AnnualReport

Godrej & Boyce Manufacturing Company Limited
ANNUAL REPORT
For the year ended 31st March, 2019
GODREJ & BOYCE MANUFACTURING COMPANY LIMITED
Established 1897
(Incorporated with limited liability on 3rd March, 1932 under the Indian Companies Act, 1913)
ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31st MARCH, 2019
CORPORATE INFORMATION
Board of Directors
JAMSHYD N. GODREJ, Chairman & Managing Director
ADI B. GODREJ
NADIR B. GODREJ
VIJAY M. CRISHNA, Executive Director
KAVAS N. PETIGARA
PRADIP P. SHAH
Ms. ANITA RAMACHANDRAN
ANIL G. VERMA, Executive Director & President
KEKI M. ELAVIA
Ms. NYRIKA HOLKAR, Executive Director - Corporate Affairs
NAVROZE J. GODREJ
Company Secretary Chief Financial Officer

PERCY E. FOUZDAR PURVEZ K. GANDHI
Auditors
DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Bankers
CENTRAL BANK OF INDIA ICICI BANK LTD.
UNION BANK OF INDIA AXIS BANK LTD.
STATE BANK OF INDIA HDFC BANK LTD.
CITIBANK N.A. KOTAK MAHINDRA BANK LTD.
EXPORT-IMPORT BANK OF INDIA
Registered Office and Head Office

Pirojshanagar, Vikhroli, Mumbai 400 079
Telephone: (022) 6796 5656, 6796 5959; Fax: (022) 6796 1518
E-mail: info@godrej.com | Website: http://www.godrejandboyce.com
Corporate Identity Number (CIN)

U28993MH1932PLC001828
Godrej & Boyce Mfg. Co. Ltd.
NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the Eighty-Eighth Annual General Meeting of the Members of GODREJ & BOYCE MANUFACTURING
COMPANY LIMITED will be held on Friday, 20th September, 2019 at 10.00 a.m. at Pirojshanagar, Vikhroli, Mumbai, 400079
to transact the following business:
ORDINARY BUSINESS
1. To receive, consider and adopt the Audited Standalone Financial Statements and the Audited Consolidated Financial
Statements of the Company for the financial year ended 31st March, 2019 together with the Reports of the Board of
Directors and Auditors thereon.
2. To appoint a Director in place of Mr. N.J. Godrej (DIN: 03049821), who retires by rotation and, being eligible, offers himself
for re-appointment.
3. To appoint a Director in place of Mr. A. B. Godrej (DIN: 00065964), who retires by rotation and, being eligible, offers himself
for re-appointment.
SPECIAL BUSINESS
4. To approve payment of commission to the Non-Executive Directors of the Company and to consider, and if thought fit, to
pass with or without modification(s), the following Resolution as a Special Resolution:
“RESOLVED THAT pursuant to Article 132 of the Articles of Association of the Company and the provisions of Section 197, 198
and all other applicable provisions, if any, of the Companies Act, 2013, a sum not exceeding 1% of the net profits of the
Company per annum computed in the manner prescribed therein, in respect of the profits for each of the five financial years
commencing from 1st April, 2019 be determined and distributed as commission amongst the Non-Executive Directors of the
Company in such amounts or proportions and in such manner as may be directed by the Board of Directors (or any
Committee thereof for the time being), and further that the commission paid to each of the Non-Executive Directors of the
Company pursuant to this Resolution shall be in addition to the fee for attending Meetings of the Board or any Committee
thereof which each such Non-Executive Director may be entitled to receive under the Articles of Association of the
Company.”
5. To ratify the remuneration payable to the Cost Auditors for the financial year 2019-20 and to consider, and if thought fit, to
pass with or without modification(s), the following Resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions, if any, of the Companies Act,
2013, the Companies (Audit and Auditors) Rules, 2014 and the Companies (Cost Records and Audit) Rules, 2014 (including
any statutory modification(s) or re-enactment thereof, for the time being in force)-
(a) Remuneration of Rs. 18,00,000 (excluding all taxes and reimbursement of out-of-pocket expenses) payable to M/s. P. D. Dani
& Associates, Cost Accountants, (Firm Registration No. 000593) appointed by the Board of Directors as the Cost Auditors of
the Company to conduct the audit of the cost records of the Company in respect of Appliances, Vending Machines and
Electric Motors businesses, for the financial year 2019-20, as approved by the Board of Directors, be and is hereby ratified;
and
(b) Remuneration of Rs. 24,00,000 (excluding all taxes and reimbursement of out-of-pocket expenses) payable to Mr. A. N.
Raman, Cost Accountant, (Membership No. 5359) appointed by the Board of Directors as the Cost Auditor of the Company to
conduct the audit of the cost records of the Company in respect of Construction, Electricals & Electronics, Material Handling
Equipment, Aerospace, Process Equipment, Precision Engineering, Toolings, Interio, and Security Solutions businesses, for
the financial year 2019-20, as approved by the Board of Directors, be and is hereby ratified.
FURTHER RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to do all acts and take all such
steps as may be necessary, proper or expedient to give effect to this Resolution.”
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Annual Report and Accounts 2018-19
NOTES:
a) The relative Explanatory Statement pursuant to Section 102 of the Companies Act, 2013, in respect of the business
mentioned under Item Nos. 4 and 5 as set out in the Notice is annexed hereto.
b) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING OF THE COMPANY IS ENTITLED TO
APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH A PROXY NEED NOT BE A MEMBER OF THE
COMPANY. A person can act as proxy on behalf of Members not exceeding fifty and holding in the aggregate not more than
ten percent of the total share capital of the Company carrying voting rights. A Member holding more than ten percent of the
total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act
as proxy for any other person or Member. Proxies in order to be effective should be deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the meeting. A proxy so appointed shall not have any right to
speak at the Meeting. A Proxy Form in Form MGT-11 is annexed to this Annual Report and marked Enclosure 5.
Proxies submitted on behalf of the limited companies, societies, partnership firms, etc., must be supported by appropriate
resolution/authority, as applicable, issued on behalf of the nominating organization.
c) Corporate Members intending to send their authorized representatives to attend the Annual General Meeting, are requested
to send a certified copy of the board resolution pursuant to Section 113 of the Companies Act, 2013 authorizing their
representative to attend and vote on their behalf at the Meeting.
d) Brief Resume of Directors proposed to be re-appointed, as stipulated in Secretarial Standards as issued by the Institute of
Company Secretaries of India is provided after the Explanatory Statement to this Notice.
e) Relevant documents referred to in the accompanying Notice are available for inspection at the Registered Office of the
Company during office hours on all days except Sundays and public holidays, upto the date of the Annual General Meeting.
The aforesaid documents will also be available for inspection by Members at the Annual General Meeting.
f) Pursuant to Section 101 of the Companies Act, 2013, read with relevant rules made thereunder, Companies can serve Annual
Reports and other communications through electronic mode to those Members whose email addresses are registered with
the Company/ Depositories, unless any Member has requested for a physical copy of the same. Members who have not
registered their email addresses so far are requested to register their email address with their Depository Participant only,
for receiving all communication including Annual Report, Notices, Circulars, etc. from the Company, electronically.
g) Members may please note that in terms of Section 124 of the Companies Act, 2013, any dividend which has not been paid or
claimed within thirty days from the date of declaration, shall be transferred within seven days from the date of expiry of the
said period of thirty days to the Unpaid Dividend Account with a scheduled bank. Any money transferred to the Unpaid
Dividend Account which remains unpaid or unclaimed for a period of seven years from the date of such transfer, shall be
transferred by the Company to the Investor Education and Protection Fund (IEPF) set up by the Government of India under
Section 125 of the Companies Act, 2013.
For and on behalf of the Board
J. N. GODREJ
Chairman & Managing Director
DIN: 00076250
Mumbai, 20th August, 2019
Registered Office:
Pirojshanagar, Vikhroli,
Mumbai 400 079.
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ANNEXURE TO NOTICE OF ANNUAL GENERAL MEETING
EXPLANATORY STATEMENT:
The following Explanatory Statement, as required by Section 102 of the Companies Act, 2013, sets out all material facts
relating to the business mentioned under Item Nos. 4 and 5 of the accompanying Notice dated 20th August, 2019.
Item No. 4
Article 132 of the Articles of Association of the Company, inter alia, provides for payment of commission to a Director who is
neither in the whole-time employment of the Company nor a Managing Director of the Company. Section 197 of the
Companies Act, 2013, provides, inter alia, that a Director who is neither in the whole-time employment of the Company nor a
Managing Director of the Company (the “Non-Executive Director”) may be paid remuneration by way of commission not
exceeding 1% (one per cent) of the net profits of the Company, if the Company has a Managing or Whole-time Director,
provided such payment is authorised by a Special Resolution passed in that behalf by the Members of the Company at a
General Meeting.
Having regard to the time and attention devoted by the Non-Executive Directors to the affairs of the Company, and the
contribution they make to the business and operations of the Company, the Members of the Company had, at the Annual
General Meeting of the Company held on 15th September, 2014, granted their approval by way of a Special Resolution under
Section 197, 198 of the Companies Act, 2013, for the determination and distribution among the Non-Executive Directors, a
sum not exceeding 1% of the net profits of the Company computed in the manner laid down in Section 198 of the Companies
Act, 2013, for each of the five financial years of the Company commencing from 1st April, 2014; the amount to be
determined by the Board to be distributed amongst the Non-Executive Directors in such manner as the Board may decide
from time to time. The validity of the aforesaid Resolution was upto 31st March, 2019. It is now proposed to seek the
approval of the Members to extend the validity of the said Resolution for a further period of five financial years commencing
from 1st April, 2019, as set out in the Special Resolution under Item No. 4 of this Notice.
Accordingly, the Directors commend the Resolution to the Members for their acceptance.
None of the Directors and/or, Key Managerial Personnel and their relatives, except Mr. A.B. Godrej, Mr. N.B. Godrej, Mr. K.N.
Petigara, Mr. P.P. Shah, Ms. A. Ramachandran, Mr. K.M. Elavia, Mr. N.J. Godrej and Mr. J.N. Godrej, being father of Mr. N.J
Godrej are concerned with or interested, financially or otherwise, in the said Resolution.
Item No. 5
In accordance with the provisions of Section 148 of the Companies Act, 2013, the Companies (Audit and Auditors) Rules,
2014 and the Companies (Cost Records and Audit) Rules, 2014 (including any statutory modification(s) or re-enactment
thereof, for the time being in force), the Board of Directors of the Company on the recommendation of the Audit Committee,
approved the appointment of (i) M/s. P. D. Dani & Associates, Cost Accountants, and (ii) Mr. A.N. Raman, Cost Accountant, as
the Cost Auditors of the Company for the financial year 2019-20, for conducting the audit of the cost records of certain
applicable businesses of the Company (as specified in the Resolution), at a remuneration of Rs. 18,00,000 and Rs. 24,00,000,
respectively, (excluding all taxes and reimbursement of out-of-pocket expenses). M/s. P.D. Dani & Associates to be the Lead
Cost Auditors.
The remuneration payable to the Cost Auditors is required to be ratified by the Members of the Company.
Accordingly, the consent of the Members is sought for passing Ordinary Resolution as set out in Item No. 5 of this Notice for
ratification of remuneration payable to the Cost Auditors for the financial year 2019-20.
None of the Directors and/or, Key Managerial Personnel and their relatives are concerned with or interested, financially or
otherwise, in the said Resolution.
J. N. GODREJ
DIN: 00076250
Registered Office:
Mumbai 400 079.
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Pursuant to the Secretarial Standards issued by ‘The Institute of Company Secretaries of India’, the
following information is furnished about the Directors proposed to be re-appointed:
Brief Resume of the Directors

Name of the Director Mr. N. J. Godrej Mr. A. B. Godrej
Particulars (DIN: 03049821) (DIN: 00065964)
Age 37 years 77 years
Nationality Indian Indian
Date of Appointment 6th November, 2017 30th April, 1973
Shares held in the Company 10,379 5
Qualification Bachelor’s degree in Mass B.S., M.S. from Massachusetts
Communication and French from Institute of Technology, USA
Boston College, Boston, USA; Master
of Design Degree in Innovation and
Design Strategy from the Illinois
Institute of Technology, Institute of
Design, Chicago, Illinois, USA
Expertise in specific functional Business Experience and A leading industrialist and Business
area Management Expertise Experience of over 50 years
Terms & Conditions of re- Appointment as an Non-Executive Appointment as an Non-Executive

appointment/ variation of Director subject to retirement by Director subject to retirement by
remuneration rotation rotation
Remuneration last drawn Nil Nil

Directorships held in other Mukteshwar Realty Private Limited. Godrej Consumer
companies Products Limited
Godrej Industries Limited
Indian School of Business
(Section 8 Company)
Chairman/Membership in other Nil Godrej Consumer Products Limited:

committees of the Board Member of Stakeholders
Relationship Committee
Godrej Industries Limited:

Chairman of Stakeholders
Relationship Committee
Inter-se relationship with other Son of Mr. J.N. Godrej Brother of Mr. N.B. Godrej
directors/ Key Managerial
Personnel
No. of Board meetings attended 1 (One) 5 (Five)
during the year
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BOARD'S REPORT
TO THE MEMBERS,
The Directors hereby present the Eighty-Eighth Annual Report of the Company together with the Audited Financial Statements
for the year ended 31st March, 2019.
1. FINANCIAL RESULTS (STANDALONE)

The Company’s performance during the financial year ended 31st March, 2019 as compared to the previous financial year,
is summarized below:
(Rupees in crore)
Current Year Previous Year
Revenue from Operations 11,051.55 9,796.76

Other Income 115.64 107.40
TOTAL REVENUE 11,167.19 9,904.16
Profit before Interest, Depreciation, and Tax 739.49 774.59
Less: (i) Interest and Finance Costs 168.00 180.42
Less: (ii) Depreciation and Amortization Expense 215.61 201.43
Profit before Exceptional Items and Tax 355.88 392.74
Add: Profit on Sale of TDR - 2.66
Less: Diminution in the Value of Investment in a Subsidiary - 38.54
Profit before Tax 355.88 356.86
Less: Provision for Current/Deferred Taxes 126.62 124.85
Profit after Tax 229.26 232.01
Surplus brought forward 2,880.50 2,567.01
Amount available for appropriation 3,109.76 2,799.02
Which the Directors recommend should be appropriated as follows:
(a) First Interim Equity Dividend: 1000% (Previous Year: 1500%) 67.84 101.77
(b) Second Interim Equity Dividend: 1000% (Previous Year: 750%) 67.85 50.88
(c) Dividend Distribution Tax (Net) 27.89 31.08
(d) Realised gain on sale of equity shares reclassified to retained earnings (54.25) (311.05)
(e) Reclassification of excess amount transferred in earlier years 196.12 -
(f) Transfer to Debenture Redemption Reserve 8.33 45.84
(g) Adjustments to Opening Retained Earnings Ind AS 115 3.49 -
(h) Surplus carried forward 2,792.49 2,880.50
TOTAL 3,109.76 2,799.02
2. DIVIDEND
During the financial year 2018-19, the Board of Directors declared and paid two Interim Dividends each at the rate of Rs.
1,000 per Equity Share of Rs. 100 each, absorbing in aggregate Rs.163.57 crore inclusive of taxes. The Directors do not
recommend payment of any final dividend for the financial year 2018-19. The total dividend for the financial year 2017-18
was Rs. 2,250 per Equity Share.
3. STATE OF THE COMPANY'S AFFAIRS

During the year under review, the Company’s Revenue from Operations (net) was up from Rs. 9,796.76 crore to Rs. 11,051.55
crore and Profit before Exceptional Items and Tax was Rs. 355.88 crore as against Rs. 392.74 crore for the previous year.
The Company operates in four major clusters – consumer, institutional, industrial products and projects. Overall, FY 2018-19
was a year of progress, notwithstanding some challenges. While payouts from the 7th Pay Commission to Central and State
Government employees should have helped increase discretionary spending, uncertainty stemming from the future political
scenario as well as lower liquidity in the market led to consumer demand being muted. Government spending continued but
private sector investments continue to be deferred. During the year, inflation reduced slightly and while commodity prices
finally softened during the second half of the year with zinc being the exception. Efforts to build capacity and capability in
the strategic sectors of space and defence continue, auguring well for some of our industrial businesses.
6
The Management expects supportive macroeconomic indicators to prevail. With a more stable political scenario in place, the
long-term India story continues to be positive. GDP growth is forecasted to be around 7%, a near-normal monsoon is
expected, commodity prices are likely to be stable, interest rates should soften, and inflation is likely to be under control.
However, the pace of private investment and consumption needs to pick up for all the supportive macro-economic factors to
result in stronger performance in our consumer and institutional businesses.
4. DEPOSITORY SYSTEM
The Company’s Equity Shares are available for dematerialisation through National Securities Depository Limited and Central
Depository Services (India) Limited. As on 31st March, 2019, 76.56% of the Equity Shares of the Company were held in
dematerialised Form.
5. EXTRACT OF ANNUAL RETURN

The Extract of Annual Return as provided under Section 92(3) of the Companies Act, 2013 and as prescribed in Form No. MGT-
9 of the Companies (Management and Administration) Rules, 2014, as amended from time to time is enclosed separately
with this Report as Enclosure 2 and is also available on the Company’s website viz.
http://www.godrejandboyce.com/godrejandboyce/statutoryReport.aspx?id=16&menuid=2897
6. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the Articles of Association of the Company and the provisions of Section 152(6)(e) of the Companies Act,
2013, Mr. A.B. Godrej (DIN: 00065964) and Mr. N.J. Godrej (DIN: 03049821), will retire by rotation at the ensuing Annual
General Meeting, and being eligible, offer themselves for re-appointment.
In terms of Section 149 of Companies Act, 2013 and the Companies (Appointment and Qualification of Directors) Rules, 2014,
Mr. K. N. Petigara (DIN: 00066162), Mr. P. P. Shah (DIN: 00066242), Ms. A. Ramachandran (DIN: 00118188) and Mr. K. M.
Elavia (DIN: 00003940) have been appointed as Independent Directors of the Company, to hold office for a period of five
consecutive years with effect from the 83rd Annual General Meeting i.e. from 15th September, 2014 till 15th September,
2019, and they are not liable to retire by rotation. The Members have, in the Extraordinary General Meeting held on 30th
May, 2019, approved the re-appointment of all the Independent Directors of the Company for a second term of five years
commencing from 15th September, 2019. The Company has received declarations from all the Independent Directors
confirming that they meet with the criteria of independence as prescribed by Section 149(6) of the Companies Act, 2013.
There has been no change in the circumstances affecting their status as Independent Directors of the Company.
The Nomination and Remuneration Committee, in terms of the provisions of Section 178 of the Companies Act, 2013, had
recommended to the Board framing of a Policy for selection and appointment of Directors & Senior Management and their
remuneration, which was adopted by the Company.
The Company’s Policy on Appointment of Directors, is stated below:
 The Company is committed to equality of opportunity in all aspects of its business and does not discriminate on the grounds
of nationality, race, colour, religion, caste, gender, gender identity or expression, sexual orientation, disability, age or marital
status.
 The Company recognizes merit and continuously seeks to enhance the effectiveness of its Board. The Company believes that
for effective corporate governance, it is important that the Board has the appropriate balance of skills, experience and
diversity of perspectives.
 Board appointments will be made on merit basis and candidates will be considered against objective criteria with due regard
for the benefits of diversity on the Board. The Board believes that such merit-based appointments will best enable the
Company to serve its stakeholders.
 The Board will review this Policy on a regular basis to ensure its effectiveness.
The Board of Directors has carried out an annual evaluation of its own performance, Board committees, and individual
Directors pursuant to the provisions of the Companies Act, 2013. The performance of the Board is evaluated by the Board
after seeking inputs from all the Directors on the basis of criteria such as the board composition and structure, effectiveness
of Board processes, information and functioning, etc. In a separate Meeting of the Independent Directors, performance of
Non-Independent Directors, the Board as a whole and the Chairman of the Company was evaluated, taking into account the
views of Executive Directors and Non- Executive Directors. The Board reviews the performance of individual Directors on the
basis of criteria such as the contribution of the individual Director to the Board and Committee Meetings like preparedness
on the issues to be discussed, meaningful and constructive contribution and inputs in Meetings, etc. Performance evaluation
of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.
7
The Non-Executive Directors received Sitting Fees and Commission in accordance with the provisions of the Companies Act,
2013.
Mr. J.N. Godrej, Chairman & Managing Director, Mr. V.M. Crishna, Executive Director, Mr. A.G. Verma, Executive Director &
President, Ms. Nyrika Holkar, Executive Director- Corporate Affairs, Mr. P. E. Fouzdar, Executive Vice President (Corporate
Affairs) & Company Secretary and Mr. P. K. Gandhi, Chief Financial Officer, are the Key Managerial Personnel of the Company
as at the date of this Report.
7. NUMBER OF MEETINGS OF THE BOARD

The Board met five times during the financial year 2018-19, viz., 27th April, 2018, 6th July, 2018, 4th September, 2018, 20th
December, 2018 and 4th February, 2019. The maximum interval between any two Meetings did not exceed 120 days, as
prescribed in the Companies Act, 2013.
8. DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Companies Act, 2013, the Directors, based on the representations received from
the Operating Management, and after due enquiry, confirm that:
(a) in the preparation of the annual accounts for the financial year ended 31st March, 2019, the applicable accounting standards
had been followed;
(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018
and of the profit of the Company for the year ended on 31st March, 2019;
(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
(d) the Directors had prepared the annual accounts on a going concern basis;
(e) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
9. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE AND POLICY

The Corporate Social Responsibility (CSR) Committee has been constituted in accordance with Section 135 of the Companies
Act, 2013 and comprises of Mr. V. M. Crishna, Chairman, Mr. J. N. Godrej, Mr. A. G. Verma, Mr. K. M. Elavia and Mr. P. P.
Shah.
The Company Secretary acts as the Secretary of the CSR Committee.
The CSR Committee met twice during the year under review.
Based on the recommendation of the CSR Committee, the Board has approved the CSR Policy of the Company, including the
CSR activities and the projects proposed to be undertaken by the Company, and its governance structure and the CSR Policy
is placed on the website of the Company at http://www.godrejandboyce.com/godrejandboyce/pdf/CSR_policy.pdf.
The details required under the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in the CSR Report,
which is appended as Annexure II to this Report.
10. AUDIT COMMITTEE

The Audit Committee has been constituted in accordance with the provisions of the erstwhile Companies Act, 1956, and
comprises of Mr. K. M. Elavia, Chairman, Mr. K. N. Petigara and Ms. A. Ramachandran. The Chief Financial Officer, Internal
Auditor and Statutory Auditors of the Company are the permanent invitees to the Meetings of the Audit Committee.
The Company Secretary acts as the Secretary of the Audit Committee.

The Audit Committee met four times during the year under review.
The Audit Committee had at its Meeting held on 19th August, 2019 met the Company’s Statutory Auditors and reviewed the
Audited Standalone Financial Statements and the Audited Consolidated Financial Statements for the financial year 2018-19,
for further approval of the Board of Directors and the Members of the Company.
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11. VIGIL MECHANISM/ WHISTLE-BLOWER POLICY

The Company has adopted the Code of Ethics & Business Conduct, which lays down the principles and standards that should
govern the actions of the Company, its employees and other stakeholders. The Company is committed to adhere to the
highest standards of ethical, moral and legal conduct of business operations.
As per the provisions of Section 177(9) and (10) of the Companies Act, 2013, the Company is required to establish an
effective Vigil Mechanism for Directors and employees to report genuine concerns regarding unethical behavior, actual or
suspected fraud or violation of the Company’s Code of Ethics & Business Conduct. The Company has a Whistle-Blower Policy
in place to report concerns about unacceptable, improper and/or unethical behavior and practices, actual/suspected frauds
and violation of Company’s Code of Ethics and Business Conduct. For protected disclosure and protection to the Whistle-
Blower, the policy provides for adequate safeguards against victimisation of persons who avail the same, and provides for
direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.
The Company has disclosed information about the establishment of the Whistle-Blower Policy on its website at the Weblink:
http://www.godrejandboyce.com/godrejandboyce/pdf/Whistleblower.pdf
12. NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee (NRC) has been constituted by the Board of Directors of the Company in
accordance with the provisions Section 178 of the Companies Act, 2013 and comprises of Ms. A Ramachandran, Chairperson,
Mr. K. N. Petigara and Mr. K. M. Elavia.
The Company Secretary acts as the Secretary of the NRC.
The NRC met once during the year under review.
13. STAKEHOLDERS RELATIONSHIP COMMITTEE

The Stakeholders Relationship Committee (SRC) has been constituted by the Board of Directors of the Company in
accordance with the provisions of Section 178 of the Companies Act, 2013 and comprises of Mr. K. N. Petigara, Chairman,
Mr. K. M. Elavia and Mr. V.M. Crishna.
The Company Secretary acts as the Secretary of the SRC.
The SRC met twice during the year under review.
14. FIXED DEPOSITS FROM MEMBERS AND FROM PUBLIC

During the current financial year, the Company accepted/ renewed Fixed Deposits from its Members and from Public, in
accordance with the provisions of Sections 73 and 76, and other applicable provisions of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014.
The details relating to Deposits in terms of Rule 8(5)(v) of the Companies (Accounts) Rules, 2014, are given hereinunder:
Sr. Particulars Amount in Crore (Rs.)

No.
1 Deposits accepted during the year from Members and Public 403.28
2 Deposits from Public remaining unpaid or unclaimed at the end of the year 10.30
3 Whether there has been any default in repayment of deposits or payment of interest
thereon during the year, and if so, number of such cases and the total amount involved:
(i) At the beginning of the year -

(ii) Maximum during the year -
(iii) At the end of the year -
4 Details of deposits which are not in compliance with the requirements of Chapter V of the -
Companies Act, 2013
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15. TRANSFER OF UNCLAIMED AMOUNT TO THE INVESTOR EDUCATION AND PROTECTION FUND (“IEPF”)
The Company sends letters to all deposit holders, whose deposits or interest due thereon are unclaimed so as to ensure that
they receive their rightful dues. Efforts are also made to communicate with the deposit holders in cases wherein they have
relocated and failed to intimate the Company of the new address.
As provided in Section 125 of the Companies Act, 2013, during the year the Company had transferred a sum of Rs. 50,943
comprising interest due on deposits to the IEPF, the amount which was due and payable but remained unclaimed and unpaid
for a period of seven years.
The Company has appointed a Nodal Officer under the provisions of IEPF Regulations, the details of which are available on
the website of the Company, which can be accessed through the following link:
http://www.godrejandboyce.com/godrejandboyce/pdf/Appointment-NO.pdf
The Company has uploaded the details of unpaid and unclaimed amounts being sum of matured Deposits and interest due
thereon lying with the Company as on 28th September, 2018 (date of last AGM) on the Company’s website, which can be
accessed through the following link: http://www.godrejandboyce.com/godrejandboyce/PDF/IEPFStatus2018.pdf and of the
Ministry of Corporate Affairs website at www.iepf.gov.in.
16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

The Company has formulated a Related Party Transaction Policy for entering into transactions by the Company with related
parties, pursuant to the requirements of the Companies Act, 2013.
All transactions entered into during the financial year 2018-19 with related parties as defined under the Companies Act,
2013, were in the ordinary course of business and on an arm’s length basis, details of which are given in the notes to the
financial statements, except transactions entered into by the Company with related parties referred to in Section 188(1) of
the Companies Act, 2013, which have been disclosed under item 1 of Form AOC-2, pursuant to Section 134(3)(h) of the
Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014; the said Form AOC-2 is enclosed
separately with this Report as Enclosure 3. Since there have been no material contracts or arrangements or transactions on
arm’s length basis, disclosure under item 2 of Form AOC-2 is not applicable.
17. PARTICULARS OF INVESTMENTS MADE, GUARANTEES PROVIDED AND LOANS GIVEN BY THE COMPANY
The details of loans, guarantees, and investments as required by the provisions of Section 186 of the Companies Act, 2013
and the Rules made thereunder are set out in the Notes to the Standalone Financial Statements of the Company.
18. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There have been no material changes and commitments affecting the financial position of the Company, which have
occurred between 31st March, 2019 and the date of this Report.
19. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
There are no significant material orders passed by the regulators/ courts/ tribunals which would impact the going concern
status of the Company and its future operations.
20. INTERNAL FINANCIAL CONTROLS

The Company has aligned its Internal Financial Control systems in line with the requirements of Companies Act, 2013.
The Company has an Internal Financial Control framework, commensurate with the size, scale and complexity of its
operations. The Company maintains Internal Control Systems designed to provide reliable and timely financial and
operational information, ensure compliance with applicable Laws and Regulations, safeguard assets from unauthorized use
or disposal, execute transactions with proper authorization, and comply with corporate policies and procedures. Internal
control framework ensures the integrity of financial statements.
10
The Internal Control Framework is developed on a strong base laid down by the Company’s code of conduct and ethics
policies, elaborate policies and procedures, business planning and management reviews, organisation structure which clearly
defines segregation of duties and responsibilities and risk management framework.
The business scenario is dynamic due to the change in strategy by the competition, Statutory Laws and Regulations, micro
and macro-economic scenarios. Hence, the processes and systems are upgraded from time to time as the need be by
implementing newer and/or improved controls wherever the identified control gaps are material in nature. The Internal
Financial Controls have been documented, embedded in the business processes.
The Company has its own independent Internal Audit Department which is ISO 9001:2015 certified. The Internal Audit team
prepares an annual audit plan based on the risk profiles of the businesses. The Audit plan is approved by the Audit
Committee, which also reviews the compliance of the plan.
The Internal audit function independently reports to the Audit Committee and Chairman and Managing Director of the
Company. The Internal Audit team carries out periodic audits at all locations and of all functions and inter alia, tests the
design, adequacy and efficacy of Internal Controls Systems in the Company. It also evaluates the compliance of the
accounting procedures and policies. Significant observations of the Internal Audit reports including recommendations or
improvements of business processes are reviewed by the process owners who undertake corrective actions in their
respective areas. The Audit Committee reviews the Internal Audit report in each of its Meetings and monitors the
implementation of Audit recommendations.
21. RISK MANAGEMENT

The Company recognizes that Enterprise Risk Management (‘ERM’) is an integral part of business management and is
committed to manage risks in a structured manner. The Company understands that effective ERM is essential to achieve
strategic business objectives and long-term sustainable growth. The Company has well documented ERM policy which lays
down the framework of Risk Management giving guidelines for proactive approach of identifying, assessing, prioritizing and
mitigating the risks associated with business.
The Company has a sound and structured ERM framework to address and manage the volatility and complexity of external
environment associated with its business by alignment of strategy, processes, people, technology and knowledge. The
current ERM framework is in line with global ERM standards which is aimed at creating a culture of Risk Enabled Performance
Management(REPM) which integrates the ERM framework with strategy and planning process. The framework for ERM and
the Risk management policy has been reviewed by the Audit Committee and has been approved by the Board.
The Company has created risk infrastructure by setting up an ERM Executive Committee headed by the President of the
Company. The committee periodically reviews the Risk Management framework and ensures the same is working effectively.
It also reviews the risks and mitigation plans drawn by various businesses and functional risk teams to avoid unforeseen
events. The individual Businesses/Functions are responsible for risk identification and mitigation plan, who as risk owners
review and monitor the key risks to avoid undue deviations and adverse events and thus create value for the business. Top
entity levels risks have been identified at the ERM Executive Committee level taking in the consideration the following: -
(a) Bottom up approach – assessing the risks identified by businesses to identify critical risk having impact at entity level.
(b) Top down approach – assessing risks emanating from long term planning.
(c) Assessing and identifying risks which need mitigation at central level.
For each of the risk identified, risk owner, policies and procedures are put in place for monitoring, mitigating and reporting
the risks on a periodic basis.
The ERM Executive Committee also helps to prioritize these entity-wide risks identified and steer mitigation efforts in line
with the Company’s risk capacity and appetite which in turn are reported to the Audit Committee and the Board. The entire
process is independently reviewed by Internal Audit Department to ensure that the risk management framework is operating
effectively.
22. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as
required under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is appended
as Annexure I to this Report.
11
23. PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
In terms of Section 129 of the Companies Act, 2013, the Consolidated Financial Statements have been prepared by the
Company in accordance with the applicable accounting standards, and form part of this Report. A statement containing the
salient features of the financial statements of the Company’s Subsidiaries, Joint Ventures and Associates, in Form AOC-1 as
required under Rule 5 of the Companies (Accounts) Rules, 2014 forms part of the Notes to the Consolidated Financial
Statements, and provides details on the performance and financial position of each of the Subsidiaries, Associates and Joint
Venture companies included in the Consolidated Financial Statements.
24. AUDITORS
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, (Firm Registration no. 117366W/W-100018) were appointed as the
Statutory Auditors of the Company by the Members at the 86th Annual General Meeting (AGM) held on 24th November,
2017 for a term of 5 consecutive years upto the 91st AGM to be held in 2022, subject to ratification by the Members at every
AGM.
The first proviso to Section 139 of the Companies Act, 2013 which provided for the ratification of appointment of the
Statutory Auditors by the Members at every AGM has been omitted by the Companies Amendment Act, 2017 w.e.f. 7th May
2018. Hence, the appointment of Statutory Auditors shall continue to be valid till the conclusion of the 5 consecutive AGMs
and no ratification of appointment of Statutory Auditor is required at the ensuing AGM. Hence the Resolution to this item is
not being included in the Notice to the AGM.
25. COST AUDITORS

