working Capital Changes 1,147.59 1,013.52
Adjustments for:
Inventories (2.93) (74.62)
Trade Receivables 65.25 (134.18)
Loans (1.03) 0.71
Other Financial Assets (17.55) 0.24
Other Non-Financial Assets (39.58) (8.36)
Financial Liabilities 276.61 (146.25)
Non - Financial Liabilities and Provisions (15.52) 61.23
265.25 (301.23)
Cash Generated from Operations 1,412.84 712.29
Adjustment for:
Direct Taxes Paid (235.35) (200.19)
Net Cash Flow from Operating Activities 1,177.49 512.10
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant & Equipment and Intangibles (Net) (104.56) (93.40)
Sale of Property, Plant & Equipment and Intangibles 1.51 1.48
Investments in Mutual Funds (Net) (343.03) 102.88
Investments in Deposits with NBFCs (Net) (149.00) (80.00)
Investments in NCD with NBFCs (Net) (206.44) -
Investments in Fixed Deposits having maturities greater than 3 months 98.69 216.38
(Net)
Investments in Subsidiaries (360.81) (274.45)
Sale of Subsidiary 32.29 -
Recovery of Loan by GCPL ESOP Trust which was earlier written off 0.61 0.60
Interest Received 20.54 27.07
Net Cash Flow (used in) Investing Activities (1,010.20) (99.44)
 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2017 ` Crore
Year ended Year ended
March 31, 2017 March 31, 2016

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Allotment of Equity Shares under ESGS 0.01 0.01
Issue of Debentures (Net of Expenses) - (0.25)
Redemption of Debentures (including Premium on - (277.64)
Redemption)
(Repayment)/ Proceeds from Packing Credit (2.75) 2.75
Proceeds from Commercial Paper 148.97 -
Interest & Discounting Charges Paid (31.76) (41.06)
Dividend Paid (195.78) (187.27)
Dividend Tax Paid (39.87) (38.12)
Net Cash Flow (used in) Financing Activities (121.18) (541.58)
NET INCREASE / (DECREASE) IN CASH AND CASH 46.11 (128.92)
EQUIVALENTS
CASH AND CASH EQUIVALENTS:
As At The Beginning of the year (Refer Note 14 A) 40.57 169.86
Less : Cash credit - (0.34)
Unrealised Foreign Exchange Restatement in Cash and (0.14) (0.03)
Cash Equivalents
As At The End of the year (Refer Note 14 A) 86.54 40.57
86.54 40.57
Note:

1)The above Statement of Cash Flows includes amount of ` 16.52 crore (previous
year ` 14.57 crore) (Refer Note 46) on account of Corporate Social Responsibility
expenditure which has been fully paid.
The above Statement of Cash Fows has been prepared under the ‘Indirect Method’ as set out in
IND AS 7, ‘Statement of Cash Flows
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2017
(a) Equity share capital ` Crore
Note No.
As at April 1, 2015 34.04
Changes in equity share capital during the year 19 0.01
As at March 31, 2016 34.05
Changes in equity share capital during the year 19 0.01
As at March 31, 2017 34.06

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

Other
Reserves & Surplus comprehen
sive
income

particulars Securities General others Retained Effective Total

Premium
reserve
reserve earnings Portion of cash
Flow hedges
Balance at April 1, 2015 1,439.88 154.05 34.61 1,619.5 - 3,248.1
7 1
Profit for the year - - - 722.67 - 722.67
Remeasurements of defined benefit plans - - - (1.61) - (1.61)
Total comprehensive income for the - - - 721.06 - 721.06
year
Exercise of Share options - - (6.39) - - (6.39)
Deferred employee compensation - - 6.06 - - 6.06
expense
Cash dividends - - - (187.27) - (187.27)
Dividend Distribution Tax (DDT) - - - (38.12) - (38.12)
Transfer from / (to) Debenture - - (24.39) 24.39 - -
Redemption Reserve
Premium Received on Allotment of Shares 6.39 - - - - 6.39
Balance at March 31, 2016 1,446.27 154.05 9.89 2,139.6 - 3,749.8
3 4
Profit for the year - - - 848.03 - 848.03
Remeasurements of defined benefit plans - - - (5.19) - (5.19)
Other comprehensive income for the year - - - - (0.75) (0.75)
Total comprehensive income for the - - - 842.84 (0.75) 842.09
year
Cash dividends - - - (195.78) - (195.79)
Dividend Distribution Tax (DDT) - - - (39.87) - (39.87)
Exercise of Share options - - (6.04) - - (6.04)
Deferred employee compensation - - 7.59 - - 7.60
expense
Premium Received on Allotment of Shares 6.04 - - - - 6.04
Balance at March 31, 2017 1,452.31 154.05 11.44 2,746.8 (0.75) 4,363.8
2 7
 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017

1. CORPORATE INFORMATION Godrej Consumer Products Limited (the

Company) was incorporated on November
29, 2000, to take over as a going concern the consumer products business of
Godrej Soaps Limited (subsequently renamed as Godrej Industries Limited),
pursuant to a Scheme of Arrangement as approved by the High Court,
Mumbai.
The Company is a fast moving consumer goods company, manufacturing and
marketing Household and Personal Care products. The Company is a public
company limited by shares, incorporated and domiciled in India and is listed on
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The
Company’s registered office is at 4th Floor, Godrej One, Pirojshanagar, Eastern
Express Highway, Vikhroli (east), Mumbai – 400 079.

2. BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation and measurement

a) Basis of Preparation
The financial statements have been prepared in accordance with Indian
Accounting Standards (“Ind AS”) as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with the
Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies
(Indian Accounting Standards) Rules, 2016 and other relevant provisions of the

Act.
The financial statements up to year ended March 31, 2016 were prepared in
accordance with the accounting standards notified under the Companies
(Accounting Standard) Rules 2006 and other relevant provisions of the Act,
considered as the “Previous GAAP”.
These financial statements are the Company’s first Ind AS financial statements and
are covered by Ind AS 101, First-time adoption
of Indian Accounting Standards. An explanation of how the transition to Ind AS has
affected the Company’s equity, financial position, financial performance and its
cash flows is provided in Note 51.
Current versus non-current classification
All assets and liabilities have been classified as current or
 non-current as per the Company’s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act, 2013. Based on the
nature of products and the time taken between acquisition of assets for processing
and their realization in cash and cash equivalent,
the Company has ascertained its operating cycle as twelve months for the
purpose of the classification of assets and liabilities into current and non- current.

b) Basis of Measurement
These financial statements have been prepared on a historical cost basis, except
for the following assets and liabilities which have been measured at fair value:
• Certain financial assets and liabilities (including derivative instruments)

measured at
fair value (refer accounting policy regarding financial instruments),
• Defined benefit plans – plan assets and share-based payments measured
at fair value
• Assets held for sale – measured at lower of carrying value or fair value less
cost to sell

Key estimates and assumptions In preparing these financial statements,

management has made judgements, estimates
and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
The areas involving critical estimates or judgements are:
i. Determination of the estimated useful lives of tangible assets and the

assessment as to which components of the cost may be capitalized; (Note

2.5 (a))
ii. Determination of the estimated useful lives of intangible assets and
determining intangible assets having an indefinite useful life; (Note 2.5 (b))
iii. Recognition and measurement of defined benefit obligations, key actuarial
assumptions; (Note 44)