Pursuant to Section 148(1) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the Company has
maintained cost records as specified by the Central Government.
Pursuant to Section 148 of the Companies Act, 2013, the Companies (Audit and Auditors) Rules, 2014 and the Companies
(Cost Records and Audit) Rules, 2014, the Board of Directors, on the recommendation of the Audit Committee, had
appointed M/s. P. D. Dani & Associates, Cost Accountants (Firm Registration No. 000593) and Mr. A.N. Raman, Cost
Accountant, (Membership No. 5359) as the Cost Auditors of the Company for the financial year ended 31st March 2019, for
conducting the audit of the cost records maintained as per the provisions of Section 148 (1) of the Companies Act, 2013, for
the applicable products and services of the Company. The Cost Audit Reports will be filed with the Central Government
within the stipulated time period of 180 days from the close of the financial year.
In accordance with the provisions of Section 148 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules,
2014, the Board of Directors, on the recommendation of the Audit Committee, approved the appointments of:
(a) M/s. P. D. Dani & Associates, Cost Accountants, as the Cost Auditors of the Company for the financial year ending 31st March
2020, to conduct the audit of the cost records of the Company in respect of Appliances, Vending Machines and Electric
Motors businesses, at a remuneration of Rs. 18,00,000 (Rupees Eighteen Lakhs) (excluding all taxes and reimbursement of
out-of-pocket expenses). They are appointed as the Lead Cost Auditors and;
(b) Mr. A.N. Raman, Cost Accountant, as the Cost Auditors of the Company for the financial year ending 31st March 2020, to
conduct the audit of the cost records of the Company in respect of Construction, Electricals & Electronics, Material Handling
Equipment, Aerospace, Process Equipment, Precision Engineering, Toolings, Interio, and Security Solutions businesses, at a
remuneration of Rs. 24,00,000 (Rupees Twenty-Four Lakhs) (excluding all taxes and reimbursement of out-of-pocket
expenses).
The remuneration of the Cost Auditors is required to be ratified by the Members of the Company at the ensuing Annual
General Meeting.
26. SECRETARIAL AUDITORS

During the year under review, the Board appointed M/s. A.N. Ramani & Co., Practising Company Secretaries, to conduct
Secretarial Audit of the Company for the financial year 2018-19. The Secretarial Audit Report in terms of Section 204 of the
Companies Act, 2013, issued by them is annexed and marked as Annexure III to this Report. There are no qualifications,
reservations or adverse remarks or disclaimers made by M/s. A.N. Ramani & Co., Practising Company Secretaries, in their
Secretarial Audit Report.
27. SECRETARIAL STANDARDS

The Board of Directors confirm that the Company has complied with the applicable Secretarial Standards, i.e. SS-1 and SS-2,
relating to ‘Meetings of the Board of Directors’ and ‘General Meetings’, respectively, issued by the Institute of Company
Secretaries of India.
12
28. FRAUD REPORTING

There have been no instances of fraud reported by the Auditors under Section 143(12) of the Companies Act, 2013 and Rules
framed thereunder either to the Company or to the Central Government.
29. PARTICULARS OF EMPLOYEES

Disclosures of details with respect to the remuneration of employees as required under Section 197 of the Companies Act,
2013 and Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are
separately enclosed with and form part of this Report as Enclosure 4.
The information required pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(2) and (3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is available
for inspection by the Members at the Registered Office of the Company during business hours on working days upto the date
of the ensuing Annual General Meeting. If any Member is interested in obtaining a copy thereof, such Member may write to
the Company Secretary, whereupon a copy would be sent.
30. POLICY TO PREVENT SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

The Company is deeply committed to the creation and maintenance of an atmosphere where every employee is treated with
dignity and respect and afforded equitable treatment. It strives to create conditions in which employees can work together
without fear of sexual harassment, exploitation or intimidation. As per the requirements of the provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“SHWW Act, 2013”), the Company
has instituted a Policy on Prevention of Sexual Harassment at the Workplace (Policy) and under the purview of the same a
Complaints Committee (“the Committee”) has also been formed. Pursuant to the relevant provisions of the SHWW Act, 2013
and the Rules made thereunder, as amended from time to time, since there were no complaints during the year, the
Committee filed a ‘NIL Report’ with the ‘Office of the Deputy Collector, Mumbai Suburban District’.
31. ACKNOWLEDGEMENT
Your Directors wish to place on record sincere appreciation for the support and co-operation received from various Central
and State Government Departments, organizations and agencies.
The Directors also gratefully acknowledge all stakeholders of your Company, viz., Shareholders, customers, dealers, vendors,
banks and other business partners for excellent support received from them during the Financial Year under review. Your
Directors also express their warm appreciation to all the employees of the Company for their unstinted commitment and
continued contribution to the growth of the Company.
J. N. GODREJ
DIN: 00076250
Registered Office:
Mumbai 400 079.
13
ANNEXURE I TO THE BOARD'S REPORT
A. CONSERVATION OF ENERGY
(i) The steps taken or impact on conservation of energy

1. Installation of Energy Efficient 2 Stage Air Compressor
2. Realtime Specific Energy consumption monitoring of compressed air for Energy efficiency improvement
3. Modification of Air comp intake/Exhaust air duct for better energy efficiency
4. Compressed Air flow metering & pipe modification to minimize distribution & unmetered loss.
5. New energy efficient air compressor installation, Asset optimization & effective capacity utilization of air compressor
6. Reduced Compressed Air Leakages across various plant by continuous Air Leakage Monitoring & Arresting
7. Installation of IFC (Intelligent low controller) at various plants
8. Replacement of pneumatic Grinder with HF Grinder
9. Installation of screw compressor chillers for energy efficient HVAC with BMS system
10. Installation of new generation Energy efficient VRV at plants
11. Installation of Evaporative Cooling system for Office area
12. Installation of IE-3 & IE-4 Energy Efficient Motor at Plants
13. Installation of Temperature sensor based auto cut off system for Cooling Tower
14. Installation of Energy Efficient Pump at Various Plants
15. Installation of Energy Efficient AHU at plants
16. Installation of VFD for Pumps, Blower, Compressed Air at various plants
17. Installation of turbo ventilators at rooftop and translucent sheets for natural day lighting
18. Installation of Auto ignition and cut off system for IDRA furnace burner
19. Use of Low Temperature Chemical at pretreatment Process to reduce Energy consumption
20. Installation of LED lights at Shop floor & office area
21. Installation of Light Pipe across Plants for using natural daylight.
22. Installation of Hydraulic Power Pack with Servo motor
23. Installation of Waste Heat Recovery system at Ovens
24. Installation of Heat Pipe to reuse the Waste Heat in the Process
25. Facilitated Energy Audits and helped in Implementation of energy conservation projects to the divisions/plants
26. IOT: Online Energy Management System & Data Analytics
27. Celebration of energy conservation week, earth hour, posting green tips/facts, Energy Efficient Product offering to Employees to
spread the energy conservation awareness
28. CII-GreenCo certification by business units
(ii) The
ii. steps taken for utilising alternate sources of energy
1. Installation of solar water heating system for colony premises.
2. Installation of rooftop solar PV (Photovoltaic) at plants.
3. Purchase of solar power for offsite locations.
4. Installation of Solar Pump & Street Light at Plants
5. Waste Heat Recovery at Ovens/Processes
(iii) The capital investment on energy conservation equipment

1. Installation of online Energy Monitoring System.
2. Installation of Energy Efficient Air Compressor.
3. Installation of Energy Efficient Chillers/HVAC system
4. Installation of VFD (Variable Frequency Drive) on machines, pumps, blowers and AHU (Air Handling Unit).
5. Installation of Energy Efficient Pump, Motors, Blowers, AHU etc
6. Installation of Rooftop Solar PV Plants
7. Installation of Solar Hot Water System
B. TECHNOLOGY ABSORPTION
(i) The efforts made and the benefits derived from technology absorption
a. Development of 2 Ton and 5 Ton Electric Tow trucks with superior aesthetics, ergonomics and improved drive features.
b. Development of Specialized Linear Actuator Motors for international markets confirming to international certification standards of UL
(Underwriters laboratories), CSA (Canadian Standards Association), CE (Conformite Europeenne) and CCC (China Compulsory
Certification).
c. Development of pro type of Smart Parcel Lockers with integrated metal carcass and electronic circuity with software programme for
getting access to lockers placed in public places through pass codes or links via smart phones.
d. Development of SMART DIE concept tested in line with Digitization initiative of developing future dies with SMART Technology.
14
e. Development of manufacturing facility for production of rubber fuel tanks for aircrafts and helicopters.
f. Development of safe deposit locker cabinets with central electronic locking.
g. Development of glass door bottom mount refrigerator in 430 litres capacity.
h. Development and design for in-house manufacturing of 1 ton and 1.5-ton 3star & 5star air conditioners with ecofriendly refrigerants.
i. Development of Smart AC with Wi-Fi, to control its operations with smart-phone and to monitor its power consumption through
dedicated internet-based application.
j. Development of Vaccine Deep Freezers (125 litres and 300 litres) which can store vaccines up to negative 25-degree Celsius and
freeze water packs at subzero temperature.
k. Development of seismic compliance racking systems to understand the steadiness of racking structure in case of seismic activity.
l. Development of canned pump motors which are used to build seal-less pumps for transfer of hazardous fluids.
m. Development of small compressors in refrigerators to get cost advantage and improving energy efficiency.
(ii) The details of technology imports and absorption

a. Development of Wi-fi standalone locks along with programmable and configurable smart cards for operations.
b. Development of Medical Refrigerators by using Sure chill technology.
c. Development of 3 needle BLDC (Brushless Direct Current Motor Technology) Motor Winding Machines.
d. Development of alternate energy sources such as Super Capacitors for Electric Forklift to replace Lead Acid batteries.
e. Development of new Forklift diesel engines complying with BSIV (Bharat stage IV) emission norms.
f. Development of new Transmission Dies for automobile and allied companies.
g. Development of Ultra sonic technology in fully automatic washing machines for cleaning shirt cuffs and collars.
h. Development of manual and motorized mobistack bank locker systems improving customer convenience of accessing bank lockers.
i. Development of digital key pad technology in locking systems with remote and encrypted communication.
(iii) During the year under review, the Company spent Rs. 70.41 crore on Research & Development.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO

The Company’s foreign exchange earnings and outgo for the year amounted to Rs. 742.36 crore and Rs. 1,645.48 crore respectively.
15
ANNEXURE II TO THE BOARD'S REPORT

Annual Report On Corporate Social Responsibility Activities
[ as prescribed under Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014 ]
1. CSR Reporting Framework

We, Godrej & Boyce Mfg Co. Ltd (G&B), are happy to present to you our fifth CSR compliance report. We have continued to work with
integrity, have trust, service to mankind, respect for each other and conserving environment to pursue our vision of Godrej being in every
home and workplace. We strive for enriching the quality of life, every day and everywhere. We grow with our values system, inculcating it in
our CSR and Sustainability initiatives. The CSR projects undertaken are in line with Godrej Group’s Good & Green goals and the areas of
intervention specified in the Schedule VII of the Companies Act, 2013.
This Annual Report presents our approach towards new initiatives which is gaining momentum like community development and work done
in employability by following our CSR philosophy, highlighting our commitment to our stakeholders. This Report mentions about CSR
committee, its role and responsibilities, taskforces and monitoring and review by them, project details including budgets and total spends.
2. Outline of CSR Policy

2.1. Objective of CSR Reporting
At G&B, our CSR policy applies to all activities that are undertaken as part of our Good & Green goals. In Godrej Good & Green, the focus is on
increasing the employability of underprivileged youth through vocational training thus improving their socio-economic condition, go green by
creating a greener India to encourage a sustainable approach towards business, and innovating environment-friendly and /or solutions
benefiting bottom of the pyramid. In the year 2014-15 we have started community development initiatives around the area of operations in
Maharashtra, Uttarakhand, Goa, Gujarat, Tamil Nadu and Punjab as it is critical to build sustainable communities by addressing their needs
around livelihood, environment, health & sanitation and education that is aligned to Schedule VII of the Companies Act, 2013.
While this CSR policy is drafted as per the Godrej Groups’ Good and Green policy, it includes the CSR programs that meets the requirement of
the CSR Rules as per the Section 135 of the Companies Act, 2013.
The G&B CSR Policy is available in the Company’s website:
http://www.godrejandboyce.com/godrejandboyce/pdf/CSR_policy.pdf
2.2 CSR Committee

This Committee comprises of the following Members:
1. Mr. V. M. Crishna, Executive Director, Godrej & Boyce Mfg. Co. Ltd, (Chairman of CSR Committee)
2. Mr. Jamshyd N. Godrej, Chairman and Managing Director, Godrej & Boyce Mfg. Co. Ltd
3. Mr. Anil G. Verma, Executive Director & President, Godrej & Boyce Mfg. Co. Ltd
4. Mr. Pradip P. Shah, Independent Director, Godrej & Boyce Mfg. Co. Ltd
5. Mr. Keki Elavia, Independent Director, Godrej & Boyce Mfg. Co. Ltd
The Company Secretary serves as the Secretary of the CSR Committee.
2.3 Responsibilities
1. Formulate and update the Company's CSR Policy, and have it approved by the Board.
2. Suggest areas of intervention to the Board.
3. Approve projects that are in line with the CSR Policy.
4. Put monitoring mechanism in place to track the progress of each project.
5. Recommend the CSR budget and expenditures to the Board of the Company, for approval
6. Meet twice a year to review the progress made.
2.4 Task Forces

Project specific task forces are constituted for implementation and monitoring of the CSR projects. The task forces would be
responsible for carrying out day-to-day operations of CSR and will submit reports to the CSR Committee for the bi-annual review
meetings.
2.5 CSR Budget & Expenditures (Table 1 and 2)

Table 1
1. Average net profit of last 3 years: Rs. 277 crore
2. Calculated 2% spend for the current financial year: Rs. 5.53 crore
3. Amount spent during the current financial year: Rs. 5.59 crore
4. Amount overspent of the recommended 2% budget, if any: Rs. 0.06 crore
16
Table 2
Details of the expenditures incurred by G&B during the current financial year 2018-19
(Amount in Rs. Lakhs)
CSR Project Sub activity for CSR Sector in which 1) Local area Institute/ Amount Amount spent Total Cumulative Amt spent direct Audit
Activity the project is 2) State /district 3) organization / outlay on projects, expenditure in expenditure or through the proof
covered project or person (Budget) 1) Direct the up to the implementing available
programme involved Project or expenditure corresponding reporting agency
Programme 2)Overheads, area period
wise
A. Livelihood
i. Disha Vocational Skill Employment 88 cities, 23 states, 29 Pvt 177 169 169 169 167 Lakhs Invoices
training for Rural & enhancing across india Vocational implementng & Bills
Urban youth in trades vocational skills (Schedule A: List of Training Agency 2 Lakhs
like –Fitter, Welder, development States & Cities) Centres & 51 Direct expense
Machinist, RAC, Flt ITIs (Schedule
Driver, FST, Lock ST B & C)
Stipend cost of
government
apprentices
ii.Rural Women Livelihood Shirwal (Satara), Partners, 80 72 72 72 72 Lakhs through Invoices
develop- Empowerment, SHG enhancement Khalapur (Raigad), Villagers, implementing & Bills
ment Formation, Eco - projects Bhiwandi (Thane) (Schedule D) agency
Tourism Maharashtra,
development, Bhagwanpur
Agriculture scheme (Haridwar),
awareness, Surveys, Uttarakhand, Dahej,
(Bharuch), Vadodara,
Gujarat
B. Support Uplifting education, Promoting Shirwal Schools, 90 83 83 83 83 Lakh direct Invoices

education Sanitation & Education (Satara),Khalapur villagers, expense & Bills
cleanliness in rural (Raigad), Kudal partners
schools, career (Sindhudurg) (Schedule D)
guidance, E- learning, Maharashtra,
Science lab, Activity Bhagwanpur
based learning, (Haridwar),
Model school Uttarakhand,
Madkai(Goa),
Vadodra (Gujarat)
C. Preventive health Promoting Shirwal(Satara), Hospitals 137 157 157 157 157 Lakhs Invoices
Promoting checkups, safe preventive Khalapur (Raigad), Villagers, Through & Bills
Health Care drinking water, health care Bhiwandi(Thane), partners implementng
awareness, Waste Maharashtra, (Schedule D) Agency
water management, Bhagwanpur
renovation of (Haridwar),
washrooms, road Uttarakhand,
pathway for safety Madkai, Goa, Dahej (
Bharuch ) Vadodara ,
Gujarat, Chennai
(Tamil Nadu)
D. Environ- Tree plantation, rain Ensuring Shirwal (Satara), Water 45 50 50 50 20 Lakhs Through Invoice /
ment water harvesting, environmental Khalapur (Raigad), Organization implementng receipts
environment sustainability, Maharashtra Trust Agency 30 Lakhs
awareness ecological Resources direct expense
balance (WOTR)
Partners,
villagers,
(Schedule
C&D)
E. CSR Salary, Travel CSR Mumbai, Dedicated CSR 28 28 28 28 28 Invoices
Overhead management Resource, /Salary
Project slips
Management
Other details of coverage and partners are given in Schedules A,B,C and D attached to this Report.
17
3. Responsibility Statement
Through this Report, G&B seeks to communicate its commitment towards CSR to the Ministry of Corporate Affairs. The Board of the Company and the CSR Committee are
responsible for the integrity and the objectivity of all the information provided in this Report. In alignment with our Good & Green goals provided in our CSR Policy, all projects
reported have been selected based on careful consideration of the extent to which they create sustainable outcomes in the communities around the area of operations. We have
undertaken measures to ensure these projects are implemented in an effective and efficient manner so that they are able to deliver maximum impact. In line with the Companies
Act, 2013, we have also instituted monitoring mechanisms to track the progress of projects and ensure their smooth implementation.
The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
J. N. Godrej V.M. Crishna

Chairman & Managing Director Chairman of the CSR Committee
18

DETAILS OF CSR EXPENDITURE INCURRED DURING THE YEAR
Schedule A: List of States and Cities
State presence 23
City presence 88
Sr. No. State No of training centres Cities/town/district

1 Andhra Pradesh 2 Hyderabad, Vishakhapattanam
2 Assam 4 Guwahati (2), Rowta, Byrnihat,
3 Bihar 2 Kurji, Khajpura
4 Chattisgarh 1 Ambikapur
5 Dadra and Nagar Haveli 1 Silvasa
6 Delhi 2 Noida, Okhala-Delhi
7 Goa 1 Corlim (North Goa),
8 Gujarat 7 Vaghaldhara, Narukot, Valsad, Atul, Dharampur,
Sevasi, Jhagadia
9 Haryana 1 Faridabad
10 Jammu & Kashmir 1 Jammu
11 Jharkhand 1 Jamshedpur
12 Karnataka 8 Bangalore, Chitradurga, Chimmanchod, Kodli,
kamlapur, narona, ratkal, kalaburgi
13 Kerala 3 kannur, Cochin, Kalamsury,

14 Madhya Pradesh 1 Bhopal,
15 Maharashtra 25 Ambernath, Andheri, Byculla, Borivali, Chakan,
Chinchwad, Chiplun, Dahanu, Kalyan, Karjat, Khalapur,
Kurla, Mulund, Mumbra, Nagpur, Pinguli, Shahapur,
Sakwar, Shirwal, Sindhudurg, Thane, Vasai, Vikhroli,
Wadavali, Walwanda,
16 Odisha 5 Bhubaneshwar (Jatani), Cuttack, Paralakhemundi,

Balangir, Raygada,
17 Punjab 3 Ludhiana, Mohali, Lalru
18 Rajasthan 5 Ajmer, Bhilwara, Chitorgarh, Jaipur, Udaipur,
19 Tamil Nadu 4 Ambattur, Basin Bridge, Egmore, Padappai,
20 Telangana 1 Hyderabad,
21 Tripura 1 Agartala
22 Uttar Pradesh 3 Lucknow 2, Najafgarh,
23 West Bengal 6 Farakka, Liluah, Seldah, Barasat, Bherampore, Siliguri,
Total 88
19

Schedule B: List of Disha Partners
Sr. Name of the Partner Address Head Office Trades No of

No. locations
1 Don Bosco Yuva Kendra - Najafgarh, New Delhi Welding, Fitting, Refrigeration& Air 5
Central Province Conditioning (RAC)
2 Don Bosco Tech -Western Don Bosco Centre for Learning (DBCL), Welding, Fitting, Electrical 8
Province Premier Automobiles, Kurla, Mumbai -70
3 Fr. Agnel Agnel Technical Education Complex, Fr. Welding, Fitting, Electrical, RAC 6
Agnel Ashram, Band Stand, Bandra,
Mumbai -50
4 Gram Tarang Employability HIG-5, Phase-I, BDA Duplex, Pokhariput, Fitting, Welding, Refrigeration& Air 8
Training Services Pvt. Ltd./ Bhubaneshwar- 751020 Conditioning (RAC), CNC Operator, Diesel
Centurion University forklift, Furniture service, VMT, EMS Tech
5 George Telegraph Training 31A, S.P. Mukherjee Road, Kolkata- 700 Refrigeration& Air Conditioning (RAC) 6
Institute 025
6 Laurus Edutech Laurus Edutech Life skills Pvt Ltd, DP 110, RAC, 1
2nd phase ,F19, Ambattur Industrial
Estate, Chennai -600058
7 RK Mission Sakwar, Dahanu, Electrical 1
8 Art of Living SSRDP (Sri Sri Art of Living Foundation, 21st km, Refrigeration & Air Conditioning (RAC) 2
Rural Development Program) Kanakpura Road, Udaipalia, Bangalore,
Karanataka
9 VVTC Vaghaldhara Vibhag Kelavni Mandal, Welding, Advance welding, CNC operator, 1
Vocational Training Centre, Vaghaldhara Fitting, Plumbing, (RAC)
396375, Taluka & District Valsad, Gujarat
10 Montfort Brother of St. Gabriel Educational Society, Refrigeration& Air Conditioning (RAC), 3
Montfort Bhavan, Provincial House, 116- Electrical
862, Red Hills, Hyderabad, AP -500004
11 Myrada No.2, Service Road, Domlur layout, Welding, Basic woodworking, Masonry & 18
Bangalore- 560071 plastering, Plumbing,
12 Atul IVE C.K.Park, Prasar Row House, Par River, Electrical 1
N.H.No 8, Atul-396020, Valsad, Gujarat,
13 Rustomjee Rustomjee Academy for Global Careers Electrical 2

Pvt. Ltd, Near ESIC Hospital, Ambika
Nagar, Wagle Estate, Thane (W) 400 602
14 S & S Care Skills Academy a 56, Sector 6-7 Road, Block a, Sector 6, Refrigeration & Air Conditioning 7
Noida, Uttar Pradesh 201301
15 Indo German Institute Vishakhapattnam Refrigeration & Air Conditioning (RAC) 1
16 Sure tech Education Jamal Manzal, Opp. Cooperative Arts Refrigeration & Air Conditioning (RAC) 1
College, Main Road, Olavakode, Palakkad
17 Aditya Birla Skills Foundation Delhi Refrigeration & Air Conditioning (RAC) 1
20
Sr. Name of the Partner Address Head Office Trades No of

No. locations
18 SSRDP Sri Sri Rural Development Program Refrigeration & Air Conditioning (RAC) 1
(SSRDP) -Jammu
19 Bangalore Electronic Services 309, 1st floor, 10th Cross, Wilson Refrigeration & Air Conditioning (RAC) 1
Garden, Bangalore 560027 Karnataka
20 MS Ramaiah Polytechnic MSRP -MSR Nagar, MSRIT Post, Bangalore- Refrigeration & Air Conditioning (RAC) 1
560054
21 Morning Star Bhopal (New) Refrigeration & Air Conditioning (RAC) 1
22 Future Sharp Future retail home office,tower C,247 Refrigeration & Air Conditioning (RAC) 1
park, L.B.S Marg, Vikroli west, Mumbai
400083
23 Pratham Pratham, Mumbai Refrigeration & Air Conditioning (RAC) 1
24 Fun first Fun first –Mumbai Refrigeration & Air Conditioning (RAC) 1
25 National Institute of Mohali Refrigeration & Air Conditioning (RAC) 1

technology
26 Universal Institute of Engg & Lalru Refrigeration & Air Conditioning (RAC) 1
technology
27 Dhaanish Ahmed College of Vanchuvancherry, Padappai, Refrigeration & Air Conditioning (RAC) 1
Engg
28 Ascent Educational welfare 127 / 3A Choulakhi Baradari, B.N. Road; Refrigeration & Air Conditioning (RAC) 1
society Near Old Nishat Cinema; Kaiserbagh,
Lucknow
29 Kalyan Bharti Ward No : 22,Near Soni Dharmshala, Locks service technician 5
College road , Bhilwara Kaushal Soni
9829073450
TOTAL TRAINING LOCATIONS 88
21

Schedule C: DISHA ITI List
S.No ITI Trade City/District State Division
1 ITI Kalyan Fitter Thane Maharashtra

Corporate training center
Welding Thane Maharashtra
Sheet Metal Thane Maharashtra SSD
2 ITI Borivali Welding Mumbai Maharashtra Corporate training center
3 ITI Mandvi Fitter Mumbai Maharashtra
Welding Mumbai Maharashtra
4 ITI Ulhasnagar Fitter Thane Maharashtra
Welding Thane MH
5 ITI Nehru Nagar Welding Mumbai Maharashtra Corporate training center
6 ITI, Thane Welding Thane Maharashtra
Fitter Thane Maharashtra
Machinist Thane Maharashtra
Tooling
Turner Thane Maharashtra
7 ITI Kannur RAC Kannur Kerela Godrej Appliances -RAC
8 ITI Govt. RAC Chandigarh Punjab Godrej Appliances -RAC
9 ITI Lalru RAC Lalru Punjab Godrej Appliances -RAC
10 ITI Merut RAC Meerut Uttar Pradesh Godrej Appliances -RAC
11 ITI Boys town RAC Hyderabad Telengana Godrej Appliances -RAC
12 Shrimati Techno RAC Kolkata West Bengal Godrej Appliances -RAC
13 ITI Govt. Hubli RAC Bangalore Karnataka Godrej Appliances -RAC
14 ITI RVVS, Davangeri RAC Davangere Karnataka Godrej Appliances -RAC
15 ITI Ajmera RAC Jaipur Rajasthan Godrej Appliances -RAC
16 ITI Karad RAC Pune Maharashtra Godrej Appliances -RAC
17 Govt. ITI RAC Jaipur Rajasthan Godrej Appliances -RAC
18 ITI Charbagh RAC Lucknow Uttar Pradesh Godrej Appliances -RAC
19 ITI Rajguru RAC Khed Maharashtra Godrej Appliances -RAC
20 Satara ITI Fitter Satara Maharashtra
Lawkim
Tool &Die Maker Satara Maharashtra
21 ITI Lonand Fitter Satara Maharashtra
Lawkim
Electrical Satara Maharashtra
22 ITI Wai Electronics Satara Maharashtra Lawkim
23 ITI Sangli Diesel Mechanic Sangli Maharashtra Material Handling
24 ITI Dharavi Diesel Mechanic Mumbai Maharashtra Material Handling
25 ITI Byculla Diesel Mechanic Mumbai Maharashtra Material Handling
Turner Mumbai Maharashtra
Machinist Mumbai Maharashtra Godrej Aerospace
Electro plater Mumbai Maharashtra
Sheet Metal Mumbai Maharashtra SSD
26 ITI Ambernath Diesel Mechanic Thane Maharashtra Material Handling
Turner Thane Maharashtra
Machinist Thane Maharashtra Godrej Aerospace
Machinist Thane Maharashtra
Tooling
Tool & Die Maker Thane Maharashtra
Welding Thane Maharashtra
Sheet Metal Thane Maharashtra SSD
22
S.No ITI Trade City/District State Division
27 ITI Vidyavihar Welding Mumbai Maharashtra Process Equipment

28 ITI Mulund Welding Mumbai Maharashtra Corporate training center
Machinist Mumbai Maharashtra Precision Engineering
29 ITI Chinchwad Fitter Pune Maharashtra Godrej PRIMA
30 ITI Ambattur Fitter Chennai Tamil Nadu Storage Solutions
31 ITI Panvel Machinist Raigad Maharashtra Tooling
32 ITI Kurla Fitter Mumbai Maharashtra Corporate training center
33 ITI Govandi Welding Mumbai Maharashtra Corporate training center
34 ITI Jawhar Welding Thane Maharashtra Corporate training center
35 ITI Jawhar Welding Thane Maharashtra Corporate training center
36 Govt Polytechnic RAC Mumbai Maharashtra GVTS
37 ITI Govt. Panipat RAC Panipat Hariyana GVTS
38 Govt. ITI, Narender
RAC Dist -Sonipat Hariyana GVTS
Nagar
39 khichiripur ITI RAC Delhi Delhi GVTS
40 Kakatiya ITI RAC Hyderabad Andhra GVTS
41 UNITY ITI Lucknow RAC Lucknow Uttar Pradesh GVTS
42 ITI-Rewari (women)
RAC Rewari -Patudi Rd Hariyana GVTS
43 Mangalore ITI RAC Mangalore karnataka GVTS
44 Udipi ITI RAC Udipi Karnataka GVTS
45 Aloysius ITI RAC Mangalore karnataka GVTS
46 Trinity ITI RAC Karnataka karnataka GVTS
47 Kubernagar ITI RAC Ahmedabad Gujrat GVTS
48 Maninagar ITI RAC Ahmedabad Gujrat GVTS
49 BHUSHAN ITI RAC Jaipur Rajsthan GVTS
50 Kalka ITI RAC Chandigarh Punjab GVTS
51 ITI Kharkhoda -
RAC Dist -Sonipat Hariyana GVTS
Matindu Road
23

Schedule D: List of partners for Community Development
Sr. Partners Address of Head office Partnership Pillars Area of intervention

No.
1 WOTR "Paryavaran" Behind Market Yard, Knowledge & project Health & Sanitation Waste water
Sarasnagar Rd, Ahmednagar, MH Implementation Management
414001
2 Greenway Grameen 805, 2, LodhaSupremus, Project Implementation Health & Sanitation Smokeless Chulha
Pvt. Ltd. SenapatiBapat Marg, Railway Colony,
Lower Parel, Mumbai, Maharashtra
400013
3 Bharti Vidyapeeth LBS Road, 13 Sadashiv Peth, Next to Knowledge partner Environment Environment
University Alka Talkies, Pune, Maharashtra Awareness
411030
4 Agnel Institute of Agnel Technical Education Complex, Project Implementation Livelihood Welding, Fitting,
technical training & Fr. Agnel Ashram, Band Stand, Electrical
entrepreneurship Bandra West, Mumbai-400050
5 Urmee (Urban Rural 15-A, Bhale Estate, Behind Pratham Project Implementation Education Promoting
Management Motors, Mumbai-Pune Road, Wakde Education
Empowerment & wadi, Pune-411003
Establishment)
6 Idea Foundation IDEA, Flat No 10, Fountain Head Project Implementation Education Promoting
Apartment, Opp. Karishma Society, Education
Kothrud, Pune 411038, Ph. No.
09890119732
7 Idobro 121, East West Industrial Estate, Project Implementation Surveys Surveys
Andheri-Kurla Road, Safed Pool,
Mumbai – 72
8 Karve Institute of No 18, Hill Side, Karve Nagar, Behind Knowledge & project Surveys Surveys
Social Studies Vana Devi Temple, Pune, Implementation
Maharashtra 411052
9 Navneet Navneet Education Limited Navneet Project Implementation Education e-learning
Bhavan, Bhavani Shankar Road,
Dadar (W). Mumbai -28. India.
10 NABARD No. 54, Wellesly Road, Shivaji Nagar, Financial Support Consultant Watershed
Pune, Maharashtra 411005 partner
11 Sevamob B-5, TEZ KUMAR PLAZA, Trilok Nath Project Implementation Health & Sanitation Preventive health
Road, HAZRATGANJ, Lucknow PIN -
226001
12 Ethica Strategy Ethica Strategy India Private Limited, Project Implementation Surveys Surveys,
D-626, 3rd Floor, Chittaranjan Park, Communication,
New Delhi, 110019 India Strategy
13 Fuel Office No 62, Amrut Ganga Complex, Project Implementation Education Career counselling
Sinhgad Road, Pune 411051 with and scholarship
Reg. No: E4913
14 Award Sanket Complex, 1st Floor, Near Gite Project Implementation Livelihood Agricultural
Building, Pantacha Got, Satara schemes awareness,
–415001, (Maharashtra) Contact Ph. organic farming
No. 02162 -233526
24
Sr. Partners Address of Head office Partnership Pillars Area of intervention

No.
15 UNDP UNDP India, Office in Mantralaya Financial Support Livelihood Skill development,
Mumbai partner Tourism
Development,
women
empowerment,
agriculture projects
16 Vasundhara Vasundhara Science Center, At Post Knowledge partner Education Science education
–Nerurpar, Tal -Kudal, Dist.
Sindhudurg, Maharashtra.
17 Ankidyne #46, 1st Main Road, New Colony, Project Implementation Education Science education
Chromepet, Chennai- 600 044.
18 ICRISAT International Crops Research Knowledge partner Livelihood Integrated
Institute for the Semi-Arid Tropics, Agricultural
Address: Patancheru, Hyderabad, management
Telangana - 502324, India
19 Stem learning C/ Gandharv Dharshan,, 103, Shankar Project Implementation Education Science education
Rao Naram Path, Mumbai,
Maharashtra 400013
20 TARA B-32, TARA Crescent Qutub Project Implementation Skills Development Livelihood
Institutional Area New Delhi 110016. & Entrepreneurship
21 Deepak Foundation Nr. Laxmi Studio, Adjoining L&T Project Implementation Health Sanitation & Health Sanitation &
Knowledge City, On NH-8, Ta. & Dist. Livelihood Livelihood
Vadodara-390 019
22 ALEAP Door No.8-3-677/6, Sri Krishna Project Implementation Livelihood Livelihood
devaraya nagar, Near Ganapathi
Complex,Yellareddyguda,Srinagar
colony post, Hyderabad - 500073.
23 SBMA Plan India & Shri Bhuvneshwari Project Implementation Health Sanitation & Health Sanitation &
Mahila Ashram, Uttarkashi Opp - LIC Livelihood Livelihood
Building, Joshiyara Uttarkashi,
Uttrakhand Phone # 01374223208,
24 CEE Pinewood Apartments S. Project Implementation Education Education
No.233/1/2, Vidhate Colony Behind
Medipoint Hospital Baner, Pune -
411045
25 Grassroutes Purushwadi, Maharashtra 422604 Project Implementation Livelihood Livelihood
Journey pvt ltd Phone: 088794 77437
26 Sattva 101, Classic Pentagon, 11, Western Assessments Surveys Surveys,
Express Hwy, Chakala, Andheri East, Communication,
Mumbai, Maharashtra Strategy
400053 | M: +91 9619968128
E: smita.kumar@sattva.co.in
27 MILAP Maharashtra State Rural Livelihoods Knowledge & market Livelihood Livelihood
CIDCO building Belapur linkages for SHGs
25
ANNEXURE III TO THE BOARD'S REPORT
Form No MR – 3
SECRETARIAL AUDIT REPORT
For The Financial Year Ended 31st March, 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
The Members,
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by Godrej & Boyce Manufacturing Company Limited (hereinafter called the Company). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion
thereon.
Based on our verification of the Company’s books, papers, Minute Books, forms and returns filed and other records maintained by the
Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of
Secretarial Audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st
March, 2019 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and
compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, Minute Books, forms and Returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2019 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made there under;
(ii) The Securities Contract (Regulation) Act 1956 (‘SCRA’) and the rules framed thereunder – NOT APPLICABLE;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the Rules and Regulations made there under to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): -
the Company is an unlisted Public Company and hence compliance limited to the extent applicable in respect of the Company’s
holdings in listed public companies;
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
(d) The Securities and Exchange Board of India (Share Based Employee Benefit) Regulations, 2014;
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client;
(vi) The Management has identified and confirmed the following laws as specifically applicable to the company: -
1 Arms Act, 1959 and Indian Arms Rules 1962.
2 Atomic Energy Act, 1962 and Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987.
3 Atomic Energy Act, 1962 and Atomic Energy (Radiation Protection) Rules, 2004.
4 Energy Conservation Act, 2001 and Bureau of Energy Efficiency (Manner and Intervals of Time for Conduct of Energy Audit)
Regulations, 2010.
5 Energy Conservation Act, 2001 read with Energy Consumption Standard for star labelled room A/Cs of the vapour
compression type which are of window A/C and 1:1 high wall split A/C.
6 Energy Conservation Act, 2001 read with Bureau of Energy Efficiency (Particulars and Manner of their Display on Labels of
Household Frost Free Refrigerators) Regulations, 2009.
7 Energy Conservation Act, 2001 read with Bureau of Energy Efficiency (Particulars and Manner of their Display on Labels of
Room Air Conditioners) Regulations, 2009.
8 Energy Conservation Act, 2001 read with Energy Consumption Standard for star labelled household frost free refrigerator
and Notification issued by BEE dated 16 December 2015.
9 Explosives Act, 1884 and Gas Cylinder Rules, 2004.
10 Explosives Act, 1884 and Static and Mobile Pressure Vessels (Unfired) Rules, 1981.
11 Forest (Conservation) Act 1980 and Forest (Conservation) Rule 2003.
26
12 Jammu and Kashmir Industrial Establishments (National and Festival) Holidays Act, 1974 and Jammu and Kashmir Industrial
Establishments (National and Festival) Holidays Rules.
13 Petroleum Act, 1934 read with Petroleum Rules 2002.
14 Environment (Protection) Act, 1986 and Bio-Medical Waste (Management and Handling) Rules, 1998.
15 Maharashtra Acquisition of Private Forests Act, 1975.
16 Maharashtra Felling of Trees (Regulation) Act, 1984.
17 Building & Other Construction Workers’ Welfare Cess Act, 1996 Child Labour (Prohibition & Regulation) Act,1986
18 Building & Other Construction Workers’ (Regulation of Employment & Conditions of Service) Act, 1996.
19 Industrial Employment (Standing Orders) Act, 1946
20 Inter-State Migrant Workmen Regulation of Employment and Conditions of Service Act, 1979.
21 Manufacture, Storage and Import of Hazardous Chemical Rules, 1989.
22 Bio-Medical Waste (Management and Handling) Rules, 1998 / 2003.
23 The Gujarat SEZ Act, 2004 – Dahej.
24 The Special Economic Zones Act, 2005 (Act No. 28 of 2005).
25 The Special Economic Zones Rules, 2006.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India;

(ii) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 / Listing Agreements entered into by the
Company with BSE Limited & The National Stock Exchange of India Limited: - NOT APPLICABLE.
During the period under review the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.
We further report that

➢ The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. During the year, there is no change in composition of board of directors
➢ Adequate Notice is given to all Directors to schedule the Board Meetings. The Agenda and Detailed Notes on Agenda were
sent as per the provisions of the Secretarial Standard on Meetings of the Board of Directors (SS1) and a system exists for
seeking and obtaining further information and clarifications on the agenda items before the Meeting and for meaningful
participation at the Meeting.
➢ All the decisions were taken unanimously in the Meetings of the Board.
We report that, based on review of compliance mechanism established by the company and on the basis of compliance
certificate (s) issued by the company secretary /occupier and taken on record by the board of directors at their meeting(s),
we are of the opinion that there are adequate system and process in place in the company which is commensurate with the
size and operations of the company to monitor and ensure compliance with applicable laws , rules, regulations and
guidelines.
We further report that during the audit period, the Company has:
1. issued Advertisement for acceptance of Deposits from Public.
2. approved the Scheme of Amalgamation of India Circus Retail Private Limited with the Company.
3. passed Special Resolution under Section 185, 186 for granting loan to Godrej UEP Pvt. Ltd.
For A. N. Ramani & Co.,

Company Secretaries
Unique code - P2003MH000900
Place:- Thane
Date:- 20th August, 2019
Bhavana Shewakramani
Partner
FCS – 8636, COP –9577
Note: This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of
this Report.
27
‘Annexure A’
To,
The Members
Our Report of even date is to be read along with this letter.

1. Maintenance of Statutory and other secretarial records is the responsibility of the management of the Company. Our
responsibility is to express an opinion on the secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurances about the
correctness of the contents of the records. The verification was done on test basis to ensure that correct facts are reflected
in records. We believe that the processes & practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness, adequacy and appropriateness of financial records and books of Accounts of the
Company. We have relied on the report of the Statutory Auditors in respect of the same and the other matters dealt with in
their report as per the guidance of the Institute of Company Secretaries of India.
4. Wherever required, we have obtained the management representation about the compliance of laws, rules and regulations
and happening of events, etc.
5. The Company has implemented electronic system for compliance management to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines, however, as reporting tools, certificates for compliance are being
obtained from various departments to ensure compliance with applicable laws.
6. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of the management. Our examination was limited to the verification of procedures on test basis.
7. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For A. N. Ramani & Co.,

Company Secretaries
Unique Identification code - P2003MH000900
Place:- Thane
Date:- 20th August, 2019
Bhavana Shewakramani
Partner
FCS – 8636, COP - 9577
28
LIST OF ENCLOSURES TO THE

Year ended 31st March, 2019
Enclosure 1: Consolidated Financial Statements for the year ended 31st March, 2019
(Paragraph 1 of the Directors' Report)
Enclosure 2: Extract of Annual Return

Enclosure 3: Form No. AOC-2 pursuant to Section 134 (3) (h) of the Companies Act, 2013
Enclosure 5: Form No. MGT - 11 ( PROXY FORM)
29

ENCLOSURE 2
EXTRACT OF ANNUAL RETURN

Referred to in paragraph 5 of the
Directors' Report
30
ENCLOSURE 2
GODREJ & BOYCE MFG. CO. LTD
EXTRACT OF ANNUAL RETURN IN FORM MGT-9
REQUIRED TO BE ATTACHED WITH THE BOARD'S REPORT AS ON THE FINANCIAL YEAR ENDED 31.03.2019
[Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management & Administration ) Rules, 2014]
I. REGISTRATION & OTHER DETAILS:
i CIN U28993MH1932PLC001828
ii Registration Date 03-03-1932
iii Name of the Company GODREJ & BOYCE MANUFACTURING COMPANY LIMITED
iv Category/Sub-category of the COMPANY LIMITED BY SHARES/ INDIAN NON- GOVERNMENT
Company COMPANY
v Address of the Registered office and PIROJSHANAGAR, VIKHROLI, MUMBAI- 400 079
contact details Email: info@godrej.com
Tel: 022 67965656/5959
Fax: 022 6796 1518
Website: http://www.godrejandboyce.com
vi Whether listed company (Yes/No) NO

vii Name , Address & Contact details of COMPUTECH SHARECAP LIMITED
Registrar & Transfer Agent, if any. 147, MAHATMA GANDHI ROAD, 3RD FLOOR, FORT, MUMBAI- 400
001
Email: helpdesk@computechsharecap.in
Tel: 022 22635000/01
Fax: 022-22635005
Website: http://www.computechsharecap.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the Company shall be stated
Sl. No. Name and Description of main NIC Code of the % to total turnover
products/services Product /service of the company
1 Domestic electric appliances such as 27501, 28192 35.65%
refrigerators, washing machines and
airconditioners
2 Furniture 31003 20.43%
3 Electricals & Electronics 422, 432 7.82%
4 Storage and warehousing 52109 6.40%
5 Locks 25934 6.24%
TOTAL 76.54%
III. PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES
Sl. No. Name and Address of the Company CIN/GLN HOLDING/ % OF APPLICABLE
SUBSIDIARY/ SHARES HELD SECTION
ASSOCIATE
1 Godrej Infotech Ltd., U32100MH1997PLC106135 Subsidiary Company 52.06% 2(87)
Pirojshanagar, Vikhroli, Mumbai
400079
2 Godrej (Singapore) Pte. Ltd. NA Subsidiary Company 100% 2(87)
11 Lok Yang Way, Jurong,
Singapore 628632
3 Veromatic International B.V. NA Subsidiary Company 99.95% 2(87)
Donker Duyvisweg 56;
3316 BM Dordrecht,
The Netherlands
4 Godrej Americas Inc. NA Subsidiary Company 100% 2(87)
808 Harris Avenue
Austin, Texas, USA 78705
5 Sheetak Inc. NA Subsidiary Company 56.51% 2(87)
4020. S. Industrial Dr, Suite 100,
Austin, Texas, 78744 USA
6 Godrej Consoveyo Logistics U28990MH1996PLC104088 Associate Company 49% 2(6)
Automation Limited
A Wing, 701, Reliable Tech Park, off.
Thane, Belapur Road, Airoli, Navi
Mumbai Thane- 400708
7 Urban Electric Power Inc. NA Associate Company 23.76% 2(6)
401 N. Middletown Building, 155 Pearl
River, NY 10965, USA
8 Godrej Infotech Americas Inc. NA Subsidiary of Godrej Infotech Limited Nil 2(87)
1019, Classic Road, Apex, NC 27539
9 Godrej Infotech (Singapore) Pte. Ltd. NA Subsidiary of Godrej Infotech Limited Nil 2(87)
11, Lok Yank Way, Singapore –
628632
10 LVD Godrej Infotech N.V. NA Subsidiary of Godrej Infotech Limited Nil 2(87)
Hondschotestraat, 8560, Gullegem
11 JT Dragon Pte. Ltd. NA Subsidiary of Godrej (Singapore) Pte. Nil 2(87)
11, Lok Yang, Jurong, Singapore Ltd.
628632
12 Godrej (Vietnam) Co. Ltd. NA Subsidiary of J.T. Dragon Pte. Ltd. Nil 2(87)
10 Tu Do Avenue, Vietnam Singapore
Industrial Park, Thuan An District,
Binh Duong Province, Vietnam
13 Godrej UEP (Singapore) Pte. Ltd. NA Assoicate of Godrej (Singapore) Pte. Nil 2(6)
11, Lok Yang, Singapore 628632 Ltd.
14 Godrej & Khimji (Middle East) LLC NA Assoicate of Godrej (Singapore) Pte. Nil 2(6)
P.O Box: 45, Road 2A, Sohar Ltd.
Industrial Estate, Sohar, Sultanate of
Oman, Postal Code- 327
31
IV. SHAREHOLDING PATTERN (Equity Share Capital Break-up as percentage of Total Equity)
(i) CATEGORY-WISE SHARE HOLDING
Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
during the
year
Demat Physical Total % of Total Demat Physical Total % of Total

Shares Shares
A. Promoters
(1) Indian
a) Individual/HUF 5,09,048 1,506 5,10,554 75.25 5,09,048 1,506 5,10,554 75.25 0
b) Central Govt. 0 0 0 0 0 0 0 0 0
c) State Govt(s) 0 0 0 0 0 0 0 0 0
d) Bodies Corp. 0 0 0 0 0 0 0 0 0
e) Banks/FI 0 0 0 0 0 0 0 0 0
f) Any other… 0 0 0 0 0 0 0 0 0
Sub-total(A)(1): 5,09,048 1,506 5,10,554 75.25 5,09,048 1,506 5,10,554 75.25 0
(2) Foreign
a) NRI - Individuals 10,380 0 10,380 1.53 10,380 0 10,380 1.53 0
b) Other - Individuals 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0
d) Banks/FI 0 0 0 0 0 0 0
e) Any other… 0 0 0 0 0 0 0
Sub-total(A)(2): 10,380 0 10,380 1.53 10,380 0 10,380 1.53 0
Total Shareholding of
Promoter
(A)= (A)(1)+(A)(2) 5,19,428 1,506 5,20,934 76.78 5,19,428 1,506 5,20,934 76.78 0
B. PUBLIC SHAREHOLDING
(1) Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks/FI 0 0 0 0 0 0 0 0 0
C) Central Govt 0 0 0 0 0 0 0 0 0
d) State Govt(s) 0 0 0 0 0 0 0 0 0
e) Venture Capital Funds 0 0 0 0 0 0 0 0 0
f) Insurance Companies 0 0 0 0 0 0 0 0 0
g) FIIs 0 0 0 0 0 0 0 0 0
h) Foreign Venture
Capital Funds 0 0 0 0 0 0 0 0 0
i) Others (specify) 0 0 0 0 0 0 0 0 0
Sub-total(B)(1): 0 0 0 0 0 0 0 0 0
(2) Non - Institutions

a) Bodies Corp. 0 0 0 0 0 0 0 0 0
i) Indian 0 11 11 0 11 0 11 0 0
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals 0 0 0 0 0 0 0 0 0
i) Individual shareholders
holding nominal share capital
upto Rs.1 lakh 0 0 0 0 0 0 0 0 0
ii) Individual shareholders
holding nominal share capital in
excess of Rs. 1 lakh 0 1,57,500 1,57,500 23.21 0 1,57,500 1,57,500 23.21 0
c) Others (specify) 0 0 0 0 0 0 0 0 0
Sub-total(B)(2): 0 1,57,511 1,57,511 23.22 11 1,57,500 1,57,511 23.22 0
Total Public Shareholding

(B)= (B)(1)+(B)(2) 0 1,57,511 1,57,511 23.22 11 1,57,500 1,57,511 23.22 0.00
C. Shares held by Custodian

for GDRs & ADRs
0 0 0 0 0 0 0 0 0
Grand Total (A+B+C) 5,19,428 1,59,017 6,78,445 100.00 5,19,439 1,59,006 6,78,445 100.00 0
32
(ii) SHARE HOLDING OF PROMOTERS (EQUITY SHARES)
Sl. No. Shareholder's Name Shareholding at the Shareholding at the
begginning of the year end of the year
No. of Shares % of total % of shares No. of Shares % of total % of shares % change in
Shares pledged/ shares pledged/ share holding
of the encumbered to of the encumbered to during the
company total shares company total shares year
1 Ms. Tanya A. Dubash 6,922 1.02% 0 6,922 1.02% 0 0.00%

2 Ms. Tanya A Dubash (Trustee of 14,107 2.08% 0 14,107 2.08% 0 0.00%
TAD Family Trust)
3 Ms. Nisaba Godrej 6,923 1.02% 0 6,923 1.02% 0 0.00%
4 Ms. Nisaba Godrej (Trustee of NG 14107 2.08% 0 14,107 2.08% 0 0.00%
Family Trust)
5 Mr. Pirojsha A. Godrej 6,922 1.02% 0 6,922 1.02% 0 0.00%
6 Mr. Pirojsha A. Godrej (Trustee of 14,107 2.08% 0 14,107 2.08% 0 0.00%
PG Family Trust)
7 Mr. Adi B. Godrej 5 0.00% 0 5 0.00% 0 0.00%
8 Mr. Adi B. Godrej (Trustee of ABG 41,095 6.06% 0 41,095 6.06% 0 0.00%
Family Trust)
9 Mr. Nadir B. Godrej jointly held with 21,345 3.15% 0 21,345 3.15% 0 0.00%
Ms. Rati N. Godrej
10 Mr. Nadir B. Godrej (Trustee of NBG 32,023 4.72% 0 32,023 4.72% 0 0.00%
Family Trust)
11 Mr. Nadir B. Godrej (Trustee of BNG 15,480 2.28% 0 15,480 2.28% 0 0.00%
Family Trust)
12 Mr. Nadir B. Godrej (Trustee of SNG 16,892 2.49% 0 16,892 2.49% 0 0.00%
Family Trust)
13 Mr. Nadir B. Godrej (Trustee of HNG 16,939 2.50% 0 16,939 2.50% 0 0.00%
Family Trust)
14 Ms. Nyrika Holkar jointly held with 10,381 1.53% 0 10,381 1.53% 0 0.00%
Ms. Smita G. Crishna
15 Ms. Freyan C. Bieri jointly held with 10,370 1.53% 0 10,370 1.53% 0 0.00%
Ms. Smita G. Crishna
16 Ms. Freyan C. Bieri jointly held with 10 0.00% 0 10 0.00% 0 0.00%
Ms. Smita G. Crishna and Mr. Vijay
M. Crishna
17 Ms. Smita G. Crishna, Ms. Freyan C. 24,040 3.54% 0 24,040 3.54% 0 0.00%
Bieri and Ms. Nyrika Holkar
(Trustees of FVC Family Trust)
18 Mr. Vijay M. Crishna jointly held 13 0.00% 0 13 0.00% 0 0.00%

with Ms. Smita G. Crishna
19 Ms. Smita G. Crishna, Ms. Freyan C. 24,040 3.54% 0 24,040 3.54% 0 0.00%
Bieri and Ms. Nyrika Holkar
(Trustees of NVC Family Trust)
20 Ms. Smita G. Crishna jointly held 20 0.00% 0 20 0.00% 0 0.00%

with Mr. Vijay M. Crishna
21 Ms. Smita G. Crishna, Mr. Vijay M. 35,313 5.20% 0 35,313 5.20% 0 0.00%
Crishna and Ms. Nyrika Holkar
(Trustees of SGC Family Trust)
22 Mr. Jamshyd N. Godrej, Ms. Pheroza 10,376 1.53% 0 10,376 1.53% 0 0.00%
J. Godrej and Mr. Navroze J. Godrej
(Trustees of The Raika Godrej Family
Trust)
23 Ms. Pheroza J. Godrej jointly held 33 0.00% 0 33 0.00% 0 0.00%
with Mr. Jamshyd N. Godrej
24 Ms. Raika J. Godrej 1 0.00% 0 1 0.00% 0 0.00%
33
(ii) SHARE HOLDING OF PROMOTERS (EQUITY SHARES)
Sl. No. Shareholder's Name Shareholding at the Shareholding at the
begginning of the year end of the year
No. of Shares % of total % of shares No. of Shares % of total % of shares % change in
Shares pledged/ shares pledged/ share holding
of the encumbered to of the encumbered to during the
company total shares company total shares year
(Trustees of Raika Lineage Trust)
26 Mr. Navroze J. Godrej jointly held 10,369 1.53% 0 10,369 1.53% 0 0.00%
with Mr. Jamshyd N. Godrej
27 Mr. Navroze J. Godrej jointly held 10 0.00% 0 10 0.00% 0 0.00%
with Ms. Pheroza J. Godrej and Mr.
Jamshyd N. Godrej
(Trustees of Navroze Lineage Trust)
29 Mr. Jamshyd N. Godrej 5 0.00% 0 5 0.00% 0 0.00%

(Trustees of JNG Family Trust
31 Mr. Rishad K. Naoroji 1 0.00% 0 1 0.00% 0 0.00%

32 Mr. Rishad K. Naoroji, Mr. Nadir B. 1,04,185 15.36% 0 1,04,185 15.36% 0 0.00%
Godrej and Ms. Nyrika Holkar,
Partners, M/s. RKN Enterprises
33 Mr. Sohrab N. Godrej jointly held 47 0.01% 0 47 0.01% 0 0.00%
with Ms. Rati N. Godrej
34 Mr. Burjis N. Godrej jointly held with 1,459 0.22% 0 1,459 0.22% 0 0.00%
Ms. Rati N. Godrej
Total 5,20,934 76.78% 0 5,20,934 76.78% 0 0.00%
(iii) CHANGE IN PROMOTERS' SHAREHOLDING
Sl. No. Name Shareholding Date Increase (+)/ Reason Cumulative Shareholding
No. of Shares % of total Decrease (-) No. of shares % of total
at the shares of the in shares of the
beginning of company Shareholding company
the year
NIL
34
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs & ADRs):
Sl. No. Shareholding at the beginning of Cumulative Shareholding during the

the year year
For Each of the Top 10 No.of shares % of total No of shares % of total shares
Shareholders shares of the of the company
company
1 At the beginning of the year 1,57,500 23.21%
Date wise increase/decrease in - - - -
Share holding during the year
specifying the reasons for
increase/decrease (e.g.
allotment/transfer/bonus/sweat
equity etc)
At the end of the year (or on the 1,57,500 23.21%
date of separation, if separated
during the year)
(v) Shareholding of Directors and Key Managerial Personnel:

Sl. No. Name of Director and KMP and Shareholding Date Increase (+)/ Reason Cumulative Shareholding during the year/ end of
their designation Decrease (-) the period
in Shareholding
No. of Shares at % of total No. of shares % of total shares of
the beginning of the shares of the the company
year company
1 Mr. Jamshyd N. Godrej * 93,775 13.82% 01 April 2018

Chairman & Managing Director 31 March 2019 93,775 13.82%
2 Mr. Adi B. Godrej** 41,100 6.06% 01 April 2018
Non-Executive Director 31 March 2019 41,100 6.06%
3 Mr. Nadir B. Godrej# 1,02,679 15.13% 01 April 2018
Non-Executive Director 31 March 2019 1,02,679 15.13%
4 Mr. Vijay M. Crishna 13 0.00% 01 April 2018
Executive Director 31 March 2019 13 0.00%
5 Ms. Nyrika Holkar 10,381 1.53% 01 April 2018
Executive Director- Corporate 31 March 2019 10,381 1.53%
Affairs
6 Mr. Navroze J. Godrej 10,379 1.53% 01 April 2018
Non-Executive Director 31 March 2019 10,379 1.53%
7 Mr. Anil G. Verma 0 0.00% 01 April 2018
Executive Director & President 31 March 2019 0 0.00%
8 Mr. Kavas N. Petigara 0 0.00% 01 April 2018
Independent Director 31 March 2019 0 0.00%
9 Mr. Pradip P. Shah 0 0.00% 01 April 2018
10 Ms. Anita Ramachandran 0 0.00% 01 April 2018
11 Mr. Keki M. Elavia 0 0.00% 01 April 2018
12 Mr. P.E. Fouzdar 0 0.00% 01 April 2018
Executive Vice President 31 March 2019 0 0.00%
(Corporate Affairs) & Company
Secretary
13 Mr. P.K. Gandhi 0 0.00% 01 April 2018
Chief Financial Officer 31 March 2019 0 0.00%
* Out of 93,775 Equity Shares held, 32,710 Equity Shares held as a Trustee of 'JNG Family Trust,' 10,376 Equity Shares held as a Trustee of 'The Raika Godrej Family Trust', 25,342
Equity Shares held as a Trustee of 'Navroze Lineage Trust' and 25,342 Equity Shares held as a Trustee of 'Raika Lineage Trust'.
** Out of 41,100 Equity Shares held, 41,095 Equity Shares held as a Trustee of 'ABG Family Trust'.
# Out of 1,02,679 Equity Shares held, 32,023 Equity Shares held a a Trustee of 'NBG Family Trust', 16,892 Equity Shares held a Trustee of 'SNG Family Trust', 15,480 Equity Shares held
as a Trustee of 'BNG Family Trust' and 16,939 Equity Shares held as a Trustee of 'HNG Family Trust'.
35
V INDEBTEDNESS
Rs. In Crore
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtness at the beginning of the financial year
i) Principal Amount 1,329.02 643.26 689.46 2,661.74

ii) Interest due but not paid - - - -
iii) Interest accrued but not due 11.06 0.62 - 11.68
Total (i+ii+iii) 1,340.08 643.88 689.46 2,673.42
Change in Indebtedness during the financial year
> Addition - 659.75 13.89 673.64

> Reduction -416.24 - - -416.24
Net Change -416.24 659.75 13.89 257.40
Indebtedness at the end of the financial year
i) Principal Amount 912.78 1,303.01 703.35 2,919.14

ii) Interest due but not paid - - - -
iii) Interest accrued but not due 8.94 4.39 - 13.33
Total (i+ii+iii) 921.72 1,307.40 703.35 2,932.47
VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager
Sl. No. Particulars of Remuneration Name of MD/WTD/Manager

Total Amount
Jamyshyd N. Godrej Vijay M. Crishna Anil G. Verma Nyrika Holkar (Rs. In crore)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of 4.23 3.23 6.83 2.64 16.93
the Income Tax, 1961
(b) Value of perquisites u/s 17(2) of the Income Tax 0.16 0.01 0.03 0.01 0.21
Act, 1961
(c ) Profits in lieu of salary under section 17(3) of the
Income Tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- as % of profit
- others, specify…
5 Others, please specify
Total (A) 4.39 3.24 6.86 2.65 17.14
Ceiling as per the Act 38.87
B. Remuneration to other directors
Sl. No. Particulars of Remuneration Name of Directors

Total Amount
Anita (Rs. In crore)
Kavas N. Petigara Pradip P. Shah Keki M. Elavia
1 Independent Directors Ramachandran
(a) Fee for attending board/committee meetings 0.12 0.06 0.10 0.15 0.43
(b) Commission 0.08 0.08 0.08 0.08 0.30

(c ) Others, please specify
Total (1) 0.20 0.14 0.18 0.23 0.73
2 Other Non-Executive Directors Adi B. Godrej Nadir B. Godrej Navroze J. Godrej
(a) Fee for attending 0.05 0.04 0.01 0.10
board/committee meetings
(b) Commission 0.08 0.08 0.08 0.23
(c ) Others, please specify 0.00
Total (2) 0.13 0.12 0.09 0.33
Total (B)=(1+2) 1.06
Total Managerial Remuneration 18.20
Overall Ceiling as per the Act. 42.76
36
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Sl. No. Particulars of Remuneration Key Managerial Personnel

Total Amount
CEO Company CFO (Rs. In crore)
Secretary
1 Gross Salary NA Percy E. Fouzdar Purvez K. Gandhi
(a) Salary as per provisions contained in section 17(1) of 1.91 2.03 3.94
the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income Tax 0.01 - 0.01
Act, 1961
(c ) Profits in lieu of salary under section 17(3) of the
Income Tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- as % of profit
- others, specify…
5 Others, please specify
Total 1.92 2.03 3.95
VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:
Type Section of Brief Description Details of Authority Appeal made, if

the Penalty/Punishment/C [RD/NCLT/Court] any (give details)
Companies ompounding fees
Act imposed
A. COMPANY
Penalty
Punishment
Compounding NIL
B. DIRECTORS
Penalty
Punishment
Compounding NIL
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding NIL
37

ENCLOSURE 3
Form No. AOC - 2 pursuant to section 134 (3) (h)

of the Companies Act, 2013.
Referred to in paragraph 16 of the Directors' Report
38
ENCLOSURE 3
GODREJ & BOYCE MFG. CO. LTD.

FORM NO. AOC -2
required to be attached with the Director’s Report
[Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014]
Form for Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub section (1) of section
188 of the Companies Act, 2013 including certain arm’s length transaction under third proviso thereto.
1. Details of contracts or arrangements or transactions not at Arm’s length basis.

SL. Particulars Details
No.
a) Name (s) of the related party & nature of relationship Mrs. P J Godrej, spouse of Mr. J N Godrej, Chairman and Managing Director
and mother of Mr. N. J. Godrej, Non-Executive Director
b) Nature of contracts/arrangements/transaction Employment Contract
c) Duration of the contracts/arrangements/transaction Permanent Employee
d) Salient terms of the contracts or arrangements or transaction Re-designation and revision in remuneration payable with effect from 1st April,
including the value, if any 2015 as Sr. Vice President (Welfare Co-ordination)as under:
Salary: Rs. 2 Lakh per month and Rs. 24 Lakh per annum
Perquisites and allowances: Rs. 0.39 Lakhs per annum

Provision of Company maintained car with driver for official use
Terminal Benefits: Rs. 2.88 Lakhs per annum

Company’s contribution to Provident Fund, Gratuity or any other Annuity Fund
in accordance with the Rules of the Company, in force from time to time
e) Justification for entering into such contracts or arrangements Rendering of professional services
or transactions’
f) Date of approval by the Board 23rd February, 2015
g) Amount paid as advances, if any NIL
h) Date on which the special resolution was passed in General Not Applicable
meeting as required under first proviso to section 188
39
No.
a) Name (s) of the related party & nature of relationship Mrs. S G Crishna, spouse of Mr. V M Crishna, Whole-time Director, sister of
Mr. J N Godrej, Chairman and Managing Director and mother of Ms. Nyrika
Holkar, Executive Director-Corporate Affairs
b) Nature of contracts/arrangements/transaction Employment Contract
c) Duration of the contracts/arrangements/transaction Permanent Employee
d) Salient terms of the contracts or arrangements or transaction Re-designation and revision in remuneration payable with effect from 1st April,
including the value, if any 2015 as Sr. Vice President (Welfare Co-ordination)as under:
Salary of Rs. 2 Lakh per month and Rs. 24 Lakh per annum
Perquisites and allowances: Rs. 0.39 Lakhs per annum
Provision of Company maintained car with driver for official use
Terminal Benefits: Rs. 2.88 Lakhs per annum
Company’s contribution to Provident Fund, Gratuity or any other Annuity Fund
in accordance with the Rules of the Company, in force from time to time
e) Justification for entering into such contracts or arrangements Rendering of professional services
or transactions’
f) Date of approval by the Board 23rd February, 2015
g) Amount paid as advances, if any NIL
h) Date on which the special resolution was passed in General Not Applicable
meeting as required under first proviso to section 188
2. Details of material contracts or arrangements or transactions at Arm’s length basis.

No.
a) Name (s) of the related party & nature of relationship N.A.
b) Nature of contracts/arrangements/transaction N.A.
c) Duration of the contracts/arrangements/transaction N.A.
d) Salient terms of the contracts or arrangements or transaction N.A.
including the value, if any
e) Date of approval by the Board N.A.
f) Amount paid as advances, if any N.A.
J. N. Godrej
Chairman and Managing Director
DIN: 00076250
40
INDEPENDENT AUDITOR'S REPORT
To
The Members of
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Godrej & Boyce Manufacturing Company Limited (“the Company”),
which comprise the Balance Sheet as at 31st March, 2019, and the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies
and other explanatory information (hereinafter referred to as “the Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements
give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended (“Ind AS”), and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2019,
and its profit and total comprehensive loss, the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of
the Act (“SAs”). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Standalone
Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone
Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Information Other than the Financial Statements and Auditor’s Report Thereon (“Other Information”)
The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information
included in the Board’s Report and its annexures but does not include the Consolidated Financial Statements, Standalone Financial Statements
and our auditor’s reports thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course
of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these
Standalone Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in
India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions 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 Financial Statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
41
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
 Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
 Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such controls.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
the management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the
Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
42
Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit of the aforesaid Standalone Financial Statements.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the Directors as on 31st March 2019 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company’s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act,
as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements.
ii. The Company has made provision in its Standalone Financial Statements, as required under the applicable law or Ind AS, for material
foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11)
of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells LLP

Firm’s Registration No: 117366W/W-100018
Shyamak R Tata
Partner
Membership No: 038320
UDIN: 19038320AAAAAE6099
Mumbai
20th August, 2019
43
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(“the Act”) of Godrej & Boyce Manufacturing Company Limited
We have audited the internal financial controls over financial reporting of Godrej & Boyce Manufacturing Company Limited (“the Company”) as
of 31st March, 2019 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“the Guidance Note”).
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation
of reliable financial information, as required under the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls. The Guidance Note and those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of Management and Directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
44
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has in all material respects, an
adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating
effectively as of 31st March, 2019, based on the criteria for internal financial control over financial reporting established by the Company
considering the essential components of Internal controls stated in the Guidance Note.

Shyamak R Tata
Partner
Mumbai
20th August, 2019
45
Annexure “B” to Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11) of the
Companies Act, 2013 (“the Act”) of Godrej & Boyce Manufacturing Company Limited
i. In respect of the Company’s property, plant and equipment and investment property:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and
equipment and investment property.
(b) The property, plant and equipment and investment property were physically verified during the year by the Management in accordance
with a regular programme of verification which, in our opinion, provides for physical verification of all property, plant and equipment at
regular intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the
registered sale deed / transfer deed / conveyance deed, court orders approving schemes of arrangements / amalgamations and other
documents provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are
freehold, are held in the name of the Company as at the Balance Sheet date, except for the following:
Gross Block Net block
Particulars Remarks
(Rs. In crore) (Rs. In crore)
One of the land parcels pertaining to a recent
Freehold Land 0.23 0.23 amalgamation is in the process of being
registered.
In respect of immovable properties of land that have been taken on lease and disclosed as property, plant and equipment in the
Standalone Financial Statements, the lease agreements are in the name of the Company.
ii. As explained to us, the inventories other than goods-in-transit, stocks lying with third parties and Construction work-in-progress (which
have substantially been confirmed by third parties / certified by Management) were physically verified during the year by the Management
at reasonable intervals and no material discrepancies were noticed on physical verification.
iii. According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts
and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the Balance Sheet date.
iv. In our opinion and according to information and explanations given to us, the Company has complied with provisions of Section 185 and
186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to
the deposits accepted. According to the information and explanations given to us, no order has been passed by the Company Law Board or
the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
vi. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Act in respect of specified
products of the Company. For such products, we have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014, as amended, and are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether
they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a)The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance,
Income Tax, Goods and Service Tax, Customs Duty, cess and other material statutory dues applicable to it to the appropriate authorities.
We were informed that the provisions of Excise duty is not applicable.

(b)There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax, Goods and Service
Tax, Customs Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2019 for a period of more than six
months from the date they became payable.
46
(c) Details of dues of Entry Tax, Sales Tax, Service Tax, Excise Duty, and Value Added Tax which have not been deposited as at March 31,
2019 on account of disputes are given below:
Forum where Period to which the Amount

Name of Statute Nature of Dues
Dispute is Pending Amount Relates (Rs. in crore)
Appellate Authority –
Various years from 1987
Central Excise Act, 1944 Excise Duty Commissioner / 34.75
to 2018
Tribunal/ High Court
Appellate Authority –
Finance Act, 1994 Service Tax Commissioner / 11.72
to 2018
Tribunal
Appellate /
Central Sales Tax Act, Revisional Authority
1956, and State Sales Sales Tax / VAT – upto 23.91
to 2018
Tax / VAT Acts Commissioner/
Tribunal/ High Court
The West Bengal Tax on
Entry of Goods into Entry tax High Court Upto 31st March, 2019 37.58
Local Areas Act, 2012
There were no dues of Goods and Service Tax which have not been deposited as at March 31, 2019 on account of dispute.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in
repayment of dues to financial institutions, banks, government and debenture holders.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and
according to the information and explanations given to us, the term loans have been applied by the Company during the year for the
purposes for which they were raised, other than temporary deployment pending application of proceeds.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material
fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of
the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in
the standalone financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause 3 (xiv) of the Order is not applicable.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-
cash transactions with its Directors or persons connected with them and hence provisions of section 192 of the Act are not applicable.
xvi. According to information and explanations given to us, the Company is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934.

Shyamak R Tata
Partner
Mumbai
20th August, 2019
47

BALANCE SHEET AS AT 31st MARCH, 2019
(Rupees in crore)
Note As at As at
31-03-2019 31-03-2018
ASSETS
(1) NON-CURRENT ASSETS
(a) Property, Plant and Equipment 2A 2,031.42 1,892.89
(b) Capital Work-in-progress 2A 797.39 533.53
(c) Investment Property 2B 362.54 371.24
(d) Intangible Assets 2A 15.09 19.56
(e) Intangible Assets under development 2A 6.40 3.04
3,212.84 2,820.26
(f) Financial Assets
(i) Investments in Subsidiaries, Associates and Joint Venture 3 101.65 95.04
(ii) Other Non-Current Investments 4 6,087.43 6,475.51
(iii) Loans 5 58.04 69.99
6,247.12 6,640.54
(g) Deferred Tax Assets (Net) 17B - 37.44
(h) Other Non-Current Assets 6 53.85 56.93
9,513.81 9,555.17
(2) CURRENT ASSETS
(a) Inventories 7 2,378.95 2,334.42
(b) Financial Assets
(i) Trade Receivables 8 2,248.21 2,352.95
(ii) Cash and Cash Equivalents 9(A) 250.53 288.42
(iii) Bank Balances other than (ii) above 9(B) 123.79 122.79
(iv) Other Financial Assets 10 55.67 382.05
2,678.20 3,146.21
(c) Current Tax Assets (net) 48.58 -
(d) Other Current Assets 11 958.34 514.14
6,064.07 5,994.77
Total Assets 15,577.88 15,549.94
EQUITY AND LIABILITIES

(1) EQUITY
(a) Equity Share Capital 12 6.78 6.78
(b) Other Equity 13 9,199.69 9,385.51
9,206.47 9,392.29
LIABILITIES
(2) NON-CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 14 798.54 794.19
(ii) Other Financial Liabilities 15 182.72 186.25
981.26 980.44
(b) Provisions 16 84.54 79.42
(c) Deferred Tax Liabilities (Net) 17 1.50 -
(d) Other Non-Current Liabilities 18 15.05 15.84
1,082.35 1,075.70
(3) CURRENT LIABILITIES
(i) Borrowings 19 1,713.32 1,429.72
(ii) Trade Payables 20 1,539.28 1,536.89
(iii) Other Financial Liabilities 21 1,060.79 1,149.45
4,313.39 4,116.06
(b) Current Tax Liabilities (net) - 12.52
(c) Other Current Liabilities 22 938.43 914.63
(d) Provisions 23 37.24 38.74
5,289.06 5,081.95
Total Equity and Liabilities 15,577.88 15,549.94
Statement of Significant Accounting Policies and
Notes forming part of the Financial Statements 1-49
As per our Report of even date

For DELOITTE HASKINS & SELLS LLP For and on behalf of the Board of Directors
CHARTERED ACCOUNTANTS
Firm Registration No.: 117366W/W-100018
SHYAMAK R TATA J. N. GODREJ A. G. VERMA P. K. GANDHI P. E. FOUZDAR

PARTNER Chairman & Executive Director Chief Financial Executive Vice President
Membership No.: 038320 Managing Director & President Officer (Corporate Affairs)
Mumbai, 20th August, 2019 DIN: 00076250 DIN: 02366334 & Company Secretary
48

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2019
(Rupees in crore)
Note
I. REVENUE FROM OPERATIONS 25 11,051.55 9,796.76

II. OTHER INCOME 26 115.64 107.40
TOTAL INCOME 11,167.19 9,904.16
III. EXPENSES
(1) Cost of Materials consumed 27 2,528.64 2,650.06
(2) Excise duty - 161.35
(3) Purchases of Stock-in-Trade 28 3,482.76 2,585.87
(4) Changes in Inventories of Finished Goods, Work-in-Process
and Stock-in-Trade 29 17.53 (63.77)
(5) Property Development and Construction Expenses 30 1,040.38 854.07
(6) Employee Benefits Expense 31 1,170.71 1,097.17
(7) Finance Costs 32 168.00 180.42
(8) Depreciation and Amortization Expense 2 215.61 201.43
(9) Other Expenses 33 2,190.92 1,866.50
(10) Less: Expenditure transferred to Capital Accounts (3.24) (21.68)
TOTAL EXPENSES 10,811.31 9,511.42
IV. PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 355.88 392.74
V. EXCEPTIONAL ITEMS 34 - (35.88)
VI. PROFIT BEFORE TAX 355.88 356.86
VII. TAX EXPENSES

(1) Current tax 17 105.00 149.53
(2) Prior years' current tax adjustments 17 15.44 (4.62)
(3) Deferred tax (credit) / charge 17 (1.82) (20.06)
(4) Prior years' deferred tax adjustments 17 8.00 -
126.62 124.85
VIII. PROFIT / (LOSS) AFTER TAX FOR THE YEAR 229.26 232.01
IX. OTHER COMPREHENSIVE INCOME (OCI)

Items that will not be reclassified to Statement of Profit and Loss
(i) Remeasurement of defined employee benefit plans 4.66 (5.97)
(ii) Change in Fair Value of Equity Instruments through OCI (252.91) 1,650.12
(iii) Deferred tax charge/(credit) on above (1.63) 2.07
(249.88) 1,646.22
Items that will be reclassified to Statement of Profit and Loss
(i) Change in Fair Value of Other Instruments through OCI 1.87 (1.87)
TOTAL OTHER COMPREHENSIVE INCOME (248.01) 1,644.35
X. TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR (18.75) 1,876.36
XI. EARNINGS PER EQUITY SHARE
Basic and Diluted Earnings per Equity Share of Rs. 100 each 40 Rs. 3,379 Rs. 3,420
XII. Statement of Significant Accounting Policies and

Notes forming part of the Financial Statements 1-49


49

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2019
(Rupees in crore)
(A) Equity Share Capital Note For the year ended For the year ended
31/03/2019 31/03/2018
Balance at the beginning of the year 6.78 6.78
Changes in equity share capital during the year - -
Balance at the end of the year 12 6.78 6.78
(B) Other Equity

Items of Other Comprehensive
Reserves & Surplus Income (OCI)
Particulars Note Capital Securities Capital General Debenture Retained Not Reclassified Reclassified Total Other
Reserve Premium Reserve on Reserve Redemption Earnings to Profit or Loss to Profit or Equity
Business Reserve Loss
Combinations
Balance as at 31/03/2017 - Restated 72.70 20.08 (19.76) 645.85 20.83 2,567.01 4,386.36 - 7,693.07
Adjustment pursuant to business combination [Note 17(a)(iii))] - - (0.19) - - - - - (0.19)
Profit / (Loss) after tax for the year - - - - - 232.01 - - 232.01
Remeasurement of defined employee benefit plans - - - - - - (5.97) - (5.97)
Fair valuation of investments in equity instruments - - - - - - 1,650.12 (1.87) 1,648.25
Deferred tax credit on items of OCI - - - - - - 2.07 - 2.07
Total comprehensive income for the year 2017-18 72.70 20.08 (19.95) 645.85 20.83 2,799.02 6,032.58 (1.87) 9,569.24
First Interim Equity Dividend declared and paid during the year - - - - - (101.77) - - (101.77)
Second Interim Equity Dividend declared and paid during the year - - - - - (50.88) - - (50.88)
Dividend Distribution Tax (DDT) on Interim Dividend - - - - - (31.08) - - (31.08)
Transfer to Debenture Redemption Reserve - - - - 45.84 (45.84) - - -
Realised gain on sale of equity shares reclassified to retained earnings - - - - - 311.05 (311.05) - -
Balance as at 31/03/2018 13 72.70 20.08 (19.95) 645.85 66.67 2,880.50 5,721.53 (1.87) 9,385.51
Profit / (Loss) after tax for the year - - - - - 229.26 - - 229.26
Remeasurement of defined employee benefit plans - - - - - - 4.66 - 4.66
Fair valuation of investments in equity instruments - - - - - - (252.91) 1.87 (251.04)
Deferred tax credit on items of OCI - - - - - - (1.63) - (1.63)
Total comprehensive income for the year 2018-19 - - - - - 229.26 (249.88) 1.87 (18.75)
Adjustments to Opening Retained Earnings Ind AS 115 (3.49) (3.49)
First Interim Equity Dividend declared and paid during the year - - - - - (67.84) - - (67.84)
Second Interim Equity Dividend declared and paid during the year - - - - - (67.85) - - (67.85)
Dividend Distribution Tax (DDT) on Interim Dividend - - - - - (27.89) - - (27.89)
Transfer to Debenture Redemption Reserve - - - - 8.33 (8.33) - - -
Reclassification of excess amount transferred in earlier years (196.12) 196.12 -
Realised gain on sale of equity shares reclassified to retained earnings - - - - - 54.25 (54.25) - -
Balance as at 31/03/2019 13 72.70 20.08 (19.95) 645.85 75.00 2,792.49 5,613.52 - 9,199.69
Notes forming part of the financial statements 1 - 49
As per our Report of even date For and on behalf of the Board of Directors
For DELOITTE HASKINS & SELLS LLP

50

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st MARCH, 2019
(Rupees in crore)
A. CASH FLOWS FROM OPERATING ACTIVITIES

PROFIT BEFORE TAX 355.88 356.86
ADJUSTMENTS TO RECONCILE PROFIT BEFORE TAX TO NET CASH USED IN:
Depreciation and Amortisation Expense 215.61 201.43
Provisions for Doubtful Debts/Advances/Deposits 14.43 26.37
Bad Debts written off (net) 12.12 61.95
Diminution in the Value of Investment in a Subsidiary - 38.54
Profit on Sale of Investments (Net): Current (1.63) (10.84)
(Profit)/Loss on Sale of Property, Plant and Equipment (Net): Immovable Property 0.57 (9.19)
Unrealised Foreign Currency Loss / (Gain) (10.58) 1.06
Interest Income (20.90) (16.79)
Dividend Income (92.76) (56.60)
Finance Costs 168.00 180.42
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 640.74 773.21
MOVEMENT IN CURRENT ASSETS AND LIABILITIES:
Inventories (44.53) (207.19)
Trade and other Receivables (13.03) (309.59)
Trade and other Payables and Provisions 52.01 249.02
CASH GENERATED FROM/(USED IN) OPERATIONS 635.19 505.45
Direct Taxes paid (150.41) (63.37)
NET CASH FROM/(USED IN) OPERATING ACTIVITIES 484.78 442.08
B. CASH FLOWS FROM INVESTING ACTIVITIES
Property, Plant and Equipment acquired (557.34) (445.75)
Sale of Property, Plant and Equipment 2.14 15.04
Purchase of Investment in Subsidiaries and Associates (6.26) (5.44)
Sale of Other Investments and Current Investments 138.68 430.08
Loan to associate (13.21) -
Net decrease /(increase) in bank deposits (having original maturities of more than 3 months) (1.00) (41.88)
Proceeds (residual bank balance) received from a wholly-owned subsidiary on its liquidation - -
Interest received 20.90 16.79
Dividend received 92.76 56.60
NET CASH FROM/(USED IN) INVESTING ACTIVITIES (323.33) 25.44
C. CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in short-term Bank Borrowings (368.62) (36.42)
Other Borrowings: Loans and Deposits taken 3,460.28 2,885.37
Loans and Deposits repaid (2,800.21) (2,932.54)
Redemption of Debentures (100.00) -
Finance Cost (227.22) (199.96)
Dividend paid, including Dividend Distribution Tax (163.58) (183.73)
NET CASH FROM/(USED) IN FINANCING ACTIVITIES (199.35) (467.28)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (37.90) 0.24
Cash and Cash Equivalents at the beginning of the year 288.43 288.19
Cash and Cash Equivalents at the end of the year 250.53 288.43
Add: Other Bank Balances (not considered as cash and cash equivalents):
Fixed Deposits with Banks 104.90 98.50
Other Earmarked Accounts 18.89 24.29
CLOSING CASH AND BANK BALANCES (NOTE 9) 374.32 411.22
D. COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

Cash in hand 1.27 1.40
Cheques on Hand 207.66 236.41
Balances with Banks in Current Accounts 41.60 50.61
Notes forming part of the financial statements 1 - 49
51
NOTES:
1. The Statement of Cash Flows has been prepared under the "Indirect Method" as set out in the Indian Accounting Standard (Ind AS-7)
on "Statement of Cash Flows," and presents cash flows by operating, investing and financing activities.
2. Figures in brackets are outflows/deductions.
3. Cash and cash equivalents for the purposes of this Statement comprise of cash in hand, cheques on hand cash at bank and fixed
deposits with maturity of three months or less.


52
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A. General Information
Godrej & Boyce Manufacturing Company Limited ('the Company') incorporated on 3rd March, 1932 is a major company of the Godrej
Group. The Company has diverse business divisions offering a wide range of consumer, office, and industrial products and related
services of the highest quality to customers in India and abroad. The Company is domiciled in India and its registered office is at,
Pirojshanagar, Vikhroli, Mumbai 400 079.
B. Basis of preparation of financial statements

These financial statements as at, and for the year ended, 31st March, 2019 have been prepared in accordance with Indian Accounting
standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013, ('the Act') read together with the Companies (Indian
Accounting Standards) Rules, 2015 (as amended).
The financial statements have been prepared and presented under the historical cost convention, on accrual and going concern basis
except for certain financial assets and financial liablities that are measured at fair values at the end of each reporting period, as
explained in the accounting policies below.
The financial statements of the Company for the year ended 31st March, 2019 were approved for issue in accordance with the
Resolution passed by the Board of Directors at their meeting held on 20th August, 2019.
C. Functional and presentation currency

These financial statements are presented in Indian rupees, which is the Company’s functional currency. All amounts have been
rounded to the nearest crore, unless otherwise indicated; a crore is equal to ten million. Where changes in presentation are made,
comparitive figures for the previous year are restated /regrouped accordingly.
D. Uses of Estimates and Judgements

The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which
might have an effect on their recognition and measurement in the Balance Sheet and Statement of Profit and Loss. The actual amounts
realised may differ from these estimates.
Estimates and assumptions are required in particular for:
(i) Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may be
capitalised
Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful
lives are different from those prescribed in Schedule II, they are based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers’ warranties and maintenance support. Assumptions also need to be made, when the
Company assesses, whether an asset may be capitalised and which components of the cost of the asset may be capitalised.
(ii) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, trends in salary escalation, vested future benefits and life expectancy. The discount rate is determined by
reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying
bonds correspond to the probable maturity of the post-employment benefit obligations. The same is disclosed in Note 42.
(iii) Income Taxes

The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of
paying advance tax, determining the provision for income taxes, including amount expected to be paid / recovered for uncertain
tax positions.
A deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable profit
will be available against which the deductible temporary difference can be utilised. The management assumes that taxable profits
will be available while recognising deferred tax assets.
(iv) Recognition and measurement of provisions
The recognition and measurement of provisions are based on the assessment of the probability of an outflow of resources, and on
past experience and circumstances known at the Balance Sheet date. The actual outflow of resources at a future date may
therefore vary from the figure included in other provisions.
53
(v) Determining whether an arrangement contains a lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At inception or on
reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by the
arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Company
concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognised
at an amount equal to the fair value of the underlying asset; subsequently, the liability is reduced as payments are made and an
imputed finance cost on the liability is recognised using the Company ’s incremental borrowing rate and in case of operating lease,
all payments under the arrangement are treated as lease payments.
(vi) Rebates and sales incentives
Rebates are generally provided to distributors or customers as an incentive to sell the Company’s products. Rebates are based on
purchases made during the period by distributor / customer. The Company determines the estimates of rebate accruals primarily
based on the contracts entered into with their distributors / customers and the information received for sales made by them.
(vii) Fair value of financial instruments

Derivatives are carried at fair value. Derivatives includes Foreign Currency Forward Contracts and Interest Rate Swaps. Fair value of
Foreign Currency Forward Contracts are determined using the fair value reports provided by the respective merchant bankers. Fair
value of Interest Rate Swaps are determined with respect to current market rate of interest.
(viii) Impairment of Financial Assets
The Company reviews its carrying value of investments in subsidiaries and associates on an annual basis or more frequently when
there is an indication of other than temporary impairment in the carrying value of its investments. The recoverable amount is
measured using future cash flows projections provided by the management. A significant degree of judgment is required in
establishing these recoverable values. Judgments include considerations such as change in business strategy, liquidity risk, credit
risk and volatility which provide objective evidence of an impairment which is other than temporary in the long term inherent
value of the investment.
(ix) Assurance Product Warranty Obligations
The estimates for assurance product warranty obligations are established using historical information on the nature, frequency
and average cost of warranty claims and management estimates regarding possible future incidences.
(x) Expected Cost of Completion of Contracts
For the purpose of arriving at Revenue from construction contracts, the Company’s Management estimates the cost to completion
for each project. Management systematically reviews future projected costs and compares the aggregate of costs incurred to date
and future costs projections against budgets, on the basis of which, proportionate revenue (or anticipated losses), if any, are
recognised.
E. Standards issued but not effective
On 30th March, 2019, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules,
2019, notifying Ind As 116 on Leases. Ind AS 116 would replace the existing lease standard Ind AS 17. The standard sets out the
principles for the recognition, measurement, presentation and disclosures for both parties to a contract, i.e. the lessee and the
lessor. Ind AS 116 introduces a single lease accounting model and required a lessee to recognise assets and liabilities for all leases
with a term of more than 12 months, unless the underlying assets is of low value. Currently for operating lease rentals are charged
to the Statement of Profit and Loss. The Company is currently evaluating the implications of Ind AS 116 on the financial
statements.
The Companies (Indian Accounting Standards) Amendment Rules, 2019 also notified amendments to the following accounting
standards. The amendments would be effective from 1st April, 2019.
1. Ind AS 12 - Income taxes - Appendix C on uncertainty over income tax treatments
2. Ind AS 12 - Income taxes - Accounting for Dividend Distribution Taxes
3. Ind AS 23 - Borrowing Costs
4. Ind AS 28 - Investments in associates and joint ventures
5. Ind AS 103 and Ind AS 111 - Business Combinations and joint arrangements
6. Ind AS 109 - Financial Instruments
7. Ind AS 19 - Employee benefits
The Company is in the process of evaluating the impact of such amendments.
F. Measurement of fair values
The Company ’s accounting policies and disclosures require the measurement of fair values for financial instruments.
The Company has an established control framework with respect to the measurement of fair values. The management regularly
reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing
services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support
the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such
valuations should be classified.
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When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
Level 1 : inputs are 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).
Level 3 : inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair values are
determined in whole or part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the
change has occurred.
G. Significant accounting policies

i. Property, plant and equipment
a. Recognition and measurement
Property, plant and equipment is recognised when it is probable that future economic benefit associated with the asset will flow to
the Company, and the cost of the asset can be measured reliably.
Items of property, plant and equipment are measured at original cost less accumulated depreciation and any accumulated
impairment losses.
The cost of an item of property, plant and equipment comprises:
a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by management.
Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary
for it to be capable of operating in the manner intended by management, are recognised in the Statement of Profit and Loss.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate
items (major components) of property, plant and equipment, and depreciated over their respective useful lives.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in the Statement of Profit and Loss.
All property, plant and equipment received in exchange for non-monetary assets are measured at fair value unless the exchange
transaction lacks commercial substance or the fair value of neither the asset received nor the asset given up is reliably measurable.
Measurement of an exchange at fair value will result in the recognition of a gain or loss based on the carrying amount of the asset
surrendered. If a fair value can be determined reliably for either the asset received or the asset given up, then the fair value of the
asset given up should be used unless the fair value of the asset received is more clearly evident. Accordingly, Transferable
Development Rights (TDR’s) obtained by the Company in respect of its freehold lands situated at Mumbai, are carried at fair value
of land given up unless the fair value of TDR received is more clearly evident, and are shown under Freehold Land. Any gain or loss
arising from such exchange is immediately recognised in profit or loss.
Any transfer of such TDR’s / land from fixed asset to inventory is done at cost.
b. Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will
flow to the Company.
c. Depreciation / Amortisation
The Company has followed the Straight Line method for charging depreciation on all items of property, plant and equipment, at
the rates specified in Schedule II to the Act; these rates are considered as the minimum rates. If management's estimate of the
useful life of the property, plant and equipment is shorter than that envisaged in Schedule II, depreciation is provided at a higher
rate based on management’s estimate of the useful life. Accordingly, in respect of the commercial construction projects, on some
items of equipment at the project sites, depreciation is provided at a higher rate based on useful life of the assets estimated at 5
years, compared to 15 years specified in Schedule II.
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Moreover, in respect of special-purpose machinery used in the contract-manufacturing of precision components and systems,
depreciation is charged over the period of such manufacturing contracts. In respect of additions to/deductions from the assets,
the depreciation on such assets is calculated on a pro rata basis from/upto the month of such addition/deduction. Assets costing
less than Rs. 5,000 are fully depreciated in the year of purchase/acquisition. Leasehold Land and Buildings are amortised over the
period of the lease. The cost of property, plant and equipment not ready for their intended use at the balance sheet date is
disclosed under capital work-in-progress.
Intangible assets comprising of Technical Know-how and Trade Marks are amortised on straight-line basis at the rate of 16.67%;
capitalised Computer Software costs relating to the ERP system, are amortised on straight line basis at the rate of 20%.
ii. Investment properties

a. Properties held to earn rentals and / or capital appreciation (including property under construction for such purposes) are
classified as investment properties.
b. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
c. The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria
are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives. All other repair and maintenance costs are recognised in the Statement of
Profit and Loss as incurred.
d. The Company follows the straight line method for charging depreciation on investment property over estimated useful lives
prescribed in Schedule II to the Companies Act, 2013.
e. Though the Company measures investment property using cost based measurement, the fair value of investment property is
disclosed in the notes.
f. Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from
use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the
carrying amount of the asset is recognised in the Statement of Profit and Loss in the period of derecognition.
iii. Intangible assets
Intangible assets, including patents and trademarks, which are acquired by the Company and have finite useful lives are measured
at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which
it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in the Statement
of Profit and Loss as incurred.
c. Amortisation
Intangible assets are amortised over their estimated useful life on straight line method.
iv. Investment in Subsidiaries, Joint Ventures and Associates
Non-current investments in subsidiaries, associates and joint ventures are stated at cost (unless otherwise stated); however, for
any diminution other than temporary in the value of investments, the book value is reduced to recognise the decline. In cases
where these investments are carried at their book values, which are higher than their fair values, the diminution in the value of
such investments is considered to be of a temporary nature, in view of the Company's long-term financial involvement in such
investee companies.
v. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
A. Financial Assets
(a) Initial recognition and measurements:
The Company recognises a financial asset in its balance sheet when it becomes party to the contractual provisions of the
instrument. All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of the financial asset at initial recognition is different from its transaction price, the difference between the
fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair
value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a
valuation technique that uses data from observable markets (i.e. level 2 input).
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In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value
and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only to the
extent that such gain or loss arises due to change in factor that market participants take into account when pricing the financial
asset.
However, trade receivables that do not contain a significant financing component are measured at transaction price.
(b) Subsequent measurement:
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria;
(i) The Company’s business model for managing the financial asset and
(ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
(i) Financial assets measured at amortised cost
(ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)
(iii) Financial assets measured at fair value through profit or loss (FVTPL)
(i) Financial asset measured at amortised cost:
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The Company’s business model objective for managing the financial asset is to hold financial assets in order to collect
contractual cash flows, and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principle amount outstanding.
This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company (Refer Note 43
for further details). Such financial assets are subsequently measured at amortised cost using the effective interest method.
Under the effective interest rate method, the future cash receipts are exactly discounted to the initial recognition value using the
effective interest rate. The cumulative amortisation using the effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the initial recognition value (net of principal/repayments, if any) of the
financial asset over the relevant period of the financial asset to arrive at the amortised cost at each reporting date. The
corresponding effect of the amortisation under effective interest method is recognised as interest income over the relevant period
of the financial asset. The same is included under other income in the Statement of Profit and Loss.
The amortised cost of financial asset is also adjusted for loss of allowance, if any.
(ii) Financial asset measured at FVTOCI:
A financial asset is measured at FVTOCI if both of the following conditions are met:
a) The Company’s business model objective for managing the financial asset is achieved both by collecting contractual cash flows
and selling the financial asset, and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and
interest on the principal amount outstanding.
This category applies to certain investments in debt instruments (Refer Note 3 for further details). Such financial assets are
subsequently measured at fair value at each reporting date. Fair value changes are recognised in the other Comprehensive
Income (OCI). However, the Company recognises interest income and impairment losses and its reversals in the Statement of
Profit and Loss.
On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified from equity to the
Statement of Profit and Loss.
Further, the Company, through an irrevocable election at initial recognition, has measured certain investments in equity
instruments at FVTOCI (Refer Note 43 for further details). The Company has made such election on an instrument by instrument
basis. These equity instruments are neither held for trading nor are contingent consideration recognised under a business
combination. Pursuant to such irrevocable election, subsequent changes in the fair value of such equity instruments are
recognised in OCI. However, the Company recognises dividend income from such instruments in the Statement of Profit and Loss.
On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not reclassified from the equity to
the Statement of Profit and Loss. However, the Company may transfer such cumulative gain or loss into retained earnings within
equity.
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(iii) Financial asset measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This is a residual
category applied to all other investments of the Company excluding investments in subsidiary and associate companies (Refer
Note 43 for further details). Such financial assets are subsequently measured at fair value at each reporting date. Fair value
changes are recognised in the Statement of Profit and Loss.
(c ) Derecognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised (i.e.
removed from the Company’s balance sheet) when any of the following occurs:
(i) The contractual rights to cash flows from the financial asset expires;
(ii) The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the
risks and rewards of ownership of the financial asset.
(iii) The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows
without material delay to one or more recipients under a ‘pass-through’ arrangement (thereby substantially transferring all the
risks and rewards of ownership of the financial asset);
(iv) The Company neither transfers nor retains substantially all risk and rewards of ownerships and does not retain control over
the financial assets.
In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but
retains control of the financial asset, the Company continues to recognise such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company also recognises an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
On Derecognition of a financial asset, (except as mentioned in (ii) above for financial assets measured at FVTOCI), the difference
between the carrying amount and the consideration received is recognised in the Statement of Profit and Loss.
(d) Impairment of financial assets:
The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:
i. Trade receivables, Contract assets and lease receivables.
ii. Financial assets measured at amortised cost (other than trade receivables, contract assets and lease receivables)
iii. Financial assets measured at fair value through other comprehensive income (FVTOCI)
In case of trade receivables, contract assets and lease receivables, the Company follows a simplified approach wherein an amount
equal to lifetime ECL is measured and recognised as loss allowance.
In case of other assets (listed as (ii) and (iii) above), the Company determines if there has been a significant increase in credit risk
of the financial assets since initial recognition, if the credit risk of such assets has not increased significantly, an amount equal to 12-
month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to
lifetime ECL is measured as recognised as loss allowance.
Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk
since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the
cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset,
12month ECL, are a portion of the lifetime ECL which result from default events that are possible within 12 months from the
reporting date.
ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcome,
taking into account the time value of money and other reasonable information available as a result of past events, current
conditions and forecasts of future economic conditions.
As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and contract
assets and is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in
the forward-looking estimates are updated.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the Statement of
Profit and Loss under the head 'Other expenses’.
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B. Financial Liabilities
(a) Initial recognition and measurement:
The Company recognises a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the
instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair
value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.
Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the
fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair
value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through
valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value
and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only to the
extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial
liability.
All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method (Refer
Note 43 for further details).
Under the effective interest method, the future cash payments are exactly discounted to the initial recognition value using the
effective interest rate. The cumulative amortisation using the effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the
financial liability over the relevant period of the financial liability to arrive at the amortised cost at each reporting date. The
corresponding effect of the amortization under effective interest method is recognised as interest expense over the relevant
period of the financial liability. The same is included under finance cost in the Statement of Profit and Loss.
(c ) Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When the existing
financial liability is replaced by another from the same lender or substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the Derecognition of the original liability and the
recognition of a new liability. The difference between the carrying amount of the financial liability derecognised and the
consideration paid is recognised in the Statement of Profit and Loss.
C. Derivative financial instruments
The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks . Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
vi. Inventories
Trade Inventories:
Raw Materials, Loose Tools, Stores, Spares, etc. are valued at lower of weighted average cost and estimated net realisable value.
Estimated Net realisable value of raw materials is determined on the basis of the price of the finished products in which they will
be used are expected to be sold.
Work-in-Process (other than Construction Projects) is valued at lower of estimated cost (consisting of direct material and direct
labour costs plus appropriate factory overheads) and estimated net realisable value.
Finished Goods, goods in transit and goods with third parties are valued at lower of weighted average cost and estimated net
realisable value; cost includes purchase, conversion, appropriate factory overheads, any taxes or duties and other costs incurred
for bringing the inventories to their present location and condition. Spares and Components for after-sales service are valued at
lower of average cost and estimated net realisable value on an item-by-item basis.
Obsolete and damaged inventories, and other anticipated losses are adequately provided for, wherever considered necessary.
Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and selling
expenses.
Construction Projects:
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In respect of the commercial construction projects promoted / developed on the company’s land, construction work-in-progress is
valued at estimated cost consisting of the cost of land (forming part of the project), development, construction and other related
costs. Construction Work in progress includes projects for Industrial Products / Equipment.
Work in process is valued at lower of specifically identified costs or net realisable value.
vii. Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash as cash
and cash equivalents. Cash and cash equivalents in the Balance Sheet comprises of cash on hand, bank balances which are
unrestricted for withdrawal and usage and short-term deposits with an original maturity of three months or less, which are subject
to an insignificant risk of changes in value.
viii. Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of an asset that necessarily takes a substantial
period of time to get ready for its intended use are capitalised as part of the cost of that asset till the date it is ready for its
intended use or sale. Other borrowing costs are recognised as an expense in the period in which they are incurred.
ix. Provisions and Contingent Liabilities and Contingent Assets

A provision is recognised only when there is a present legal / constructive obligation as a result of a past event that probably
requires an outflow of resources to settle the obligation and in respect of which a reliable estimate can be made. Provision is not
discounted to its present value and is determined based on the best estimate required to settle the obligation at the balance sheet
date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions and Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date. Contingent Assets and
related income are recognised when there is virtual certainty that inflow of economic benefit will arise.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract
and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any
impairment loss on the assets associated with that contract.
x. Revenue Recognition
Effective 1st April, 2018, the Company has applied Ind AS 115 'Revenue from Contracts with Customers' which establishes a
comprehensive framework for determining whether, how much and when revenue is to be recognised. The Company elected to
transition using the modified retrospective method and has taken the cumulative effect of initially applying the standard as an
adjustment to the opening balance sheet as at 1st April, 2018 on the contracts that are not completed as at that date.
Performance obligation and transaction price (Fixed and variable)
At inception of the contract, the Company assesses the goods or services promised in a contract with a customer and identifies
each promise to transfer to the customer as a performance obligation which is either:
(a) a goods or services (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the
customer.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price allocated to that
performance obligation. The transaction price of sale of products and services rendered is net of variable consideration on account
of various discounts and schemes offered by the Company as part of the contract. This variable consideration is estimated based
on the expected value of the outflow. Revenue is recognised only to the extent that it is highly probable that the amount will not
be subject to significant reversal when uncertainty relating to its recognition is resolved.
(a) Sale of products
The Company recognises revenue on the sale of products, net of discounts, sales incentives and rebates granted when control
of the goods is transferred to the customer. The performance obligation in case of sale of products is satisfied at a point of
time i.e. when the goods are shipped to the customer or on delivery to the customer, as may be specified in the contract.
Control is considered to be transferred to customer when customer has ability to direct the use of such goods, obtain
substantially all the benefits and bears all risks in respect of such goods.
Accumulated experience is used to estimate and accrue for the discounts and returns considering the terms of the underlying
schemes and agreements with the customers. No element of financing is deemed present as the sales are made with normal
credit days consistent with market practice. A liability is recognised where payments are received from the customers before
transferring control of the goods being sold.
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(b) Lease Rentals

The Company has determined that the payments to the lessor are structured to increase in line with expected general inflation
to compensate for the lessor’s expected inflationary cost increases. Accordingly rental income arising from operating leases on
investment properties is accounted for on an accrual basis as per the terms of the lease contract and is included in Revenue
from Operations in the Statement of Profit and Loss due to its operating nature.
(c) Revenue from construction contracts for industrial products / equipments
Industrial products / equipments are constructed based on specifically negotiated contracts with customers. Contract revenue
includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments, to the
extent that it is probable that they will result in revenue and can be measured reliably.
If the outcome of such contracts can be estimated reliably, then contract revenue is recognised in the Statement of Profit and
Loss in proportion to the stage of completion. The stage of completion is based on percentage of actual cost incurred upto the
reporting date to the total estimated cost of the contract. Otherwise, contract revenue is recognised only to the extent of
contract costs incurred that are likely to be recoverable.
In the case of certain industrial products, the stage of completion is based on either survey of the work performed or
completion of a physical proportion of contract work.
An expected loss on a contract is recognised immediately in the Statement of Profit and Loss.
(d) Revenue from rendering of services
Revenue from service transactions is recognised as per agreements / arrangements with the customer when the related
services are rendered / provided. If the services under a single arrangement are rendered in different reporting periods, then
the consideration is allocated on a time proportion basis. Each distinct service, results in a simultaneous benefit to the
corresponding customer and the Company has an enforceable right to payment from the customer for the performance
completed to date.
(e) Revenue from Real Estate Transaction
The Company develops and sells residential properties. The Company enters into arrangements with customers for sale of
units of such residential properties. These arrangements generally meet the criteria for considering the sale of units as distinct
performance obligation. The Company recognises revenue when its performance obligations are satisfied and customer
obtains control of the asset. For allocating the transaction price, the Company has measured the revenue in respect of each
performance obligation of a contract at its relative standalone selling price. The transaction price is also adjusted for the
effects of the time value of money if the contract includes a significant financing component. Any consideration payable to the
customer is adjusted to the transaction price, unless it is a payment for a distinct product or service.
Income from operation of commercial complexes is recognised over the tenure of the lease / service agreement.
Revenues in excess of invoicing are classified as contract assets while invoicing in excess of revenues are classified as contract
liabilities. Contract assets are classified as non-financial assets.
On account of adoption of Ind AS 115, opening reserves as on 1st April, 2018 is adjusted for impact on revenue recognition in
earlier years with corresponding effect to contract assets and inventories.
xi. Employee benefits
a. Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided. The Company’s
contributions paid/payable to Managerial Superannuation Fund, Employees’ State Insurance Scheme, Employees’ Pension
Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes, and are recognised as
expense in the Statement of Profit and Loss during the period in which the employee renders the related service. There are no
further obligations other than the contributions payable to the approved trusts/appropriate authorities.
b. Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting
the fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit
method.
Short-term employee benefits (payable within twelve months of rendering the service)
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for an amount expected
to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
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Re-measurement of net defined benefit liability

Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. Net
interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the
net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any
changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to
defined benefit plans are recognised in the Statement of Profit and Loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service
or the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Company recognises gains
and losses on the settlement of a defined benefit plan when the settlement occurs.
Further, the Rules of the Company's Provident Fund (PF) administered by an approved Trust, require that if the Board of
Trustees is unable to pay interest at the rate declared for the Employees’ Provident Fund by the Government under para 60 of
the Employees’ Provident Fund Scheme, 1952, for the reason that the return on investment is less or for any other reason,
then the deficiency shall be made good by the Company.
Other long-term employee benefits
The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Re-
measurement are recognised in the Statement of Profit and Loss in the period in which they arise. Other employee benefits
include leave encashment/long-term compensated absences schemes.
xii. Other Operating Revenue

Other Operating Revenue represents income earned from the activities incidental to business and is recognised when the right to
receive is established as per the terms of the contract.
xiii. Finance costs

Finance costs are recorded using the effective interest rate method.
xiv. Other Income

The Company’s other income includes Interest and Dividend income.
Interest income is recognised using the effective interest rate method. Dividend income is recognised in the Statement of Profit
and Loss on the date on which the Company’s right to receive is established.
xv. Foreign currency transactions

Income and expenses in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the
reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the
functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally
recognised in the Statement of Profit and Loss. Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency, are reported using the exchange rate at the date of the transaction.
xvi. Income Taxes

Income tax expense comprises current tax expense and the net change in deferred taxes recognised in the Statement of Profit and
Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
a. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to
the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at
the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if, the Company:
(i) has a legally enforceable right to set off the recognised amounts; and
(ii) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
b. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
(i) temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss; and
62
(ii) temporary differences related to investments in subsidiaries and associates to the extent that the Company is able to
control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable
future;
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if:
a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the
same taxable entity.
Deferred tax asset / liabilities in respect of temporary differences which originate and reverse during the tax holiday period are not
recognised. Deferred tax assets / liabilities in respect of temporary differences that originate during the tax holiday period but
reverse after the tax holiday period are recognised. Deferred tax assets on unabsorbed tax losses and tax depreciation are
recognised only to the extent that there is virtual certainty supported by convincing evidence of their realisation and on other
items when there is reasonable certainty of realisation. The tax effect is calculated on the accumulated timing differences at the
year-end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.
Minimum Alternate Tax (MAT) Credit Entitlement is recognised as a Deferred Tax Asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period in which such credit can be carried
forward for set-off within the time frame prescribed by the Income Tax Act, 1961. The carrying amount of MAT Credit Entitlement
is reviewed at each Balance Sheet date.
xvii. Leases (where the Company is the lessor)

The Company's assets subject to operating leases in its Estate Leasing Operations are included in Investment Property. Lease
income is recognised and included in Revenue from Operations in the Statement of Profit and Loss on a straight-line basis over the
lease term. Costs, including depreciation, are recognised as an expense in the Statement of Profit and Loss. Initial direct costs such
as legal costs, brokerage costs, etc. are recognised immediately in the Statement of Profit and Loss.
xviii.Leases (where the Company is the lessee)
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are
recognised as operating lease. In respect of assets taken on operating lease, lease rentals are recognised as an expense in the
Statement of Profit and Loss on straight line basis over the lease term unless;
(a) another systematic basis is more representative of the time pattern in which the benefit is derived from the leased asset; or
(b) the payments to the lessor are structured to increase in the line with the expected general inflation to compensate for the
lessor's expected inflationary cost increases.
xix. Product warranty expense under service warranty obligation
In respect of products sold by the Company, which carry a specified warranty, future costs that will be incurred by the Company in
carrying out its contractual warranty obligations are estimated and accounted for on accrual basis.
xx. Research And Development Expenses
Research and product development costs incurred are recognised as intangible assets when feasibility has been established and it
is probable that the asset will generate probable future economic benefits. Other research costs are charged to the Statement of
Profit and Loss under the respective natural head of expense.
63
xxi. Earnings per share

Basic and diluted earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity
shares outstanding during the year.
xxii. Segment Reporting
Operating Segments are defined as components of the Company for which discrete financial information is available and are
reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is
responsible for allocating resources and assessing performance of the operating segments of the Company. The Company's CODM
is the Managing Director and President.
xxiii.Business Combinations of entities under common control
Business combinations involving entities under common control are accounted for using the pooling of interest method. The net
assets of the transferor entity or business are accounted at their carrying amounts on the date of acquisition subject to necessary
adjustments required to harmonise accounting policies. Any excess or shortfall of the consideration paid over the share capital or
the transferor entity or business is recognised as capital reserve under equity.
The financial information in the financial statements in respect of prior periods shall be restated as if the business combination
had occurred from the beginning of the preceding period.
xxiv. Impairment
Assets that are subject to depreciation and amortisation and assets representing investments in subsidiary and associate
companies are reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may not be
recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and
material adverse changes in the economic environment.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To
calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best
estimate of the amount obtainable from the sale of an asset in the arm's length transaction between knowledgeable, willing
parties, less the cost of disposal.
Impairment losses, if any, are recognised in the Statement of Profit and Loss and included in depreciation and amortisation
expense. Impairment losses, on assets other than goodwill are reversed in the Statement of Profit and Loss only to the extent that
the asset's carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had
previously been recognised.
xxv. Events after reporting date
Where events occurring after the balance sheet date till the date when the financial statements are approved by the Board of
Directors of the Company, provide evidence of conditions that existed at the end of the reporting period, the impact of such
events is adjusted within the financial statements. Otherwise, events after the reporting balance sheet date of material size or
nature are only disclosed.
H. Current / Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:
i. the asset/liability is expected to be realised/settled in the Company's normal operating cycle;
ii. the asset is intended for sale or consumption;
iii. the asset/liability is held primarily for the purpose of trading;
iv. the asset/liability is expected to be realised/settled within twelve months after the reporting period;
v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for atleast twelve
months after the reporting date;
vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for atleast twelve
months after the reporting date.
All other assets and liabilites are classified as non-current.
For the purpose of current / non-current classification of assets and liabilities, the Company has ascertained its normal cycle as
twelve months. This is based on the nature of services and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents.
64
2.A. PROPERTY, PLANT AND EQUIPMENT

(Rupees in crore)
Tangible Assets
Freehold Leasehold Freehold Leasehold Plant & Furniture Vehicles/ Office Total
Particulars Land Land Buildings Buildings Equipment & Fixtures Vessels Equipment
COST OF ASSETS
Gross Block as at 1/4/2018 331.32 89.49 711.60 25.54 1,089.67 60.90 14.19 64.66 2,387.37
Capital Work-in-Progress as at 1/4/2018 - - 451.60 - 74.66 1.50 - 5.77 533.53
Capital Expenditure during the year 8.62 - 317.67 5.17 255.23 5.74 2.73 12.21 607.37
Capital Work-in-Progress as at 31/3/2019 - - (629.80) - (162.51) (0.75) - (4.33) (797.39)
Additions 8.62 - 138.96 5.17 167.38 6.49 2.73 13.65 343.00
Deductions - - (0.47) (0.77) (5.53) (0.57) (0.25) (0.69) (8.28)
Gross Block as at 31/3/2019 339.94 89.49 850.09 29.94 1,251.52 66.82 16.67 77.62 2,722.09
DEPRECIATION
Total Depreciation as at 1/4/2018 - 3.83 54.57 7.00 367.11 25.25 2.90 33.82 494.48
Depreciation for the year - 2.35 30.72 3.94 143.33 7.72 1.21 12.51 201.78
Depreciation on Deductions / Adjustments - - (0.11) (0.39) (3.98) (0.42) (0.11) (0.58) (5.59)
NET BOOK VALUE

Net Block as at 31/3/2019 339.94 83.31 764.91 19.39 745.06 34.27 12.67 31.87 2,031.42
Capital Work-in-progress - - 629.80 - 162.51 0.75 - 4.33 797.39
Total as at 31/3/2019 339.94 83.31 1,394.71 19.39 907.57 35.02 12.67 36.20 2,828.81
Intangible Assets (other than internally generated)

Computer Technical Trademarks Total
Software Know-how
Particulars
COST OF ASSETS
Gross Block as at 1/4/2018 29.37 0.96 0.13 30.46
Additions 0.17 - - 0.17
Deductions (0.17) - - (0.17)
Gross Block as at 31/3/2019 29.37 0.96 0.13 30.46
AMORTIZATION
Total Amortisation as at 1/4/2018 9.82 0.96 0.12 10.90
Charge for the year 4.61 - 0.01 4.62
Deductions (0.15) - - (0.15)
Total Amortization as at 31/3/2019 14.28 0.96 0.13 15.37
NET BOOK VALUE

As at 31/3/2019 15.09 - - 15.09
Capital Work-in-progress 6.40 - - 6.40
Refer Note 24 for disclosure of contractual commitments for the recognition of Property, Plant and Equipments
65
2.A. PROPERTY, PLANT AND EQUIPMENT

(Rupees in crore)
Tangible Assets
Freehold Leasehold Freehold Leasehold Plant & Furniture & Vehicles/ Office Total
Particulars Land Land Buildings Buildings Equipment Fixtures Vessels Equipment
COST OF ASSETS
Gross Block as at 1/4/2017 300.70 89.49 581.08 17.88 930.36 56.31 14.01 58.62 2,048.45
Capital Work-in-Progress as at 1/4/2017 - - 329.82 - 72.39 2.17 0.02 6.91 411.31
Capital Expenditure during the year 31.00 - 252.58 7.66 165.91 4.12 0.37 5.52 467.16
Capital Work-in-Progress as at 31/3/2018 - - (451.60) - (74.66) (1.50) - (5.77) (533.53)
Additions 31.00 - 130.80 7.66 163.64 4.79 0.39 6.66 344.94
Deductions (0.38) - (0.28) - (4.33) (0.20) (0.21) (0.62) (6.02)
Gross Block as at 31/3/2018 331.32 89.49 711.60 25.54 1,089.67 60.90 14.19 64.66 2,387.37
DEPRECIATION
Depreciation on Deductions / Adjustments - - 0.69 - (1.07) (0.04) - (0.46) (0.88)
NET BOOK VALUE

Net Block as at 31/3/2018 331.32 85.66 657.03 18.54 722.56 35.65 11.29 30.84 1,892.89
Capital Work-in-progress - - 451.60 - 74.66 1.50 - 5.77 533.53
Total as at 31/3/2018 331.32 85.66 1,108.63 18.54 797.22 37.15 11.29 36.61 2,426.42

Computer Technical Trademarks Total
Software Know-how
Particulars
COST OF ASSETS
Gross Block as at 1/4/2017 6.85 0.96 0.13 7.94
Additions 22.52 - - 22.52
Deductions - - - -
Gross Block as at 31/3/2018 29.37 0.96 0.13 30.46
AMORTIZATION
Total Amortisation as at 1/4/2017 4.57 0.86 0.08 5.51
Charge for the year 5.29 0.10 0.04 5.43
Deductions (0.04) - - (0.04)
Total Amortization as at 31/3/2018 9.82 0.96 0.12 10.90
NET BOOK VALUE

As at 31/3/2018 19.55 - 0.01 19.56
Capital Work-in-progress 3.04 - - 3.04
Notes:
(a) In respect of the Company’s freehold land situated at Thane (transferred on Amalgamation of the erstwhile Lawkim Limited with the Company):
(i) Land admeasuring approximately one acre was the subject matter of dispute. The Company has filed an appeal in the Hon'ble High Court of
Judicature at Bombay, against the Order dated 23rd December, 2004 passed by the Third Additional District Judge, Thane. The Company has also
registered notice of lis pendens dated 17th May, 2005 with the Registrar of Sub-Assurance.
(ii) A part of the land was acquired by the Thane Municipal Corporation and the Company has an option for the Transferable Development Rights
(TDR) as compensation for the said acquisition. Pending the receipt of such compensation by the Company in the form of TDR, no adjustment has
been made in the books in this regard.
(b) Freehold Land includes (i) leasehold rights in perpetuity and (ii) transferable development rights (TDRs). Freehold Buildings include investments
representing shares in ownership of flats.
66
2.B. INVESTMENT PROPERTY

(Rupees in crore)
COST OF ASSETS
Gross Block as at 1/4/2017 399.68
Additions -
Deductions / Reclassification (0.86)
Additions 0.51
Deductions / Reclassification -
ACCUMULATED DEPRECIATION
Total Depreciation upto 1/4/2017 19.11
Depreciation for the year 9.19
Depreciation on Deductions (0.72)
Depreciation for the year 9.21
Depreciation on Deductions -
NET BOOK VALUE

Net Block as at 31/3/2019 362.54
Net Block as at 31/3/2018 371.24
(Rupees in crore)
2018-19 2017-18
Rental Income derived from investment properties 226.92 249.37
Direct operating expenses (including repairs and maintenance)
generating rental income 67.07 61.63
Profit arising from investment properties 159.85 187.74
As at 31st March, 2019 and 31st March, 2018, the fair values of the properties are Rs. 2,275.87 crore and Rs. 2,361 crore
respectively. These valuations are based on discounted cash flow method.
Reconciliation of fair value: (Rupees in crore)

Opening balance as at 1/4/2018 2,361.00
Fair value differences (85.13)
Purchases -
Closing balance as at 31/03/2019 2,275.87
The Company has applied the method of Discounted Cash Flow projections based on reliable estimates of future cash flows.
Description of valuation technique and key inputs to valuation on investment properties:

Valuation technique: Discounted Cash Flow
Significant unobservable inputs Range (weighted average)

Rent growth p.a. 5%
Long term vacancy rate 10%
Discount rate 15%
67
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
3. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
(at cost unless otherwise specified)
GRAND SUMMARY
TRADE INVESTMENTS
(a) Subsidiary companies
Equity Shares 31.83 31.83
Preference Shares/Preferred Stock 28.85 22.59
60.68 54.42
(b) Associate companies
Equity Shares
Common Stock 36.84 36.84
Contribution towards Capital of an LLP 3.38 3.03
40.22 39.87
(c) Joint Venture company
Equity Shares 0.75 0.75
101.65 95.04
UNQUOTED INVESTMENTS AT COST

(1) Investments in Equity Shares in direct Subsidiary Companies
(i) 5,050 Equity Shares of Rs.100 each in Godrej Infotech Limited 1.05 1.05
(ii) 48,723 Equity Shares of S$ 10 each in Godrej (Singapore) Pte. Limited 24.83 24.83
(iii) 98,170 Equity Shares of € 46 each in Veromatic International BV. 4.09 42.63
Less: Impairment Loss - (38.54)
4.09 4.09
The break-up value of shares in Veromatic International BV ('Veromatic') as per
the Balance Sheet as at 31st December, 2017 is much lower than their book
value (cost), signifying a substantial decline in the value of this investment,
which has been determined by the management as one that is other than
temporary. The Company has accordingly, accounted for the reduction in the
value of this investment amounting to Rs. 38.54 crore to recognise this decline,
as required by Ind AS-109, Financial Instruments. Veromatic is currently
evaluating a transition of manufacturing in India.
(iv) 3,00,000 Shares ("common stock with no par value") of Godrej Americas Inc. USA. 1.86 1.86
31.83 31.83
(2) Investments in Preference Shares of Subsidiary Companies

(i) 6,70,121 Series A Preferred Stock shares of par value $0.001 each in Sheetak Inc., USA 6.71 6.71
(ii) 12,61,533 (as at 31-03-2018: 9,42,506) Series B Preferred Stock shares of par
value $0.001 each in Sheetak Inc., USA 22.14 15.88
28.85 22.59
68
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
(3) Investments in Equity Shares of Joint Ventures

(i) 7,50,000 Equity Shares of Rs. 10 each in Godrej Consoveyo Logistics Automation
Limited (formerly, Godrej Efacec Automation & Robotics Limited)
0.75 0.75
(4) Investments in Equity Shares of Associates
(i) Contribution towards 23.76% (as at 31-03-2018: 23.91%) of an Associate, Urban
Electric Power Inc,USA [17,75,385 (as at 31-03-2018: 17,75,385) common units
@ USD 3.25 per unit] 36.84 36.84
(5) Investments in Limited Liability Partnership Firms
(i) Contribution towards 50% of the Fixed Capital of Godrej & Boyce Enterprises LLP* - -
(ii) 68% profit sharing in Godrej Property Developers LLP. - -
(iii) Contribution towards 20% of the Capital of Future Factory LLP
(including share of profit of Rs. 0.35 crore booked during the year;
previous year: Rs.0.36 crore) 3.38 3.03
(a) Total capital of the Firm: Rs. 10.31 crore
(b) Names of other Partners and % share in Capital:
Mr. Jashish Navin Kambli - 56%
Mrs. Geetika Kambli - 24%
*(Amount less than Rs.50,000) 3.38 3.03
Total Unquoted Non-current Trade Investments 101.65 95.04
C. DISCLOSURE
(a) Aggregate amount of Unquoted Investments 101.65 95.04
(b) Aggregate amount of Impairment in the value of Investments 81.56 81.56
Notes:
Non-current investments in Subsidiaries, Associates and Joint Ventures are stated at cost
(unless otherwise stated) as per Ind AS 27; however, for any diminution, other than
temporary in the value of investments, the book value is reduced to recognise the decline.
In cases where these investments are carried at their book values, which are higher than
their fair values, the diminution in the value of such investments is considered to be of a
temporary nature, in view of the Company's long-term financial involvement in such
investee companies.
4. OTHER INVESTMENTS
(a) QUOTED
(1) Investments in Equity Shares (Fully Paid up unless stated otherwise)
(At Fair Value Through Other Comprehensive Income):
(i) 7,50,11,445 (as at 31-03-2018: 5,00,07,630) Equity Shares of Re. 1 each in
Godrej Consumer Products Limited (2,50,03,815 Bonus shares issued during the
year) 5,154.43 5,469.08
(ii) 1,06,50,688 Equity Shares of Rs. 5 each in Godrej Properties Limited 867.34 773.13
(iii) 12,000 Equity Shares of Rs. 10 each in Central Bank of India 0.04 0.09
(iv) 52,590 Equity Shares of Rs. 2 each in Housing Development Finance
Corporation Limited 10.35 9.60
(v) 68,65,666 Common Shares of par value USD 0.001 in Verseon Corporation USA
(purchased during the year 2015-16 at a total cost of Rs.100.57 crores) 52.31 83.59
69
As at As at
31-03-2019 31-03-2018
(2) Investments in Preference Shares

(i) Nil (as at 31-03-2018: 2,01,54,008) 7% Redeemable Preference Shares of Rs. 68
each in 3DPLM Software Solutions Limited (redeemed during the year)
- 135.18
(3) Investments in Tax-Free Bonds

(i) 1,236 National Highway Authority of India Bonds of Rs.1,000 each 0.13 0.14
Total Quoted Non-current Non-Trade Other Investments 6,084.60 6,470.81
(b) UNQUOTED
(1) Investments in Equity Shares
(i) 50 Equity Shares of Rs. 50 each in Godrej & Boyce Employees’ Co-operative
Consumer Society Limited* - -
(ii) 1,000 Equity Shares of Rs. 10 each in Super Bazar Cooperative Stores Limited* - -
(iii) 1,000 Equity Shares of Rs. 10 each in Saraswat Co-operative Bank Limited 0.02 0.02
(iv) 4,000 Equity Shares of Rs. 25 each in The Zoroastrian Co-operative Bank Limited 0.11 0.10
(v) 2 Equity Shares of Rs. 10 each in Brihat Trading Private Limited* - -
(vi) 100 Equity Shares of Rs. 100 each in Gharda Chemicals Limited
(Shares have not been registered in the Company’s name) 0.10 0.10
(vii) 1,823 Equity Shares of Rs.10 each in Edayar Zinc Limited (erstwhile Binani Zinc
Ltd)- At Book Value* - -
(viii) 15,000 Equity Shares of Rs. 1,000 each in Global Innovation and Technology
Alliance (a limited company under the purview of Section 8 of the Companies
Act, 2013) 1.48 3.41
(ix) 84,375 Equity Shares of Rs.10 each in Nimbua Greenfield (Punjab) Limited 1.12 1.07
(x) Contribution towards 19.61% of the Capital of Proboscis Inc., USA
(25,000 shares of par value USD 0.01) - -
(xi) 1,400 Shares of Rs. 10 each in Godrej One Premises Management Private Limited* - -
Total Unquoted Non-current Non-Trade Other Investments 2.83 4.70

Grand Total 6,087.43 6,475.51
*(Amount less than Rs.50,000)
C. DISCLOSURE
(a) Aggregate amount of Quoted Investments and market value thereof 6,084.60 6,470.81
(b) Aggregate amount of Unquoted Investments 2.83 4.70
6,087.43 6,475.51
(c) Aggregate amount of Impairment in the value of Investments - -
70
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
5. LOANS (Unsecured, Considered Good)

(a) Deposits 58.04 69.99
Total 58.04 69.99
6. OTHER NON-CURRENT ASSETS

(a) Capital Advances 18.42 16.67
(b) Prepaid Expenses 3.46 5.76
(c) Other Advances 31.97 34.50
Total 53.85 56.93
7. INVENTORIES (At lower of Cost and Net Realisable Value)

(a) Raw Materials (includes raw materials in transit: Rs. 35.08 crore; as at 31-03-2018: Rs.
36.77 crore ) 532.37 538.13
(b) Work-in-Process 123.93 210.44
(c) Finished Goods 716.50 631.09
(d) Stock in Trade (includes goods in transit: Rs. 68.66 crore; as at 31-03-2018: Rs. 61.37 crore ) 533.65 543.35
(e) Spares and Components for after-sales service 94.43 101.16
(f) Consumable Stores and Spares 84.00 52.36
(g) Loose Tools 23.54 18.05
(h) Construction Work-in-Progress [includes goods in transit Rs. Nil (as at 31-03-2018: Rs.
13.99 crore) 270.53 239.84
Total 2,378.95 2,334.42
Break-up of Inventories
(a) Raw Materials
(i) Mild Steel 158.94 145.93
(ii) Others 373.43 392.20
532.37 538.13
(b) Work-in-Process
(i) Consumer Durables 46.61 94.81
(ii) Industrial Products 77.32 115.63
123.93 210.44
(c) Finished Goods
(i) Manufactured
(1) Consumer Durables 647.60 591.63
(2) Industrial Products 68.90 39.46
716.50 631.09
(ii) Traded
(1) Consumer Durables 398.56 418.57
(2) Industrial Products 134.99 121.49
(3) Others 0.10 3.29
533.65 543.35
Total 1,250.15 1,174.44
The cost of inventories recognised as an expense includes Rs. 112.81 crore (Rs.
82.27 crore as at 31st March, 2018) in respect of write-downs of inventory to
net realisable value.
71
As at As at
31-03-2019 31-03-2018
8. TRADE RECEIVABLES
Unsecured, Considered Good 2,248.21 2,352.95
Unsecured and considered doubtful 144.11 165.62
Less: Allowances for doubtful receivables (144.11) (165.62)
- -
Total 2,248.21 2,352.95
Note: For amounts due from related parties - Refer Note 47.
9. CASH AND BANK BALANCES

(A) Cash and Cash Equivalents
(i) Balances with Banks on Current Accounts 41.60 50.61
(ii) Cheques on Hand 207.66 236.41
(iii) Cash on Hand 1.27 1.40
Total Cash and Cash Equivalents 250.53 288.42
(B) Bank Balance other than Cash and Cash Equivalents

(i) Deposit Accounts (Earmarked for Statutory Fixed Deposit Repayment Reserve
net of amounts utilised for repayment of public deposits) 104.90 98.50
(ii) Other earmarked Accounts 18.89 24.29
Total Bank Balance 123.79 122.79
Total 374.32 411.21
10. OTHER CURRENT FINANCIAL ASSETS (Unsecured, Considered Good)

(a) Deposits 36.89 33.30
(b) Derivative Assets 5.57 0.39
(c) Convertible Promissory Notes subscribed - Urban Electric Power Inc. (Associate)
(Refer Note 47) 13.21 -
(d) Unbilled Revenue - 348.36
Total 55.67 382.05
11. OTHER CURRENT ASSETS (Unsecured, Considered Good)

(a) Advances to Suppliers 110.28 207.08
(b) Balances with Customs, Central Excise, Port Trust and other Authorities 259.59 211.85
(c) Prepaid Expenses 13.77 11.21
(d) Unamortised Guarantee Commission 2.30 1.89
(e) Contract Assets 455.90
Less: Expected Credit Loss 31.28
Net Contract Assets 424.62 -
(f) Other Current Assets 147.78 82.11
Total 958.34 514.14
Note: There were no impairment losses recognised on any contract asset in the
reporting period.
72
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
12. EQUITY SHARE CAPITAL

(a) Authorised:
(i) 1,100,000 Equity Shares of Rs. 100 each 11.00 11.00
(ii) 900,000 Cumulative Redeemable Preference Shares of Rs. 100 each 9.00 9.00
20.00 20.00
(b) Issued, Subscribed and Paid Up:
678,445 Equity Shares of Rs. 100 each fully paid up 6.78 6.78
(c) Reconciliation of shares outstanding at the beginning and at the end of the year:
As at As at
31-03-2019 31-03-2018
Fully paid Equity Shares No. of Shares Rs. in crore No. of Shares Rs. in crore
At the beginning of the year 6,78,445 6.78 6,78,448 6.78
Add: Issued during the year [see note (4) below] - - 1,77,429 1.77
Less: Cancelled during the year [see note (4) below] - - 1,77,432 1.77
At the end of the year 6,78,445 6.78 6,78,445 6.78
(1) The Company does not have any holding company.

(2) Details of Equity Shareholders holding more than 5% shares in the Company are given below:
As at 31/03/2019 As at 31/03/2018
Number % holding Number % holding
(i) Mr. A.B. Godrej individually and as a Trustee of ABG

Family Trust 41,100 6.06% 41,100 6.06%
(ii) Mr. N.B. Godrej individually and as a Trustee of NBG
Family Trust, BNG Family Trust, SNG Family Trust and
HNG Family Trust 1,02,679 15.13% 1,02,679 15.13%
(iii) Ms. S.G. Crishna individually and as a Trustee of SGC
Family Trust and FVC Family Trust 59,373 8.75% 59,373 8.75%
(iv) Ms. Nyrika Holkar individually and as a Trustee of NVC
Family Trust 34,421 5.07% 34,421 5.07%
(v) Mr. J.N. Godrej individually and as a Trustee of JNG Family
Trust, Raika Lineage Trust, The Raika Godrej Family Trust
and Navroze Lineage Trust 93,770 13.82% 93,770 13.82%
(vi) Mr. R.K. Naoroji individually and as a Partner of M/s. RKN
Enterprises 1,04,186 15.36% 1,04,186 15.36%
(vii) Trustees, Pirojsha Godrej Foundation - a public charitable
trust 1,57,500 23.21% 1,57,500 23.21%
(3) Terms/rights attached to Equity Shares: The Company has only one class of Equity Shares having a par value of Rs.100 per share.
Each holder of Equity Shares is entitled to one vote per share. Accordingly, all Equity Shares rank equally with regard to dividend and
share in the Company's residual assets. The dividend proposed by the Board of Directors is subject to the approval of the
Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company,
the holders of Equity Shares will be entitled to receive the residual assets of the Company, remaining after distribution of all
preferential amounts, in proportion to the number of Equity Shares held.
(4) The National Company Law Tribunal, Mumbai Bench had by its Order dated 23rd August, 2017, approved the Scheme of
Amalgamation of Godrej Investments Pvt. Ltd. (GIPL) with the Company. Accordingly, GIPL stood dissolved without being wound up
and the Board of Directors, at their Meeting held on 6th November, 2017 issued 1,77,429 Equity Shares to the Shareholders of GIPL
in lieu of 1,77,432 Equity Shares of Rs.100 each held by GIPL in the Company.
73
(Rupees in crore)
As at As at
13. OTHER EQUITY 31-03-2019 31-03-2018
(a) Capital Reserve 52.75 52.75

(b) Securities Premium 20.08 20.08
(c) General Reserve 645.85 645.85
(d) Debenture Redemption Reserve 75.00 66.67
(e) Retained Earnings 2,792.49 2,880.50
(f) Items of Other Comprehensive Income 5,613.52 5,719.66
Total 9,199.69 9,385.51
(1) The Directors do not propose any Final Dividend for the year.
(2) Capital Reserve: During amalgamation, the excess of net assets taken, over the cost of consideration paid by the Company are
treated as capital reserve. Further, it includes capital reserve on business combinations.
(3) Securities Premium: The amount received in excess of the face value of equity shares, is recognised as Securities Premium. The
reserve can be utilised in accordance with the provisions of the Act.
(4) General Reserve: The Company transferred a portion of the net profits before declaring dividend, to general reserve, pursuant to the
provisions of the Companies Act, 1956. Transfer to general reserve is not mandatory under the Act.
(5) Debenture Redemption Reserve: Reserve has been created out of profits of the Company available for payment of dividend at 25%
of the value of debentures, apportioned over the tenure of the debentures pursuant to the provisions of the Act. The amounts
credited to Debenture Redemption Reserve may not be utilised by the Company except to redeem debentures.
(6) Retained Earnings: Retained earnings are the profits earned till date, less transfers to / from general reserve, debenture redemption
reserve and other comprehensive income and distribution of dividend and dividend distribution tax thereon.
(Rupees in crore)
As at 31/03/2019 As at 31/03/2018
Non-current Current Non-current Current

portion maturities portion maturities
14. NON-CURRENT BORROWINGS
(a) Secured Redeemable Non-Convertible Debentures (NCDs)

(i) 8.90% (3 Years) 2019 Series I Debentures (alloted on
01/03/2016) - 150.00 249.54 -
(ii) 9.00% (5 Years) 2021 Series II Debentures (alloted on
08/03/2016) 249.59 - 249.42 -
249.59 150.00 498.96 -
(b) Secured Term Loans from Banks and Financial Institutions

(i) Term Loan from The Zoroastrian Co-operative Bank Ltd.
- - - 2.55
- - - 2.55
(c)Unsecured
(i) Interest-free Loans under the Sales Tax Deferral Scheme
of Maharashtra State Government 19.11 9.78 29.65 10.37
(ii) Fixed Deposits 529.84 163.21 265.58 416.18
548.95 172.99 295.23 426.55
Total 798.54 322.99 794.19 429.10
74
(i) Privately-placed NCDs issued by the Company are secured by a first ranking charge by way of a registered mortgage on the specified
immovable properties of the Company situated at Mumbai. These NCDs are redeemable at par on 22-04-2019 Rs. 250 crore (Series I)
and 22-04-2021 Rs. 250 crore (Series II). Out of the Rs. 250 crore (Series I) NCDs, Rs 100 crore were prepaid on 28-03-2019 on
communication from investor "ICICI Prudential Asset Management Company Limited". Interest on these NCDs is payable quarterly.
As per the Companies (Share Capital and Debentures) Rules, 2014, para 18(7), the Company is required to create a Debenture
Redemption Reserve of 25% of the value of debentures; it is also required to invest as earmarked 15% of the amount of its
debentures maturing during the next financial year. The Company has created a debenture redemption reserve of Rs. 75 crore.
(ii) Term Loan from The Zoroastrian Co-operative Bank Ltd. was secured by way of hypothecation of specified machinery and
equipment. It carried a floating interest rate of 10.50% p.a. (10.50% p.a. as at 31-03-2018), which was 2% p.a. below Bank's
Minimum Lending Rate of 12.50% p.a., subject to a minimum of 9.00% p.a. and a maximum of 12.50% p.a., and was repayable in 4
quarterly installments (3 installments of Rs. 0.63 crore each and last installment of Rs. 0.66 crore was repaid on 25/03/2019).
(iii) Interest-free Loans under the Sales Tax Deferral Schemes of Maharashtra State Government is payable in annual instalments as may
be prescribed in the Schemes, beginning from 21-04-2019 and continuing upto 21-04-2023.
(iv) Fixed Deposits from employees and public carry interest rates ranging from 7.85% p.a. to 9.75% p.a. payable monthly or half-yearly,
and have a maturity period of 3 years from the respective dates of deposit.
(v) Current maturities of Long-term Borrowings are disclosed under the head "Other Current Financial Liabilities" (Note 21)
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
15. OTHER NON-CURRENT FINANCIAL LIABILITIES

(a) Dealers’ Deposits 45.28 42.24
(b) Sundry Deposits and Advances 134.92 134.56
(c) Other Liabilities 2.52 9.45
Total 182.72 186.25
Sundry Deposits and Advances include:
(a) Rs. 24.80 crore (as at 31-3-2018: Rs. 24.80 crore) received towards hand-over of possession of land
to a public utility, and
(b) Rs. 0.75 crore (as at 31-3-2018: Rs. 0.75 crore) received towards Compensation against Land
acquired. These amounts have not been adjusted in the accounts in view of pending
suit/proceedings.
(Rupees in crore)
Current Provisions Non-current Provisions
As at As at As at As at
31/03/2019 31/03/2018 31/03/2019 31/03/2018
16. NON-CURRENT PROVISIONS
(a) Provision for Free Service under Product Warranties 25.19 25.05 45.96 40.14
(b) Provision for Employee Benefits 8.55 6.53 38.58 39.28
(c) Provision for Onerous Contracts 3.50 7.17 - -
Total 37.24 38.75 84.54 79.42
(i) Current provisions are disclosed under the head

"Current Provisions" (Note 23) As at As at
(ii) Movement of Provisions during the year: 31-03-2019 31-03-2018
Provision for Free Service under Product Warranties during the year:
Opening Balance 65.19 53.22
Add: Provision during the year 64.61 42.37
129.80 95.59
Less: Utilisation during the year 58.65 30.40
Closing Balance 71.15 65.19
75
17. DEFERRED TAX ASSETS / LIABILITIES AND TAX EXPENSE
(A) INCOME TAXES (Rupees in crore)

(a) Amounts recognised in Profit and Loss
Particulars Current Year Previous Year
Current income tax 105.00 149.53
Prior years' current tax adjustments 15.44 (4.62)
Deferred tax charged / (credit) (1.82) (20.06)
Prior years' deferred tax adjustments 8.00 -
Tax expense for the year 126.62 124.85
(b) Amounts recognised in other comprehensive income (Rupees in crore)

For the year ended 31/03/2019 For the year ended 31/03/2018
Particulars Before tax Tax (expense) Net of tax Before tax Tax (expense) Net of tax
benefit benefit
Remeasurements of defined benefit plans 4.66 (1.63) 3.03 (5.97) 2.07 (3.90)
(c) Reconciliation of effective tax rate (Rupees in crore)
Particulars Current Year Previous Year
Profit before tax 355.88 356.86

Tax Rate 34.94% 34.61%
Tax using the Company’s domestic tax rate 124.36 123.51
Tax effect of:
Tax impact of income not subject to tax (32.54) (19.51)
Tax impact of expenses subject to tax 0.80 36.47
Impact of 80IC (4.68) (5.86)
Disallowance u/s 14A of expenses (not interest) 0.12 0.09
Tax impact of realised gain on sale of equity shares through OCI 15.23 -
Adjustment for current tax of prior period 15.44 (7.89)
Adjustment for deferred tax of prior period 8.00 -
Others (0.11) (1.96)
Tax Expense Recognised 126.62 124.85
17. (B) DEFERRED TAX ASSETS / LIABILITIES (NET)

MOVEMENT IN DEFERRED TAX BALANCES
(Rupees in crore)
Movement during the year As at 31/03/2019
Particulars Net balance Recognised in Recognised Charge / (Credit) Net Deferred tax Deferred tax
01/04/2018 the Statement in OCI to Retained asset liability
of profit and Earnings
loss
Deferred tax assets / (liabilities)

Property, plant and equipment (163.89) (6.09) - - (169.98) - (169.98)
Provision for Doubtful Debts / Advances 57.60 6.37 - - 63.97 63.97 -
Expenditure accrued but disallowed and to be -
claimed in future on payment basis (43B items) : -
Leave Encashment Provision 16.01 0.46 - - 16.47 16.47 -
Kolkatta Branch Entry Tax 9.21 3.93 - - 13.14 13.14 -
Others 2.69 (2.85) - 1.87 1.71 1.71 -
Remeasurement of Defined Benefit Liability 5.64 - (1.63) - 4.01 4.01 -
Fair valuation of investments - - - - - - -
Tax Adjustments of prior years - 8.00 - - 8.00 8.00
Adjustments pursuant to Ind AS 115 - - - - - -
(72.74) 9.82 (1.63) 1.87 (62.68) 107.30 (169.98)
MAT Credit Entitlement * 110.18 (16.00) - - 61.18 61.18 -
Deferred Tax Assets / (Liabilities) 37.44 (6.18) (1.63) 1.87 (1.50) 168.48 (169.98)
* MAT utilised during the year is Rs. 33 crore (previous year: Rs.Nil) and adjustment on account of prior years is Rs. 16 crore (previous year: Rs. Nil).
76
(Rupees in crore)
Movement during the year As at 31/03/2018
Particulars Net balance Recognised in Recognised Charge / (Credit) Net Deferred tax Deferred tax
01/04/2017 the Statement in OCI to Retained asset liability
of profit and Earnings
loss
Deferred tax assets / (liabilities)
Property, plant and equipment (155.00) (8.89) - - (163.89) - (163.89)
Provision for Doubtful Debts / Advances 70.00 (12.40) - - 57.60 57.60 -
Expenditure accrued but disallowed & to be
claimed in future on payment basis (43B items) :
Leave Encashment Provision 15.00 1.01 - - 16.01 16.01 -
Kolkatta Branch Entry Tax 7.00 2.21 - - 9.21 9.21 -
Others (0.13) 2.83 - - 2.69 2.69 -
Remeasurement of Defined Benefit Liability 3.57 - 2.07 - 5.64 5.64 -
Fair valuation of investments 0.06 (0.06) - - - - -
Adjustments pursuant to business combinations (4.36) 4.36 - - -
(63.86) (10.94) 2.07 0.00 (72.74) 91.15 (163.89)
MAT Credit Entitlement 79.18 31.00 - - 110.18 110.18 -
Deferred Tax Assets / (Liabilities) 15.32 20.06 2.07 0.00 37.44 201.33 (163.89)
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred
income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the
period over which deferred income tax assets will be recovered.
As on 31-03-2019, the tax liability with respect to the dividends proposed is Rs. Nil (as at 31-03-2018 : Rs. Nil)
77
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
18. OTHER NON-CURRENT LIABILITIES

Revenue received in advance 15.05 15.84
Total 15.05 15.84
19. CURRENT BORROWINGS

(a) Secured
(i) Working Capital Facilities from Banks (Net) 328.78 488.47
(ii) Export Credits from Export-Import Bank of India under a revolving credit limit 184.00 338.00
512.78 826.47
(b) Unsecured
(i) Deposits/Short-term Loans from Companies 0.25 0.25
(ii) Deposits from Shareholders 176.00 128.50
(iii) Negotiable Commercial Paper 600.00 -
(iv) Short-term Loans from Banks 120.00 225.01
(v) Acceptances 89.04 134.87
(vi) Other Borrowings 215.25 114.62
1,200.54 603.25
Total 1,713.32 1,429.72
(i) Working Capital Facilities from Banks are secured by a first pari passu charge
by way of hypothecation of inventories and book debts. They carry interest
rates ranging from 8.45% p.a. to 12.80% p.a. and are generally renewable each
year.
(ii) Export Credits from Export-Import Bank of India are secured by first equitable
mortgage of specified immovable properties situated at Mumbai. They carry an
interest rate ranging from 8.00% to 9.00% p.a (excluding interest subvention
of 3%) and are payable/ renewable after 180/365 days.
(iii) Deposits/Short-term Loans from Companies carry an interest rate of 8.00% p.a.
payable quarterly, and have a maturity period of 6 months from the respective
dates of deposit.
(iv) Deposits from Shareholders have a maturity period of 3 months from the
respective dates of deposit, and carry an interest rate of 8.25% to 8.50% p.a.
payable at the month-end and at maturity.
(v) In respect of Negotiable Commercial Paper, the maximum balance outstanding
during the year was Rs. 600 crore (Previous Year: Rs. 600 crore).
(vi) Short-term Loan from Banks carry an interest rate of 8.80% payable after 45
days.
(vii) Other Borrowings are Buyers Credit from Banks, due and payable in foreign
currency, and carry interest rates ranging from 3.21% to 3.28% p.a.
20. TRADE PAYABLES

(a) Due to Micro and Small Enterprises (Refer note below) 100.86 12.18
(b) Other Trade Payables 1,421.73 1,517.94
(c) Due to Related Parties (Refer note i below) 16.69 6.77
Total 1,539.28 1,536.89
Notes:
(i) For amounts due to related parties - Refer Note 47.
78
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
Disclosure Under the Micro, Small and Medium Enterprises Developments Act,
2006 are provided as under for the year 2018-2019, to the extent the Company
has received intimation from the "Suppliers" regarding their status under the
Act.
(i) Principal amount and the interest due thereon remaining unpaid to each
supplier at the end of each accounting year (but within due dates as per the
MSMED Act)
Principal amount due to micro and small enterprise 100.86 12.18
Interest due on above - -
(ii) Interest paid by the Company in terms of Section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006, along-with the amount of the
payment made to the supplier beyond the appointed day during the period.
- -
(iii) Interest due and payable for the period of delay in making payment (which
have been paid but beyond the appointed day during the period) but without
adding interest specified under the Micro, Small and Medium Enterprises Act,
2006. 0.70 -
(iv) The amount of interest accrued and remaining unpaid at the end of each
accounting year. 0.70 -
(v) Interest remaining due and payable even in the succeeding year, until such
date when the interest dues as above are actually paid to the small enterprises.
- -
21. OTHER CURRENT FINANCIAL LIABILITIES

(a) Current maturities of long-term borrowings (Note 14) 322.99 429.10
(b) Interest accrued but not due on borrowings 11.99 14.06
(c) Employee benefits payable 237.72 222.60
(d) Unclaimed Fixed Deposits (matured deposits not claimed on due dates) 10.30 7.70
(e) Derivative Liability 8.62 0.55
(f) Other payables 469.17 475.44
Total 1,060.79 1,149.45
(i) There is no amount due and outstanding to be credited to the Investor
Education and Protection Fund, in respect of matured but unclaimed Fixed
Deposits and any unclaimed interest.
(ii) Other Payables include accrued expenses and creditors for capital procurement.
22. OTHER CURRENT LIABILITIES

(a) Contract Liability (Advances from Customers and Deferred Revenue) 855.36 819.40
(b) Statutory dues including provident fund and tax deducted at source 83.07 95.23
Total 938.43 914.63
The above amount of Deferred Revenue of Rs. 12.28 crore (previous year Rs. 15.54
crore) is the revenue recognised in the reporting period that was included in the
contract liability balance at the beginning of the period.
23. CURRENT PROVISIONS

(a) Provision for Free Service under Product Warranties 25.19 25.04
(b) Provision for Employee Benefits 8.55 6.53
(c) Provision for Loss on Onerous Contracts 3.50 7.17
Total 37.24 38.74
79
24. CONTINGENT LIABILITIES AND COMMITMENTS

(a) Performance Guarantees given by the Company’s Bankers against counter-guarantees given by the Company: Rs. 1629.56 crore (as at
31-03-2018: Rs. 1,412.04 crore).
(b) Guarantees given by the Company’s Bankers on behalf of subsidiary/associate companies against counter-guarantees given by the
Company: Rs. 0.22 crore (as at 31-03-2018: Rs. 0.22 crore).
(c) Corporate Guarantees given to Bankers to secure credit facilities extended by them to a subsidiary and an associate company: Rs.
227.76 crore (as at 31-03-2018: Rs. 148.31 crore)
(d) Guarantees given by Export-Import Bank of India, against the security of first equitable mortgage of specified immovable properties
situated at Vikhroli, Mumbai: Rs. 100.63 crore (as at 31-03-2018: Rs. 213.16 crore).
(e) Excise Duty/Service Tax/Sales Tax/Property Tax demands/Non-Agricultural Tax/Income tax in dispute and pending at various stages of
appeal: Rs. 120.49 crore (as at 31-3-2018: Rs. 93.40 crore).
(f) The State of Maharashtra has filed a suit against the Company, being Suit No. 679 of 1973, in the High Court of Judicature at Bombay,
claiming ownership of part of the Company’s lands at Vikhroli, Mumbai. In the said Suit, which is still pending, various claims have
been raised, which are undetermined and not acknowledged as debts due by the Company. According to the Company’s legal
advisers, the Company has a complete defence against the plaintiff in the said Suit, and the said Suit is not sustainable.
(g) Claims against the Company under the Industrial Disputes Act, 1947 - amount indeterminate.
(h) Other Contingent Liabilities: Rs. 0.58 crore (as at 31-3-2018: Rs. 0.58 crore)
(i) Disputed Provident Fund liability for the period March 1996 to September 1997 arising on account of disapproval of infancy benefit:
Rs. 0.54 crore (as at 31-3-2018: Rs. 0.50 crore). The Supreme Court of India has allowed the Company's appeal and set aside the
judgment of the High Court of Punjab & Haryana; the matter has been remanded to the Regional Provident Fund Commissioner for a
fresh decision: Regional Provident Fund Commissioner, again passed an order, raising a demand. An appeal was preferred against the
above order with the EPF Appellate Tribunal, New Delhi. As the EPF Appellate Tribunal has been dissolved by the Government of
India, the case has been transferred to the Central Government Industrial Tribunal at Chandigarh where it is under adjudication.
(j) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 129.11 crore (as at 31-03-2018:
Rs. 135.22 crore).
Note: Future cash outflows in respect of items (f) and (g) above are determinable only on receipt of judgements/decisions pending
with various forums/authorities.
(Rupees in crore)
25 A. REVENUE FROM OPERATIONS

(a) Sale of Products 8,878.29 8,187.52
(b) Sale of Services 1,988.76 1,426.63
Net Sales (Products and Services) 10,867.05 9,614.15
(c) Other Operating Revenue:
(i) Scrap Sales 99.96 106.20
(ii) Leave and License Dues and Rent 30.28 27.26
(iii) Export Incentives 24.42 16.09
(iv) Sundry Receipts 29.84 33.06
184.50 182.61
Consequent to the introduction of Goods and Service Tax (GST) with effect
from 1st July, 2017, Central Excise, Value Added Tax (VAT) etc. have been
subsumed into GST. In accordance with Indian Accounting Standard - 115 on
Revenue and Schedule III of the Companies Act, 2013, unlike Excise Duties,
levies like GST, VAT etc. are not part of Revenue. Accordingly, the figures for
the year ended 31st March, 2019 are not strictly relatable to previous year.
The following additional information is being provided to faciliate such
understanding:
Revenue from Operations (A) 11,051.55 9,796.76
Excise Duty on Sale (B) - 152.86
Revenue from Operations excluding excise duty on sale (A-B) 11,051.55 9,643.90
80
(Rupees in crore)
25 A. Disaggregation of Revenue
(a) Consumer Durables
At a point in time 6,811.16 6,329.99
Over time 216.76 155.94
Total 7,027.92 6485.93
(b) Industrial Products
At a point in time 1,534.37 1,327.05
Over time 1,789.31 1,570.97
Total 3,323.68 2,898.02
(c) Others
At a point in time 515.45 542.58
Over time - -
Total 515.45 542.58
26. OTHER INCOME

(a) Interest Income (on financial assets carried at amortised cost) 20.90 16.79
(b) Dividends from Subsidiary Companies 0.24 0.23
(c) Other Dividends 92.52 56.37
(d) Profit on Sale of Current Investments (Net) 1.63 10.84
(e) Share of Profit in a firm (LLP) 0.35 0.36
(f) Profit on Sale/Disposal of Fixed Assets (Net) - 6.53
(g) Net foreign exchange gains - 16.28
Total 115.64 107.40
27. COST OF MATERIALS CONSUMED

Stocks of Raw Materials at the beginning of the year 538.13 394.94
Add: Raw Materials purchased during the year 2,701.69 2,884.68
Less: Sale of Raw Materials 178.81 91.43
3,061.01 3,188.19
Less: Stocks of Raw Materials at the close of the year 532.37 538.13
Total 2,528.64 2,650.06
28. PURCHASES OF STOCK-IN-TRADE (TRADED GOODS)

(a) Consumer Durables 2,793.35 2,141.75
(b) Industrial Products 603.00 373.92
(c) Others 86.41 70.20
Total 3,482.76 2,585.87
29. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROCESS AND

STOCK-IN-TRADE
(a) Stocks at the beginning of the year:
(i) Finished Goods 1,275.60 1,039.36
(ii) Work-in-Process 210.44 386.86
1,486.04 1,426.22
(b) Less: Stocks at the end of the year:
(i) Finished Goods 1,344.58 1,275.60
(ii) Work-in-Process 123.93 210.44
1,468.51 1,486.04
17.53 (59.82)
Net change in Excise Duty on Finished Goods - (3.95)
Total 17.53 (63.77)
81
(Rupees in crore)
30. PROPERTY DEVELOPMENT AND CONSTRUCTION EXPENSES (COMMERCIAL

PROJECTS)
(a) Construction Work-in-Progress at the beginning of the year 239.84 277.78
(b) Add: Project Expenses incurred during the year:
(i) Development and Construction Expenses 988.71 690.31
(ii) Employee Remuneration and Benefits 53.27 44.96
(iii) Professional Charges - 3.47
(iv) Others 29.09 77.39
1,071.07 816.13
(c) Less: Construction Work-in-Progress at the end of the year 270.53 239.84
Total 1,040.38 854.07
31. EMPLOYEE BENEFITS EXPENSE

(a) Salaries, Wages and Bonus 1,084.01 1,012.10
(b) Company’s contribution to Employees’ Provident and other Funds 46.12 42.53
(c) Company’s contribution to Employees’ Gratuity Trust Fund 14.27 12.70
(d) Workmen and Staff Welfare Expenses 26.08 29.67
(e) Voluntary Retirement Compensation 0.23 0.17
Total 1,170.71 1,097.17
32. FINANCE COSTS

(a) Interest on Term Loans and Debentures 48.32 46.66
(b) Interest on Fixed Deposits and other Unsecured Loans 57.67 66.66
(c) Other Interest costs 113.54 86.48
219.53 199.80
(d) Less: Adjustments for Interest Capitalised 55.29 32.66
164.24 167.14
(e) Finance Charges 12.16 5.87
(f) Net (gain)/loss on foreign currency transactions/translations
(attributable to finance costs) (8.40) 7.41
Total 168.00 180.42
33. OTHER EXPENSES

(a) Stores, Spare Parts and Other Materials consumed 179.95 129.08
(b) Power and Fuel 148.51 138.44
(c) Rates and Taxes 34.28 46.52
(d) Insurance 14.84 14.52
(e) Repairs and Maintenance of Buildings 44.61 29.17
(f) Repairs and Maintenance of Machinery 10.47 11.21
(g) Technical Fees 10.62 4.06
(h) Royalty 2.45 1.46
(i) Rent [Note 49(a)] 134.76 110.98
(j) Establishment and Other Expenses [Notes 49(a)] 541.73 412.02
(k) Donations and Contributions 1.40 0.92
(l) Motor Car and Lorry Expenses [Note 49(a)] 14.87 15.98
(m) Freight, Transport and Delivery Charges 507.23 449.40
(n) Advertisement and Publicity 294.28 245.27
(o) Commission 48.79 34.77
(p) Professional Fees 145.04 118.24
(q) CSR Expenditure [Note 38] 5.59 4.62
(r) Bad Debts/Advances written off 12.12 61.95
(s) Allowances for doubtful debts, advances and contract assets 14.43 26.37
(t) Provision for Free Service under Product Warranties 5.02 11.52
(u) Loss on account of Finished Goods damaged/destroyed by fire (Net) 3.86 -
82
(Rupees in crore)
(v) Loss on Sale/Disposal of Fixed Assets (Net) 0.57 -

(w) Net foreign exchange loss 15.50 -
Total 2,190.92 1,866.50
Note: Research and Development expenses for the year amounting to Rs.
70.41 crore (previous year: Rs. 53.72 crore), have been charged to the
Statement of Profit and Loss under the various heads of account
34. EXCEPTIONAL ITEMS

(a) Profit on Sale of TDR - 2.66
(b) Diminution in the Value of investments in Subsidiaries - (38.54)
Total - (35.88)
35. DISCLOSURE IN RESPECT OF PROPERTY DEVELOPMENT PROJECTS AND CONSTRUCTION

CONTRACTS
(a) Contract revenue recognised and shown under Sales for the year 1,146.25 931.56
(b) For all contracts in progress at the year-end:
(i) Aggregate amount of costs incurred and profits recognised (less
recognised losses) upto the balance sheet date 1,798.46 1,969.58
(ii) Advances received from customers as at the balance sheet date 441.37 214.53
(iii) Work-in-Progress at the end of the year 270.53 239.84
(iv) Excess of revenue recognised over actual bills raised 455.90 346.52
(v) Gross amount due from customers as at the balance sheet date 451.61 376.34
(c) The Company follows the Percentage of Completion Method to
determine the project revenue to be recognised for the year.
(d) The Company follows the Project Costs Incurred Method to determine
the stage of completion of each project.
36. COMMON EXPENSES SHARED BY A SUBSIDIARY COMPANY

Amounts recovered from a subsidiary company, Godrej Infotech Limited,
towards its share of various common expenses incurred by the Company. 3.31 3.00
37. AUDITORS’ REMUNERATION AND COST AUDIT FEES

Establishment & Other Expenses [Note 33 (j)] include:
(a) Remuneration of Auditors (net of Service Tax / Goods and Service Tax):
(i) For Statutory Audit 1.60 1.40
(ii) For Certification 0.13 0.07
(iii) Reimbursement of Expenses 0.05 -
(b) Cost Audit Fees (including Reimbursement of Expenses) (net of Service Tax) 0.40 0.40
38. EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES 5.59 4.62

As per Section 135 of the Companies Act 2013 (the Act), the Company was
required to spend Rs. 5.53 crore, being 2% of the average net profits for the
three immediately preceding financial years (calculated in accordance with the
provisions of Section 198 of the Act), in pursuance of its Corporate Social
Responsibility Policy. The Company has, however, spent a sum of Rs. 5.59
crore [refer note 33(q)] during the year on the following corporate social
responsibility activities: promoting education through employment enhancing
vocational skills to rural and urban youth; promoting healthcare and
community awareness campaigns about healthcare and sanitation in rural
areas; and environmental sustainability projects for maintaining quality of soil,
air and water.
Amount spent during the year on: Already Paid Yet to be Paid Total
(i) Construction/Acquisition of any asset - - -
(ii) On purposes other than (i) above 5.59 - 5.59
5.59 - 5.59
83
(Rupees in crore)
39. EXCHANGE DIFFERENCES ON FOREIGN CURRENCY TRANSACTIONS

(a) Net exchange (gain)/loss arising on foreign currency transactions / translations
dealt with in the Statement of Profit and Loss under the related heads of
expenses/income 4.04 (17.65)
(b) Net exchange (gain) / loss on mark to market of outstanding foreign exchange
contracts at the year end. 3.97 2.17
40. EARNINGS PER SHARE

(a) Profit after Taxes for the Year attributable to Equity Shareholders 229.26 232.01
(b) Number of Equity Shares of Rs.100 each issued and outstanding:
(i) At the end of the year 6,78,445 6,78,445
(ii) Weighted average number of Shares outstanding during the year 6,78,445 6,78,445
(c) Basic and Diluted Earnings per Share (a/b) (Statement of Profit and Loss, item XI) Rs. 3,379 Rs. 3,420
41. CONTRACT COSTS

(a) Change in Contract Assets
Opening Balance of Contract Assets (net of expected credit loss) 348.36
Less: Adjustment on account of Ind AS 115 transition 35.71
Revenues recognised during the year 1,146.25
Less: Progress Billing during the year 1,003.00
Closing Balance of Contract Assets 455.90
(b) The aggregate value of unexecuted Order Book. (Out of this the Company
expects to recognise revenue of around 51% within next one year and the
remaining thereafter). 2,982.74 2,893.99
(c) Cost to Obtain the Contract:
I. Amount of amortisation recognised in the Statement of Profit and Loss
during the year 2.95 -
II. Amount recognised as an asset 4.20
The Company has not adjusted the promised amount of consideration for the
efforts of a significant financing component if the Company expects, at
contract inception, that the period between when the Company transfers a
promised good or service to a customer and when the customer pays for that
good or service will be less than one year.
The Company has recognised the incremental costs of obtaining a contract as

an expense in the Statement of Profit and Loss when incurred, if the
amortisation period of the asset that the Company otherwise would have
recognised is one year or less.
(d) Reconciliation of revenue recognised in the Statement of Profit and Loss

with contracted price
Revenue from contracts with customers (as per Statement of Profit and
Loss) 1,146.25
Add: Discounts, Rebates, Refunds, Credits, Price Concessions -
Less: Incentives, performance bonuses -
Contracted price with customers 1,146.25
(e) Applying the practical expedient given in Ind AS 115, the Company has not
disclosed the remaining performance obligation related disclosures as the
revenue recognised corresponds directly with the value to the customer of the
Company’s performance obligation till date.
84
42. DETAILS OF EMPLOYEE BENEFITS:

(Rupees in crore)
(a) DEFINED BENEFIT PLAN - PROVIDENT FUND:

Amount contributed by the Company to the Employees’ Provident and other Funds
recognized as an expense and included under Employee Benefits Expense 46.12 42.53
The details of the plan assets position as at 31st March, 2019 is given below:
As at As at
31-03-2019 31-03-2018
Present value of benefit obligation at year end 987.98 901.26

Plan assets at year end, at fair value, restricted to 987.98 901.26
Asset recognised in balance sheet -
Assumptions used in determining the present value obligation of the interest rate guarantee
under the Projected Unit Credit Method (PUCM):
Discounting Rate 7.69% 7.83%
Expected Guaranteed interest rate. Rate mandated by
Employee Provident Fund Organisation (EPFO) and the
same is used for valuation purposes. 8.65% 8.55%
(b) DEFINED BENEFIT PLAN – GRATUITY:

(i) Change in Present Value of Obligation :
Liability at the beginning of the year 179.89 171.89
Interest cost 14.09 12.26
Current service cost 12.88 11.45
Benefit paid (12.97) (22.66)
Actuarial (gain)/loss on obligations due to:
Financial Assumptions (4.97) 5.37
Experience Adjustments 2.41 1.58
Demographic Assumptions (1.72) -
Liability at the end of the year 189.61 179.89
(ii) Change in Plan Assets:

Fair value of plan assets at the beginning of the year 161.10 153.93
Assets transferred in 0.11 0.35
Expected return on plan assets 12.59 11.06
Contributions by Employer 19.09 17.44
Benefit paid (12.97) (22.66)
Actuarial gain/(loss) on plan assets 0.38 0.98
Fair value of plan assets at the end of the year 179.92 161.10
Total actuarial gain/(loss) to be recognised 4.66 (5.97)
(iii) Amounts recognised in the Balance Sheet:
Difference (9.69) (18.79)
Amount recognised in the Balance Sheet (9.69) (18.79)
85
(Rupees in crore)
(iv) Amounts recognised in the Statement of Profit and Loss:

Interest Income (12.59) (11.06)
Total Expense recognised in the Statement of Profit and Loss 14.38 12.65
(v) Amounts recognised in the Other Comprehensive Income (OCI):

Acturial Gains/(Losses) on Obligation for the year (4.28) 6.95
Return on plan assets, excluding interest income (0.38) (0.98)
Net (Income)/Expense for the year recognised in OCI (4.66) 5.97
(vi) Actuarial Assumptions:

Discount rate 7.69% 7.83%
Rate of return on plan assets 7.69% 7.83%
Salary escalation 7.50% 8.00%
(vii) Estimated Contribution to be made in next financial year 21.80 23.64
(c) GENERAL DESCRIPTION OF DEFINED BENEFIT PLAN – GRATUITY:

Gratuity is payable to all eligible employees of the Company on superannuation, death or
permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972, or
as per the Company’s Scheme, whichever is more beneficial.
(d) MAJOR CATEGORY OF PLAN ASSETS RELATING TO GRATUITY:

(as a percentage of total plan assets:)
Government Securities 41.54% 40.92%
Special Deposit Scheme 14.87% 16.66%
Corporate Bonds 37.37% 36.79%
Equity 3.18% 2.72%
Others 3.04% 2.91%
Total 100.00% 100.00%
(e) DEFINED BENEFIT OBLIGATIONS

Year ending 31-March (Rupees in crore)
2020 33.12
2021 12.53
2022 16.93
2023 15.69
2024 15.00
Thereafter 74.11
(f) SENSITIVITY ANALYSIS

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions constant, would have affected
the defined benefit obligation by the amounts shown below.
(Rupees in crore)
Increase Decrease Increase Decrease
Discount Rate (1% movement) (12.56) 14.53 (13.77) 16.16
Future Salary Growth (1% movement) 14.41 (12.69) 15.97 (13.87)
(Rupees in crore)
(g) OTHER LONG-TERM BENEFITS:

The defined benefit obligations in respect of Leave Encashment Benefit to
employees, which are provided for but not funded 47.13 45.81
86
Gratuity is a defined benefit plan and the Company is exposed to the following risks:
Interest rate risk:
A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher
provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of
asset.
Salary Risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an
increase in the salary of the members more than assumed level will increase the plan's liability.
Investment Risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities,
and other debt instruments.
Asset Liability Matching Risk:
The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules,
1962, this generally reduces ALM risk.
Mortality risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any
longevity risk.
87
43. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT

(I). A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include 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.
(Rupees in crore)
Carrying Value Fair value
As at 31/03/2019 FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 Total
Cost Carrying
Value
Financial assets
Non-current
Investments in Subsidiaries, Associates and
Joint Venture - - 101.65 101.65 - - - -
Investments:
Quoted Equity Shares - 6,084.60 - 6,084.60 6,084.60 - - 6,084.60
Unquoted Equity Shares - 2.83 - 2.83 - - 2.83 2.83
Loans
Deposits - - 58.04 58.04 - - - -
Other Loans - - - - - - - -
Current
Current Investments (Mutual Funds) - - - - - - - -
Trade Receivables - - 2,248.21 2,248.21 - - - -
Cash and cash equivalents - - 250.53 250.53 - - - -
Other Balances with Banks - - 123.79 123.79 - - - -
Other Financial asset - - 50.10 50.10 - - - -
Derivative asset 5.57 - - 5.57 - 5.57 - 5.57
5.57 6,087.43 2,832.32 8,925.32 6,084.60 5.57 2.83 6,093.00
Financial liabilities
Non-current
Borrowings
Secured Redeemable Non-Convertible
Debentures (NCDs) - - 249.59 249.59 - - - -
Unsecured Borrowings - 548.95 548.95 - - - -
Other financial liabilities - - 182.72 182.72 - - - -
Current
Borrowings - - 1,713.32 1,713.32 - - - -
Trade and other payables - - 1,539.28 1,539.28 - - - -
Other financial liabilities:
Current maturities of long-term borrowings - - 322.99 322.99 - - - -
Derivative Liability 8.62 - - 8.62 - 8.62 - 8.62
Others - - 729.18 729.18 - - - -
8.62 - 5,286.03 5,294.65 - 8.62 - 8.62
88
43. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (continued)

(Rupees in crore)
Carrying value Fair value
Cost Carrying
Value
Financial assets
Non-current
Investments in Subsidiaries, Associates and
Joint Venture - - 95.04 95.04 - - - -
Investments
Loans
Deposits - - 69.99 69.99 - - - -
Other Loans - - - - - - - -
Current
Current Investments (Mutual Funds) - - - - - - - -
Cash and Cash Equivalents - - 288.42 288.42 - - - -
Other Balances with Banks - - 122.79 122.79 - - - -
Other Financial Assets - - 381.66 381.66 - - - -
0.39 6,475.51 3,310.85 9,786.75 6,470.81 0.39 4.70 6,475.90
Non-current
Borrowings
Secured Redeemable Non-Convertible
Debentures (NCDs) - - 498.96 498.96 - - - -
Secured Term Loans from Banks
and Financial Institutions - - - - - - - -
Unsecured Borrowings - - 295.23 295.23 - - - -
Other Financial Liabilities - - 186.25 186.25 - - - -
Current
Borrowings - - 1,429.72 1,429.72 - - - -
Trade payables - - 1,536.89 1,536.89 - - - -
Other Financial Liabilities:
Current maturities of long-term borrowings - - 429.10 429.10 - - - -
Derivative Liability 0.55 - - 0.55 - 0.55 - 0.55
Others - - 719.80 719.80 - - - -
0.55 - 5,095.95 5,096.50 - 0.55 - 0.55
B. Measurement of fair values

Valuation techniques and significant observable/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
Non-Current Investments - quoted The use of quoted market prices
Non-Current Investments - unquoted Net book value based on the last available financial statements
Forward contracts The fair value is determined using forward exchange rates at the
reporting dates.
89
FVTPL - Fair Value Through Profit and Loss

FVTOCI - Fair Value Through Other Comprehensive Income
(1) The fair value in respect of the unquoted equity investments cannot be reliably estimated. The Company has currently valued them using the cost
approach to arrive at their fair value and include in Level 3. The cost of unquoted investments approximate the fair value because there is a wide
range of possible fair value measurements and the cost represents estimate of fair value within that range.
(2) Carrying amounts of cash and cash equivalents, trade receivables, unbilled revenues, loans and trade and other payables as at 31-03-2019, and 31-03-
2018 approximate the fair values because of their short-term nature. Difference between carrying amounts and fair values of bank deposits, other
financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented.
(3) Assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses, advances paid and
certain other receivables amounting to Rs. 1,012.19 crore as at 31-03-2019 and Rs. 571.07crore as at 31-03-2018, respectively, are not included.
(4) Other liabilities that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain other
accruals amounting to Rs. 953.48 crore as at 31-03-2019 and Rs. 930.47 crore as at 31-03-2018, respectively, are not included.
The Company has exposure to the following risks arising from financial instruments:
▪ Credit risk ;
▪ Liquidity risk ; and
▪ Market risk
Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The
Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk
management policies. The committee reports regularly to the Board of Directors on its activities.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews
the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role
by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are
reported to the Audit Committee.
Level 3 fair values
Reconciliation of Level 3 fair values
The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values.
Paticulars (Rupees
in crore)
Opening Balance (01-04-2018) 4.70

Net change in fair value (unrealised) (1.87)
Purchases -
Closing Balance (31-03-2019) 2.83
90
(II). Liquidity risk

Liquidity risk is the risk that the Company will encounter, in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company’s reputation.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Company also monitors the level of expected cash inflows on trade and other receivables together with expected cash
outflows on trade and other payables.
Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.
(Rupees in crore)
Contractual cash flows
As at 31/03/2019 Carrying Total Less than 6-12 1-2 years 2-5 years More than
amount 6 months months 5 years
Non-derivative financial liabilities

Non-Current
Debentures 249.59 249.59 - - 249.59 - -
Interest-free Loans under the Sales Tax
Deferral Scheme of Maharashtra State
Government 19.11 19.11 - - 15.41 3.70 -
Fixed Deposits 529.84 529.84 - - 529.84 - -
Other Non-current Financial Liabilities 182.72 182.72 - - 182.72 - -
Current
Secured Borrowings 512.78 512.78 427.78 85.00 - - -
Unsecured Borrowings 991.50 991.50 962.78 28.72 - - -
Short term loans from banks 120.00 120.00 120.00 - - - -
Trade Payables 1,539.28 1,539.28 1,539.28 - - - -
Other Current Financial Liabilities 1,052.17 1,052.17 1,038.18 13.99 - - -
Derivative Liability 8.62 8.62 8.62
Acceptances 89.04 89.04 89.04 - - - -


Non-Current
Debentures 498.96 498.96 - - 249.54 249.42 -
Interest-free Loans under the Sales Tax
Deferral Scheme of Maharashtra State
Government 29.65 29.65 - 9.79 19.86
Fixed Deposits 265.58 265.58 - - 265.58 - -
Other Non-current Financial Liabilities 186.25 186.25 - - 186.25 - -
Current
Secured Borrowings 826.47 826.47 746.47 80.00 - - -
Unsecured Borrowings 243.37 243.37 243.37 - - - -
Short term loans from banks 225.01 225.01 225.01 - - - -
Trade Payables 1,536.89 1,536.89 1,536.89 - - - -
Other Current Financial Liabilities 1,148.90 1,148.90 1,148.90 - - - -
Derivative Liability 0.55 0.55 0.55 - - - -
Acceptances 134.87 134.87 134.87 - - - -
91
(III). Market risk

The Company is exposed to market risks such as price, interest rate fluctuation and foreign currency rate fluctuation risks, capital
structure and leverage risks.
A. Currency risk
The Company is exposed to currency risk on account of its borrowings and other payables/receivables in foreign currency. The functional
currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, mostly with a
maturity of less than one year from the reporting date.
The Company does not use derivative financial instruments for trading or speculative purposes.
Exposure to currency risk
The currency profile of financial assets and financial liabilities as at 31st March, 2019 and 31st March, 2018 are as below:
Currency Amount in Foreign Currency Equivalent amount (Rupees in crore)
As at 31/03/2019 As at 31/03/2018 As at 31/03/2019 As at 31/03/2018

Financial assets
Trade and other receivables USD 1,88,16,193 2,58,21,984 130.13 168.29
EURO 4,73,924 6,13,329 3.68 4.96
GBP 3,51,512 2,73,363 3.18 2.52
OTHERS 13,86,804 14,81,199 6.85 8.18
143.84 183.95
Hedged Exposures USD 27,41,364 46,72,818 (18.96) (30.46)
124.88 153.49
Trade and other payables USD 4,66,07,025 8,11,14,269 322.33 528.66
(includes foreign currency EURO 52,80,584 73,56,128 41.01 59.44
borrowings) GBP 1,32,828 7,22,332 1.20 6.67
OTHERS 68,64,234 7,66,75,566 2.55 8.26
367.09 603.03
Hedged Exposures USD 3,40,88,637 3,96,68,871 (235.76) (258.54)
EURO - 5,15,753 - (4.17)
131.33 340.32
The following significant exchange rates have been applied during the year.
Year-end spot rate
(Rupees) 31-03-2019 31-03-2018
USD 1 69.16 65.18
EUR1 77.67 80.81
GBP1 90.53 92.28
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars at 31st March would have affected the
measurement of financial instruments denominated in US dollars and affected equity and 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.
As at 31/03/2019 As at 31/03/2018
Profit or (loss) Profit or (loss)
Effect in Rs. Crore Strengthening Weakening Strengthening Weakening
USD - 3% movement (0.74) 0.74 3.97 (3.97)
EUR - 3% movement 1.12 (1.12) 1.51 (1.51)
GBP - 3% movement (0.06) 0.06 0.12 (0.12)
92
B. Interest rate risk

The Company’s exposure to market risk for changes in interest rates relates to fixed deposits
and borrowings from financial institutions. It is the Company’s policy to obtain the most
favourable interest rate available, and to retain flexibility of fund-raising options in future
between fixed and floating rates of interest, across maturity profiles and currencies.
E
Company’s interest rate risk arises from borrowings. Borrowings issued at floating rates
exposes to fair value interest rate risk. The interest rate profile of the Company’s interest-
bearing financial instruments as reported to the management of the Company is as follows:
Rupees in Crore
As at As at
Nominal amount 31/03/2019 31/03/2018
Fixed-rate instruments
Financial liabilities: Long-term 798.54 794.19
Financial liabilities: Short-term 1,713.32 1,427.17
2,511.86 2,221.36
Variable-rate instruments
Financial liabilities: Long-term - -
Financial liabilities: Short-term - 2.55
- 2.55
Total 2,511.86 2,223.91
Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates 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.
Profit or loss
(Rupees in crores) 100 bp increase 100 bp decrease
As at 31/03/2018
Variable-rate instruments (0.03) 0.03
Cash flow sensitivity (net) (0.03) 0.03
Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or 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.
93
C. CREDIT RISK
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company's receivables from customers and
investments in debt securities.
The carrying amount of financial assets represents the maximum credit exposure.
Trade receivables
Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To
manage this, the businesses periodically assesses the financial reliability of customers, taking into account the
financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable.
The Company establishes an allowance for doubtful receivables that represents its estimate of expected losses in
respect of trade and other receivables.
The Company's exposure to customers is diversified and no single customer contributes to more than 10% of
outstanding accounts receivable and unbilled revenue as at 31st March, 2019 and 31st March, 2018.
Impairment
The ageing of trade receivables that were not impaired was as follows:
(Rupees in crore)
As at As at
31/03/2019 31/03/2018
Neither past due nor impaired 1,645.93 1,385.88
More than 6 months and less than 1 year 110.28 229.75
More than 1 year and less than 3 years 232.11 448.45
More than 3 years 259.89 288.87
2,248.21 2,352.95
Management believes that the unimpaired amounts that are past due by more than 6 months are still collectible in
full, based on historical payment behaviour and extensive analysis of customer credit risk, on a case to case basis,
with reference to the customer's credit quality and prevailing market conditions. Based on past experience, the
Company does not expect any material loss on these receivables and hence no allowance is deemed necessary on
account of Expected Credit Loss (ECL).
The movement in the allowance for doubtful receivables and contract assets during the year was as follows:
(Rupees in crore)
Collective impairments
Balance as at 31/03/2018 165.62
Allowance for doubtful receivables recognised during the year ended 31st March, 2019. 9.77
Balance as at 31/03/2019 175.39
Bad debts written off during the year ended 31st March, 2019. 12.12
Allowance for doubtful advances recognised during the year ended 31st March, 2019. 4.66
Loans and advances are monitored by the Company on a regular basis and these are neither past due nor impaired.
Cash and cash equivalents

The Company maintains its cash and cash equivalents with credit worthy banks and financial institustions and
reviews it on ongoing basis. The credit worthiness of such banks and financial institutions is evaluated by the
management on an ongoing basis and is considered to be good.
94
44. CAPITAL MANAGEMENT
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level of
dividends to ordinary shareholders.
The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position.
The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is
defined as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents. The
Company's adjusted net debt to equity ratio for two years is given below:
(Rupees in crore)
As at As at
31/03/2019 31/03/2018
Non-Current Borrowings 798.54 794.19

Current Borrowings 1,713.32 1,429.72
Current Maturity of long-term borrowings 322.99 429.10
Gross Debt 2,834.85 2,653.01
Less : Cash and cash equivalent 250.53 288.42
Less : Other balances with banks 123.79 122.79
Adjusted net debt 2,460.53 2,241.80
Total equity 9,206.47 9,392.29

Adjusted net debt to equity ratio 0.27 0.24
95
45. ADDITIONAL INFORMATION ABOUT BUSINESS SEGMENTS

(Rupees in crore)
Consumer Industrial Others Corporate/ Total Company Consumer Industrial Others Corporate/ Total Company
Durables Products Unallocated Durables Products Unallocated
REVENUE
Domestic Sales 6,781.33 2,810.61 508.25 - 10,100.19 6,161.87 2,257.80 537.75 - 8,957.42
Export Sales 246.59 513.07 7.20 - 766.86 177.24 479.30 0.19 - 656.73
SALE OF PRODUCTS AND SERVICES (Gross) 7,027.92 3,323.68 515.45 - 10,867.05 6,339.11 2,737.10 537.94 - 9,614.15
Inter-Segment Transfers 11.76 111.52 3.24 - 126.52 58.17 69.38 2.22 - 129.77
Other Operating Revenue 87.99 94.11 2.40 - 184.50 88.65 91.54 2.42 - 182.61
SEGMENT REVENUE 7,127.67 3,529.31 521.09 - 11,178.07 6,485.93 2,898.02 542.58 - 9,926.53
Less: Inter-Segment Revenue (126.52) (129.77)
TOTAL REVENUE 11,051.55 9,796.76
RESULTS FROM OPERATIONS

Profit before Corporate / Common Expenses,
660.20 238.90 264.19 - 1,163.29 674.56 195.57 221.25 - 1,091.38
Interest, Depreciation and Amortization
gc
Less: Non Cash Expenses:
Depreciation 115.36 69.55 30.70 - 215.61 104.87 66.28 30.28 - 201.43
SEGMENT RESULTS (Profit before Corporate /
544.84 169.35 233.49 - 947.68 569.69 129.29 190.97 - 889.95
Common Expenses and Interest)
Add: Income from Dividends 92.76 56.60
Total Profit/(Loss) on Sale of Fixed Assets
(0.57) 9.19
(Net)
Total Profit on Sale of Investments (Net) 1.63 10.84
1,041.50 966.58
Add/(Less): Interest (Net of Interest Income) (147.10) (163.63)
Diminution in value of Investments - (38.54)
Other Unallocated Corporate / Common
(538.52) (407.55)
Expenses
Provision for Taxes 126.62 124.85
PROFIT / (LOSS) FOR THE YEAR 229.26 232.01
CAPITAL EMPLOYED (at the end of the year)

k+fa Segment Assets 3,883.65 2,535.89 121.10 2,848.16 9,388.80 3,570.62 2,342.66 121.00 2,945.11 8,979.39
o Segment Liabilities 1,240.55 1,092.62 48.30 960.38 3,341.85 1,318.28 870.85 49.44 1,065.76 3,304.33
SEGMENT CAPITAL EMPLOYED (Segment Assets -
nda 2,643.10 1,443.27 72.80 1,887.78 6,046.95 2,252.34 1,471.81 71.56 1,879.35 5,675.06
Segment Liabilities)
Investments 6,189.08 6,570.55
Borrowings (2,846.84) (2,667.07)
Other Financial Liabilities (Non-current) (182.72) (186.25)
TOTAL CAPITAL EMPLOYED (NET ASSETS) (as per
9,206.47 9,392.29
Balance Sheet)
CAPITAL EXPENDITURE
TOTAL CAPITAL EXPENDITURE (as per Balance Sheet) 269.56 87.84 5.00 244.97 607.37 152.15 95.77 4.94 214.30 467.16
(a) Identification of Business Segments

The Indian Accounting Standard 108 (Ind AS-108) on “Segment Reporting” requires disclosure of segment information to facilitate better understanding of
the performance of an enterprise’s business operations. The Company has identified Business Segments to comply with the operating segment disclosures
as per Ind AS-108, considering the organization structure, internal financial reporting system, and the risk-return profiles of the businesses. The Company’s
organisation structure and management processes are designated to support effective management of multiple businesses while retaining focus on each
one of them.
The Consumer Durables segment includes Furniture and Interiors, Office Equipment, Home Appliances, Locks and Security Equipment.
The Industrial Products segment includes Process Plant and Equipment, Toolings, Special Purpose Machines, Precision Components/Engineering, Electricals
and Electronics, Electric Motors, Storage Solutions and Material Handling Equipment. Estate leasing, Property Development and Ready-mix Concrete
operations are included under the Others segment.
The Company’s exports constitute less than 10% of its total revenue. All of the Company’s manufacturing operations are conducted in India. The commercial
risks and returns involved on the basis of geographic segmentation are relatively insignificant. Accordingly, segment disclosures based on geographic
segments are not considered relevant.
(b) Segment Revenue, Results, Assets and Liabilities
Segment revenue and results are arrived at based on amounts identifiable to each of the segments. Inter-segment transfers are valued at cost or market-
based prices, as may be negotiated between the segments with an overall optimization objective for the Company. Other unallocated expenses include
corporate expenses, as well as expenses incurred on common shared-services provided to the segments. Segment assets include all operating assets used by
the business segment and consist mainly of net fixed assets, debtors and inventories. Segment liabilities primarily include creditors and advances from
customers. Unallocated assets mainly relate to the factory, administrative, employee welfare, and marketing infrastructure at Vikhroli, Mumbai and at up-
country establishments, not directly identifiable to any business segment. Liabilities which have not been identified between the segments are shown as
unallocated liabilities.
96
46. SCHEMES OF AMALGAMATION
Amalgamation of wholly-owned subsidiary India Circus Retail Private Ltd. with the Company:
(a) A Scheme of Amalgamation ("the Scheme") of India Circus Retail Private Ltd. 'ICRPL' with the Company with effect from 1st April 2017,
'appointed date' was sanctioned by the National Company Law Tribunal (“NCLT”), Mumbai Bench, on 30th, August, 2018 and certified
copies of the Order of the NCLT sanctioning the Scheme were received. The entire undertaking of erstwhile ICRPL stands transferred to
and vested in the Company as a going concern and ICRPL, without any further act, stands dissolved without winding up. ICRPL was mainly
engaged in e-commerce and offline retail business of home décor and life style products . The amalgamation was accounted for as
specified in the Scheme. The asset, liabilities and reserves of ICRPL have been taken over at their carrying values and adjusted in the
financial statements on 1st April, 2016, since the entities are under common control.
(b) The details of adjustments made in the accounts pursuant to the Scheme are set out below:
st
Value of Net Assets of India Circus Retail Private Ltd. taken over as at 1 April, 2017 (See Notes below):
Rupees in crore
Total Value of Net Assets taken over [(A) – (B)] (13.99)
Adjusted against: Retained Earnings 22.17
8.18
Less: Book Value of equity shares held by the Company in ICRPL written off (0.20)
Less: Book Value of preference shares held by the Company in ICRPL written off (23.00)
As reduced by the amount considered as long term borrowings above 15.21 (7.79)
Adjusted as Capital Reserve under Business Combination 0.19
(c) All assets and liabilities, have been recorded in the books of the Company at the values appearing in the books of ICRPL as at the closing
balance sheet as at 31st March, 2017.
(d) With effect from 1st April, 2017, all debts, liabilities, duties and obligations of ICRPL as at the close of business on the date preceding the
aforesaid date, whether or not provided in the books of ICRPL, and all liabilities which arise or accrue on or after 1st April, 2017 shall be
deemed to be the debts, liabilities, duties and obligations of the Company.
(e) Pending completion of the relevant formalities for transfer of some of the assets and liabilities, acquired pursuant to the Scheme, in the
name of the Company, such asset and liabilities continue to be in the name of ICRPL.
(f) The amalgamation of the wholly-owned subsidiary does not entail issue of shares.
97
47. RELATED PARTY DISCLOSURES
(a) NAMES OF RELATED PARTIES AND NATURE OF RELATIONSHIPS:

(i) Subsidiaries (including step-down subsidiaries):
A. Subsidiaries (with the Company's direct equity holdings in excess of 50%):
1. Godrej Infotech Limited
2. Godrej (Singapore) Pte. Limited (a wholly-owned subsidiary incorporated in Singapore)
3. Veromatic International BV (a wholly-owned subsidiary incorporated in the Netherlands)
4. Godrej Americas Inc. (a wholly-owned subsidiary incorporated in the USA)
5. Sheetak Inc. (incorporated in USA)
The following companies are step-down subsidiaries (where the Company's subsidiaries listed above,
directly and/or indirectly through one or more subsidiaries, hold more than one-half of equity share capital):
B. Subsidiaries of Godrej Infotech Limited:
1. Godrej Infotech Americas Inc. (a wholly-owned subsidiary incorporated in North Carolina, USA)
2. Godrej Infotech (Singapore) Pte. Ltd. (a wholly-owned subsidiary incorporated in Singapore)
3. LVD Godrej Infotech NV (incorporated in Belgium)
C. Subsidiaries of Godrej (Singapore) Pte. Ltd.:
1. JT Dragon Pte. Ltd. (Incorporated in Singapore)
2. Godrej (Vietnam) Co. Ltd. (Incorporated in Vietnam) (a wholly owned subsidiary of JT Dragon Pte. Ltd.)
D. Joint Ventures:
1. Godrej Consoveyo Logistics Automation Ltd. (formerly Godrej Efacec Automation & Robotics Ltd.)
2. Godrej & Khimji (Middle East) LLC (incorporated in Sultanate of Oman) [a Joint Venture of Godrej (Singapore) Pte. Limited]
3. Godrej UEP (Singapore) Pte. Limited (incorporated in Singapore, a Joint venture between Godrej (Singapore) Pte. Limited
and Urban Electric Power Inc.)
4. Godrej UEP Pvt. Limited [a wholly-owned subsidiary of Godrej UEP (Singapore) Pte. Limited]
(ii) Other Associates and Limited Liability Partnerships:

1. Godrej & Boyce Enterprises LLP (applied for closure)
2. Godrej Property Developers LLP
3. Future Factory LLP
4. Urban Electric Power Inc.
98
(iii) Key Managerial Personnel:

(a) Whole-time Directors:
1. Mr. J. N. Godrej, Chairman & Managing Director
2. Mr. V. M. Crishna, Executive Director
3. Mr. A. G. Verma, Executive Director & President
4. Mrs. N. Y. Holkar Executive Director - Corporate Affairs
(b) Non-Executive Directors:
1. Mr. A. B. Godrej
2. Mr. N. B. Godrej
3. Mr. N. J. Godrej
4. Mr. K. N. Petigara
5. Mr. P. P. Shah
6. Ms. A. Ramchandran
7. Mr. K. M. Elavia
(c) Others:
1. Mr. P. E. Fouzdar, Executive Vice President and Company Secretary
2. Mr. P. K. Gandhi, Chief Financial Officer
(d) Close members of the family of Key Management Personnel:

1. Mrs. P. J. Godrej (spouse of Mr. J. N. Godrej)
2. Mr. N. J. Godrej (son of Mr. J. N. Godrej)
3. Ms. R. J. Godrej (daughter of Mr. J. N. Godrej)
4. Mrs. S. G. Crishna (spouse of Mr. V. M. Crishna)
5. Mrs. F. C. Bieri (daughter of Mr. V. M. Crishna)
6. Mrs. N. Y. Holkar (daughter of Mr. V. M. Crishna)
(iv) Companies under common control:

1. Godrej Industries Limited
2. Godrej Agrovet Limited
3. Godrej Consumer Products Limited
4. Godrej Properties Limited
5. Godrej Seeds and Genetics Limited
(v) Post Employment Benefit Trust with whom the Company has transactions:
1. Godrej and Boyce Manufacturing Co. Ltd. Employees' Provident Fund
2. Godrej and Boyce Manufacturing Co. Ltd. Employees' Gratuity Fund
3. Godrej and Boyce Manufacturing Co. Ltd. Managerial Superannuation Fund
(b) PARTICULARS OF TRANSACTIONS WITH RELATED PARTIES: (Rupees in crore)

Subsidiaries Associates / Subsidiaries Associates /
Common Common
Ownership Ownership
[Item (a)(i)] [Items (a)(ii), (iii), [Item (a)(i)] [Items (a)(ii), (iii),
(iv) and (v)] (iv) and (v)]
(i) Transactions carried out with the related parties,

referred to in Items (a) above:
(a) Purchase of Materials/Finished Goods/Services 62.12 31.02 50.26 14.74
(b) Sales, Services Rendered and Other Income 6.75 35.67 5.48 40.41
(c) Dividends Received 0.24 90.01 0.23 45.01
(d) Common Expenses shared with Subsidiaries 3.31 - 3.00 -
(e) Investments purchased 6.26 - - 3.25
(f) Loans to Associate Company - 13.21 - -
(g) Trade and other Receivables 0.77 15.48 1.23 12.90
(h) Trade and other Payables 14.79 1.90 2.92 3.85
(i) Bank Guarantees given against counter-guarantees
given by the Company, outstanding at year-end 0.22 - 0.22 -
(j) Corporate Guarantees given to bankers,
outstanding at year-end 147.75 80.01 86.39 61.92
99
(Rupees in crore)
(ii) Transactions carried out with Mr. J. N. Godrej, Chairman & Managing Director
(a) Dividends paid
Individually 0.00 7.36
As a Trustee of The Raika Godrej Family Trust 2.08 8.04
As a Trustee of JNG Family Trust 6.54 -
As a Trustee of Raika Lineage Trust 5.07 -
As a Trustee of Navroze Lineage Trust 5.07 -
(b) Unsecured Deposits outstanding 30.00 17.00
(c) Interest paid on Deposits taken 1.74 1.30
(iii) Transactions carried out with Mr. V. M. Crishna, Executive Director:
(a) Dividends paid * 0.00 0.00
(b) Unsecured Deposits outstanding - 7.00
(iv) Transactions carried out with Ms. N. Y. Holkar, Executive Director:
(a) Dividends paid 2.08 7.74
(v) (a) Remuneration paid/payable to Key Managerial Personnel:
(i) Whole-time Directors 17.14 15.66
(ii) Other Key Managerial Personnel 3.94 3.59
(v) (b) Retiral benefits paid/payable to Key Managerial Personnel:
(vi) Transactions carried out with the relatives of Whole-time Directors:
(a) Mrs. P. J. Godrej:
Remuneration 0.27 0.27
Dividend paid 0.01 0.00
Unsecured Deposits outstanding 2.00 3.00
Interest paid on Deposits taken 0.19 0.14
(b) Ms. R. J. Godrej
Interest paid on Deposits taken 2.61 1.63
(c) Mrs. S. G. Crishna:
Dividend paid
As a Trustee of SGC Family Trust 7.06 -
As a Trustee of FVC Family Trust 4.81 -
As a Trustee of NVC Family Trust 4.81 -
(d) Mrs. F. C. Bieri:
(e) Mr. N. J. Godrej:
(vii) Transactions with Non-Executive Directors:

Commission 0.53 0.53
Sitting Fees 0.53 0.50
Others - -
(viii) Contribution to post-employment benefit plans:

(a) Advance received and repaid to the Company by:
1. Godrej and Boyce Manufacturing Co. Ltd. Employees' Provident Fund 4.19 13.13
2. Godrej and Boyce Manufacturing Co. Ltd. Employees' Gratuity Fund - -
3. Godrej and Boyce Manufacturing Co. Ltd. Managerial Superannuation Fund - 0.71
(b) Towards Employer's contribution:
2. Godrej and Boyce Manufacturing Co. Ltd. Employees' Gratuity Fund 19.09 16.99
3. Godrej and Boyce Manufacturing Co. Ltd. Managerial Superannuation Fund 7.83 7.49
100
(Rupees in crore)
(c) Balance payable by the Company to:

48. DISCLOSURE IN RESPECT OF JOINT VENTURES

Pursuant to the Indian Accounting Standard (Ind AS 28) – Investments in Associates and Joint Ventures, the disclosures relating to the
Company’s Indian Joint Venture (JV) Godrej Consoveyo Logistics Automation Limited, (formerly, Godrej Efacec Automation and Robotics
Limited) are as follows:
(a) The financial interest of the Company in the JV is by way of equity participation with Consoveyo S.A. (formerly, Efacec Handling Solutions
S.A.) in the ratio of 49:51
(b) The aggregate amounts of assets, liabilities, income and expenses related to the Company’s share in the JV.
(Rupees in crore)
(i) Assets at close 28.70 37.12

(ii) Liabilities at close 24.73 29.65
(iii) Income 26.48 50.26
(iv) Expenses 31.91 53.52
(c) The JV does not have any contracts remaining to be executed on Capital Account or any contingent liabilities at close.
49. DISCLOSURE IN RESPECT OF LEASES

(a) The Company’s significant leasing arrangements, where the Company is a lessee, are in respect of operating leases for motor cars, laptop
computers and premises (office, godown, show-room, retail store, residential, etc.) occupied by the Company. The aggregate lease
rentals payable by the Company are charged to the Statement of Profit and Loss as Rent [Note 33(i)], Establishment and Other Expenses
[Note 33(j)] and Motor Car and Lorry Expenses [Note 33(l)].
The total charge to the Statement of Profit and Loss is Rs. 25.94 crore (Previous Year: Rs. 25.86 crore).
The future minimum lease payments under non-cancellable operating leases in respect of premises, motor cars and laptop computers,
due within a period of one year are estimated at Rs. 13.53 crore (as at 31-3-2018: Rs. 16.53 crore), those due later than one year but not
later than five years at Rs. 10.11 crore (as at 31-3-2018: Rs. 9.01 crore), and those due later than five years at Nil (as at 31-3-2018: Nil).
(b) Lease income from operating leases where the Company is a lessor, is recognised in the Statement of Profit and Loss. Initial direct costs
incurred specifically to earn revenues from operating leases of fixed assets are charged to the Statement of Profit and Loss as incurred.
These assets pertain to land, commercial/residential premises, forklifts and vending machines given on lease on varying tenure and other
terms.
In respect of assets given on operating leases, the gross book value and the accumulated depreciation at the end of the year, aggregate
to Rs. 399.33 crore and Rs. 36.79 crore, respectively (as at 31-3-2018: Rs. 398.82 crore and Rs. 27.58 crore, respectively); and the
depreciation charge for the year corresponding to the period of lease rentals, is estimated at Rs. 9.21 crore (previous year: Rs. 9.19
crore).
The future minimum lease rentals receivable under non-cancellable operating leases within a period of one year are estimated at Rs.
92.38 crore (as at 31-3-2018: Rs. 78.36 crore), those due later than one year but not later than five years at Rs. 147.76 crore (as at 31-3-
2018: Rs. 73.13 crore), and those due later than five years at Rs. Nil (as at 31-3-2018: Rs. Nil).
101
ENCLOSURE 1
Referred to in paragraph 1 of the

Directors' Report
CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31st March, 2019
102
Established 1897
(Incorporated with limited liability on 3rd March, 1932 under the Indian Companies Act, 1913)
CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH, 2019
CORPORATE INFORMATION
Board of Directors
JAMSHYD N. GODREJ, Chairman & Managing Director
ADI B. GODREJ
NADIR B. GODREJ
VIJAY M. CRISHNA, Executive Director
KAVAS N. PETIGARA
PRADIP P. SHAH
Ms. ANITA RAMACHANDRAN
ANIL G. VERMA, Executive Director & President
KEKI M. ELAVIA
Ms. NYRIKA HOLKAR, Executive Director - Corporate Affairs
NAVROZE J. GODREJ
Company Secretary Chief Financial Officer

PERCY E. FOUZDAR PURVEZ K. GANDHI
Auditors
DELOITTE HASKINS & SELLS LLP
Bankers
CENTRAL BANK OF INDIA ICICI BANK LTD.
UNION BANK OF INDIA AXIS BANK LTD.
STATE BANK OF INDIA HDFC BANK LTD.
CITIBANK N.A. KOTAK MAHINDRA BANK LTD.
EXPORT-IMPORT BANK OF INDIA
Registered Office and Head Office
Telephone: (022) 6796 5656, 6796 5959; Fax: (022) 6796 1518
E-mail: info@godrej.com | Website: http://www.godrejandboyce.com
Corporate Identity Number (CIN)

U28993MH1932PLC001828
INDEPENDENT AUDITOR'S REPORT
To
The Members Of
Report On The Consolidated Financial Statements

We have audited the accompanying Consolidated Financial Statements of Godrej & Boyce Manufacturing Company Limited
(hereinafter referred to as “the Parent”) and its subsidiaries (the Parent and its subsidiaries together referred to as “the Group”), which
includes Group’s share of profit / loss in its associates and its joint ventures, comprising the Consolidated Balance Sheet as at 31st
March, 2019, the Consolidated Statement of Profit and Loss (including other comprehensive income), the Consolidated Statement of
Changes in Equity and the Consolidated Statement of Cash Flows, for the year then ended, and a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as "the Consolidated Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of
reports of the other auditors on separate financial statements / financial information of the subsidiaries, associates and joint ventures
referred to in the Other Matters section below, the aforesaid Consolidated Financial Statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended
(‘Ind AS’), and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at 31st
March, 2019, and their consolidated profit, their consolidated total comprehensive loss, their consolidated changes in equity and their
consolidated cash flows for the year ended on that date.
Basis for Opinion

We conducted our audit of the Consolidated Financial Statements in accordance with the Standards on Auditing specified under
section 143 (10) of the Act (“SAs”). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for
the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are
relevant to our audit of the Consolidated Financial Statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that
the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Financial
Statements.
Information Other than the Financial Statements and Auditor’s Report Thereon (“Other Information”)
The Parent’s Board of Directors is responsible for the other information. The other information comprises the information included in
the Board’s Report and its annexures but does not include the Consolidated Financial Statements, Standalone Financial Statements
and our auditor’s reports thereon.
Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information, compare
with the financial statements of the subsidiaries, associates and joint ventures audited by the other auditors, to the extent it relates to
these entities and, in doing so, place reliance on the work of the other auditors and consider whether the other information is
materially inconsistent with the Consolidated Financial Statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. Other information so far as it relates to the subsidiaries, associates and joint ventures, is
traced from their financial statements audited by other auditors.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are
required to report that fact. We have nothing to report in this regard.
104
Management’s Responsibility for the Consolidated Ind AS Financial Statements

The Parent’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of
these Consolidated Financial Statements that give a true and fair view of the consolidated financial position, consolidated financial
performance including other comprehensive income, consolidated changes in equity and consolidated cash flows of the Group
including its associates and joint ventures in accordance with the Ind AS and other accounting principles generally accepted in India.
The respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group
and its associates and its joint ventures 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 financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of
preparation of the Consolidated Financial Statements by the Directors of the Parent, as aforesaid.
In preparing the Consolidated Financial Statements, the respective Board of Directors of the companies included in the Group and of
its associates and joint ventures are responsible for assessing the ability of the Group and of its associates and joint ventures to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the management either intends to liquidate or cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for
overseeing the financial reporting process of the Group and of its associates and joint ventures.
Auditor’s Responsibility
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated
Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
 Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
 Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Parent, subsidiary companies, associate companies and joint venture companies incorporated in India has adequate
internal financial controls system in place and the operating effectiveness of such controls.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of
the Group and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the Group and its associates and joint ventures to cease
to continue as a going concern.
 Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and
whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
105
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group and its
associates and joint ventures to express an opinion on the Consolidated Financial Statements. We are responsible for the
direction, supervision and performance of the audit of the financial statements of the Parent included in the consolidated
financial statements of which we are the independent auditors. For the other entities included in the consolidated financial
statements, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision
and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the Consolidated Financial Statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Consolidated Financial Statements.
We communicate with those charged with governance of the Parent and such other entities included in the Consolidated Financial
Statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Other Matters
(a) We did not audit the financial statements / financial information of ten subsidiaries, whose financial statements / financial
information reflect total assets of Rs. 330.26 crores as at 31st March, 2019, total revenues of Rs. 320.06 crores and net cash
inflows amounting to Rs. 13.19 crores for the year ended on that date, as considered in the Consolidated Financial Statements.
The Consolidated Financial Statements also include the Group's share of net loss of Rs. 17.95 crores for the year ended 31st
March, 2019, as considered in the Consolidated Financial Statements, in respect of four associates and two joint ventures, whose
financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports
have been furnished to us by the Management and our opinion on the Consolidated Financial Statements, in so far as it relates to
the amounts and disclosures included in respect of these subsidiaries, associates and joint venture, and our report in terms of
Section 143(3) of the Act, in so far as it relates to the aforesaid subsidiaries, associates and joint ventures is based solely on the
reports of the other auditors.
Nine of these subsidiaries, three associates and one joint venture are located outside India whose financial statements and other
financial information have been prepared in accordance with accounting principles generally accepted in their respective
countries and which have been audited by other auditors under generally accepted auditing standards applicable in their
respective countries. The Parent’s management has converted the financial statements of such subsidiaries, associates and joint
ventures located outside India from accounting principles generally accepted in their respective countries to accounting principles
generally accepted in India. We have audited these conversion adjustments made by the Parent’s management. Our opinion in so
far as it relates to the balances and affairs of such subsidiaries, associates and joint venture located outside India is based solely
on the report of other auditors and the conversion adjustments prepared by the management of the Parent and audited by us.
(b) We did not audit the financial statements / financial information of one subsidiary, whose financial statements / financial
information reflect total assets of Rs. 0.06 crores as at 31st March, 2019, total revenues of Rs. Nil and net cash inflows amounting
to Rs. Nil for the year ended on that date, as considered in the Consolidated Financial Statements. The Consolidated Financial
Statements also include the Group’s share of profit / (loss) of Rs. Nil for the year ended 31st March, 2019, as considered in the
Consolidated Financial Statements, in respect of one associate whose financial statements / financial information have not been
audited by us. These financial statements / financial information are unaudited and have been furnished to us by the
Management and our opinion on the Consolidated Financial Statements, in so far as it relates to the amounts and disclosures
included in respect of this subsidiary and this associate, is based solely on such unaudited financial statements / financial
information. In our opinion and according to the information and explanations given to us by the Management, these financial
statements / financial information are not material to the Group.
Our opinion on the Consolidated Financial Statements above and our report on Other Legal and Regulatory Requirements below, is not
modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the
financial statements / financial information certified by the Management.
106
Report On Other Legal And Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of the other auditors on separate
financial statements and the other financial information of the subsidiary companies, associate companies and joint venture
companies incorporated in India, referred in the Other Matters paragraph above, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid Consolidated Financial Statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Consolidated Financial
Statements have been kept so far as it appears from our examination of those books and reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the
Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the Consolidated Financial
Statements.
d) In our opinion, the aforesaid Consolidated Financial Statements comply with the Ind AS prescribed under section 133 of the Act.
e) On the basis of the written representations received from the Directors of the Parent as on 31st March, 2019 taken on record by
the Board of Directors of the Parent and the reports of the other auditors of its subsidiary companies, associate companies and
joint venture companies incorporated in India, none of the Directors of the Parent, subsidiary companies, associate companies
and joint venture companies incorporated in India is disqualified as on 31st March, 2019 from being appointed as a director in
terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our separate Report in “Annexure A”, which is based on the auditor’s reports of the Parent, subsidiary
companies, associate companies and joint venture companies incorporated in India. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of internal financial controls over financial reporting of those companies, for the
reasons stated therein.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16)
of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Parent to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to
us:
i. The Consolidated Financial Statements disclose the impact of pending litigations on the consolidated financial position of the
Group, its associates and joint ventures.
ii. The Group has made provision in the Consolidated Financial Statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Parent and its subsidiary companies, associate companies and joint venture companies incorporated in India.

Shyamak R Tata
Partner
UDIN: 19038320AAAAAF5802
Mumbai
20th August, 2019
107
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”) of Godrej & Boyce Manufacturing Company Limited.
In conjunction with our audit of the Consolidated Financial Statements of the Company as of and for the year ended 31st March, 2019,
we have audited the internal financial controls over financial reporting of Godrej & Boyce Manufacturing Company Limited
(hereinafter referred to as “the Parent”) and its subsidiary companies, its associate companies and joint venture companies
incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Parent, its subsidiary companies, its associate companies and joint venture companies
incorporated in India, are responsible for establishing and maintaining internal financial controls based on “the internal control over
financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“the
Guidance Note”)”. These responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective
company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of
the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary
companies, its associate companies and its joint ventures, which are companies incorporated in India, based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the
Act, to the extent applicable to an audit of internal financial controls. The Guidance Note and those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the Consolidated Financial Statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary
companies, associate companies and joint venture companies incorporated in India, in terms of the reports of the other auditors
referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal
financial controls system over financial reporting of the Parent, its subsidiary companies, its associate companies and its joint venture
companies incorporated in India.
Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could
have a material effect on the financial statements.
108
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the
internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Parent and based on the consideration
of the reports of the other auditors referred to in the Other Matter paragraph below, the Parent and its subsidiary companies,
associate companies and joint venture companies incorporated in India have, in all material respects, maintained adequate internal
financial controls over financial reporting as of 31st March, 2019, based on the criteria for internal financial control over financial
reporting established by the respective companies considering the essential components of internal control stated in the Guidance
Note.
Other Matter
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls
over financial reporting insofar as it relates to its subsidiary companies, associate companies and joint venture companies incorporated
in India, is based solely on the corresponding reports of the statutory auditors of such companies incorporated in India.

Shyamak R Tata
Partner
Mumbai
20th August, 2019
109

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2019
(Rupees in crore)
Note As at As at
31-03-2019 31-03-2018
ASSETS
(1) NON-CURRENT ASSETS
(a) Property, Plant and Equipment 2A 2,048.80 1,910.97
(b) Capital Work-in-progress 2A 797.39 533.53
(c) Investment Property 2B 362.54 371.24
(d) Intangible Assets 2A 52.68 20.99
(e) Intangible Assets under Development 2A 6.40 3.04
3,267.81 2,839.77
(f) Financial Assets
(i) Investments
(a) Investments in associates 3A 16.39 28.81
(b) Investments in joint ventures 3A 4.43 8.64
(c) Other Non-Current Investments 3B 6,087.43 6,475.51
(ii) Loans 4 58.65 70.53
6,166.90 6,583.49
(g) Deferred Tax Assets (Net) 5 4.04 41.78
(h) Other Non-current Assets 6 54.94 56.92
9,493.69 9,521.96
(2) CURRENT ASSETS
(a) Inventories 7 2,402.42 2,358.04
(b) Financial Assets
(i) Investments 8 13.26 14.62
(ii) Trade Receivables 9 2,282.29 2,379.19
(iii) Cash and Cash Equivalents 10 A 315.93 318.06
(iv) Bank Balances other than (iii) above 10 B 131.41 147.87
(v) Loans 11 7.04 6.93
(vi) Other Financial Assets 12 56.20 382.52
2,806.13 3,249.19
(c) Current Tax Assets (net) 49.64 2.34
(d) Other Current Assets 13 967.72 521.37
6,225.91 6,130.94
Total Assets 15,719.60 15,652.90
EQUITY AND LIABILITIES
(1) EQUITY
(a) Equity Share Capital 14 6.78 6.78
(b) Other Equity 15 9,194.24 9,408.35
Equity attributable to equity holders of the parent 9,201.02 9,415.13
(c) Non-controlling interests (15.37) (16.77)
Total Equity 9,185.65 9,398.36
LIABILITIES
(2) NON-CURRENT LIABILITIES
(i) Borrowings 16 812.05 801.82
(ii) Other Financial Liabilities 17 183.10 173.74
995.15 975.56
(b) Provisions 18 87.99 84.81
(c) Other Non-Current Liabilities 19 15.05 15.84
(d) Deferred Tax Liabilities (Net) 5 0.15 -
1,098.34 1,076.21
(3) CURRENT LIABILITIES
(i) Borrowings 20 1,827.32 1,475.75
(ii) Trade Payables 21 1,539.09 1,544.00
(iii) Other Financial Liabilities 22 1,083.66 1,180.50
4,450.07 4,200.25
(b) Other Current Liabilities 23 947.61 926.52
(c) Provisions 24 37.63 39.04
(d) Current Tax Liabilities (Net) 0.30 12.52
5,435.61 5,178.33
Total Equity and Liabilities 15,719.60 15,652.90
Statement of Significant Accounting Policies and
Notes to the Financial Statements 1-49
The accompanying notes are an integral part of the financial statements

110

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2019
(Rupees in crore)
Note Current Year Previous Year
I. REVENUE FROM OPERATIONS 26 11,231.87 9,966.72

II. OTHER INCOME 27 117.78 108.78
TOTAL INCOME 11,349.65 10,075.50
III. EXPENSES
(1) Cost of Materials consumed 28 2,549.20 2,682.05
(2) Excise duty - 161.35
(3) Purchases of Stock-in-Trade 29 3,529.23 2,645.86
(4) Changes in Inventories of Finished Goods, Work-in-Process
and Stock-in-Trade 30 17.46 (66.86)
(5) Property Development and Construction Expenses 31 1,040.38 854.07
(6) Employee Benefits Expense 32 1,292.60 1,192.56
(7) Finance Costs 33 171.05 185.19
(8) Depreciation and Amortization Expense 223.19 203.84
(9) Other Expenses 34 2,177.93 1,920.16
(10) Less: Expenditure transferred to Capital Accounts (3.24) (21.68)
` TOTAL EXPENSES 10,997.80 9,756.54
IV. PROFIT BEFORE SHARE IN PROFIT OF EQUITY ACCOUNTED INVESTEES, EXCEPTIONAL ITEMS AND TAX 351.85 318.96
V. SHARE IN LOSS OF EQUITY ACCOUNTED INVESTEES (NET OF INCOME TAX) (16.58) (15.04)
VI. EXCEPTIONAL ITEMS 35 - 2.66
VII. PROFIT BEFORE TAX 335.27 306.58
VIII. TAX EXPENSE
(1) Current tax 110.89 155.74
(2) Prior years' current tax adjustments 15.44 (4.64)
(3) Deferred tax charge/(credit) (2.41) (15.27)
(4) Prior years' deferred tax adjustments 8.00 -
131.92 135.83
IX. PROFIT FOR THE YEAR 203.35 170.75
X. OTHER COMPREHENSIVE INCOME (OCI)
(i) Items that will not be reclassified to Statement of Profit and Loss
(a) Remeasurement of defined employee benefit plans 3.16 (6.46)
(b) Change in fair value of equity instruments through OCI (252.91) 1,650.12
(c) Tax on above items (1.19) 2.24
(ii) Items that will be reclassified to Statement of Profit and Loss
(a) Exchange differences in translating financial statements of foreign operations 1.19 -
(b) Change in fair value of other instruments through OCI 1.87 (1.87)
(c) Tax on above items (0.02) -
TOTAL OTHER COMPREHENSIVE (LOSS) / INCOME (247.90) 1,644.03
XI. TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR (44.55) 1,814.78
PROFIT FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company 207.52 194.71
Non-controlling interest (4.17) (23.96)
OTHER COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company (247.90) 1,644.03
Non-controlling interest - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company (40.38) 1,838.74
Non-controlling interest (4.17) (23.96)
XII. EARNINGS PER EQUITY SHARE
Basic and Diluted Earnings per Equity Share of Rs. 100 each 37 Rs. 3,059 Rs. 2,870
XIII. Statement of Significant Accounting Policies and
Notes to the Financial Statements 1-49
The accompanying notes are an integral part of the financial statements

111

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2019
(a) Equity share capital For the year ended For the year ended Rupees in Crore
31-03-2019 31-03-2018
Balance at the beginning of the year 6.78 6.78
Changes in equity share capital during the year - -
Balance at the end of the year 6.78 6.78
(b) Other equity Items of Other Comprehensive Income
Reserves and Surplus Not Reclassified to Reclassified to Profit Total Other Equity
Profit or Loss or Loss
Translation difference
Redemption Reserve
Remeasurements of
Legal and Statutory
Securities Premium
Translation Reserve
Capital Reserve on
Revaluation surplus
Revaluation surplus
Foreign Operations
Retained earnings
Foreign Currency
Foreign Currency
General Reserve
Capital Reserve
Non-controlling
the net defined

Combinations
benefit Plans
Debenture
Reserves
Business
Reserve
interest
Particulars
Balance as at 31/03/2017 - Restated 20.10 658.35 6,811.64 20.83 72.70 (19.76) 0.37 7.19 (7.95) 150.13 38.75 - 7,752.35
Profit / (Loss) after tax for the year - - 194.71 - - - - (23.96) - - - - 170.75
Fair valuation of investments in equity instruments - - - - - - - - - 1,650.12 - - (1.87) 1,648.25
Remeasurement of defined employee benefit plans net of
deferred tax - - - - - - - - (4.22) - - - (4.22)
Total comprehensive income for the year 2017-18 20.10 658.35 7,006.35 20.83 72.70 (19.76) 0.37 (16.77) (12.17) 1,800.25 38.75 - (1.87) 9,567.13
Interim Equity Dividend declared and paid during the year - - (152.65) - - - - - - - - - (152.65)
Dividend Distribution Tax (DDT) on Interim Dividend - - (31.08) - - - - - - - - - (31.08)
Transfer to Debenture Redemption Reserve - - (45.84) 45.84 - - - - - - - - -
Realised gain on sale of equity shares reclassified -
to retained earnings - - 311.05 - - - - - - (311.05) - - -
Additions /(Deletions) during the year - (5.43) (6.40) - - (0.19) (0.03) - - - 20.23 - 8.18
Balance as at 31/03/2018 20.10 652.92 7,081.43 66.67 72.70 (19.95) 0.34 (16.77) (12.17) 1,489.20 58.98 - (1.87) 9,391.58
Profit / (Loss) after tax for the year - - 207.52 - - - - (4.17) - - - - 203.35
Fair valuation of investments in equity instruments - - - - - - - - - (252.91) - - 1.87 (251.04)
Remeasurement of defined employee benefit plans net of
deferred tax - - - - - - - - 1.97 - 1.17 3.14
Total comprehensive income for the year 2018-19 20.10 652.92 7,288.95 66.67 72.70 (19.95) 0.34 (20.94) (10.20) 1,236.29 60.15 - - 9,347.03
Adjustments to Opening Retained Earnings Ind AS 115 (3.49) (3.49)
Interim Equity Dividend declared and paid during the year - - (135.70) - - - - - - - - - (135.70)
Dividend Distribution Tax (DDT) on Interim Dividend - - (27.89) - - - - - - - - - (27.89)
Transfer to Debenture Redemption Reserve - - (8.33) 8.33 - - - - - - - - -
Reclassification of excess amount transferred in earlier years (196.12) - 196.12 -
Realised gain on sale of equity shares reclassified -
to retained earnings - - 54.25 - - - - - - (54.25) - - -
Additions /(Deletions) during the year - - (5.57) - - - 0.01 5.57 - - (1.09) - (1.08)
Balance as at 31/03/2019 20.10 652.92 6,966.10 75.00 72.70 (19.95) 0.35 (15.37) (10.20) 1,378.16 59.06 - - 9,178.87
Notes forming part of the financial statements 1-49


PARTNER Chairman & Managing Director Executive Director & President Chief Financial Officer Executive Vice President (Corporate Affairs)
Membership No.: 038320 DIN: 00076250 DIN: 02366334 & Company Secretary
112

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31st MARCH, 2019
(Rupees in crore)
A. CASH FLOWS FROM OPERATING ACTIVITIES

PROFIT BEFORE TAXES 335.27 306.58
ADJUSTMENTS TO RECONCILE PROFIT BEFORE TAX TO NET CASH USED IN:
Depreciation and Amortization 223.19 203.84
Provisions for Doubtful Debts/Advances/Deposits 13.17 26.37
Bad Debts written off 13.03 62.66
Provision for Free Service under Product Warranties - -
Profit on Sale of Investments (Net) (1.63) (10.84)
Loss / (Profit) on Sale of Fixed Assets (Net) 0.48 (9.16)
Interest Received (21.38) (17.21)
Dividend Received (93.29) (56.92)
Interest and Finance Costs 171.05 185.19
Unrealised Foreign Currency Gain/(Loss) (10.58) 1.06
Impairment of Goodwill - 72.55
Share of Loss of Associates and Joint Ventures 16.58 15.04
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 645.89 779.16
MOVEMENT IN CURRENT ASSETS AND LIABILITIES:
Inventories (44.38) (208.83)
Trade and other Receivables (34.38) (317.85)
Trade and other Payables 50.62 257.65
CASH GENERATED FROM OPERATIONS 617.75 510.13
Direct Taxes paid (119.66) (68.93)
NET CASH FROM OPERATING ACTIVITIES 498.09 441.20
B. CASH FLOWS FROM INVESTING ACTIVITIES
Fixed Assets acquired (654.50) (447.99)
Proceeds from Sale of Fixed Assets 1.48 15.69
Sale /(Purchase) of Investments 156.84 417.20
Net (Increase) / Decrease in bank deposits 16.46 (60.25)
Interest Income 21.38 17.21
Dividend Income 93.29 56.92
NET CASH (USED IN) / FROM INVESTING ACTIVITIES (365.05) (1.22)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase / (Decrease) in short-term borrowings (251.46) 265.09
Fresh Loans and Deposits taken 3,918.32 2,886.30
Loans and Deposits repaid (3,309.21) (2,961.72)
Redemption of Debentures (100.00) -
Interest and Finance Costs (229.23) (204.62)
Dividend paid, including Dividend Distribution Tax (163.59) (183.73)
NET CASH USED IN FINANCING ACTIVITIES (135.17) (198.68)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) (2.13) 241.30
Cash and Cash Equivalents at the beginning of the year 318.06 76.76
Cash and Cash Equivalents at the end of the year 315.93 318.06
Add: Other Bank Balances (not considered as cash and cash equivalents):
Fixed Deposits with Banks 112.52 123.58
Other Bank Balances (including share in jointly controlled entities) 18.89 24.29
CLOSING CASH AND BANK BALANCES (NOTE 10) 447.34 465.93
D. COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cash on hand 1.29 2.18
Cheques on hand 207.66 236.42
Balances with Banks in Current Accounts 106.98 79.46
Notes forming part of the financial statements 1-49
113
NOTES:
1. The Statement of Cash Flow has been prepared under the "Indirect Method" as set out in the Indian Accounting Standard 7
(Ind AS-7) on "Statement of Cash Flows," and presents cash flows by operating, investing and financing activities.
2. Figures in brackets are outflows/deductions.
3. Cash and cash equivalents for the purposes of this Statement comprise of cash in hand, cash at bank and fixed deposits
with maturity of three months or less.


114
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A. General Information
Godrej & Boyce Manufacturing Company Limited ('the Company') incorporated on 3rd March, 1932 is a major company of the
Godrej Group. The Company has diverse business divisions offering a wide range of consumer, office, and industrial products and
related services of the highest quality to customers in India and abroad. The Company is domiciled in India and its registered office
is at, Pirojshanagar, Vikhroli, Mumbai 400 079.
The Consolidated Financial Statements comprise financial statements of Godrej and Boyce Manufacturing Company Limited and
its subsidiaries (collectively, 'the Group') and includes share of loss of associates and joint ventures for the year ended 31st March,
2019.
B. Basis of preparation of financial statements

These consolidated financial statements as at, and for the year ended, 31st March, 2019 have been prepared in accordance with
Indian Accounting standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013, read together with the
Companies (Indian Accounting Standards) Rules, 2015 (as amended).
The consolidated financial statements have been prepared and presented under the historical cost convention, on accrual and
going concern basis except for certain financial assets and financial liabilities that are measured at fair values at the end of each
reporting period, as explained in the accounting policies below.
The consolidated financial statements of the Company for the year ended 31st March, 2019 were approved for issue in accordance
with the Resolution passed by the Board of Directors at their meeting held on 20th August, 2019.
C. Functional and presentation currency

These consolidated financial statements are presented in Indian rupees, which is the Group’s functional currency. All amounts
have been rounded to the nearest crore, unless otherwise indicated; a crore is equal to ten million. Where changes in presentation
are made, comparative figures for the previous year are restated/regrouped accordingly.
D. Uses of Estimates and Judgements

The preparation of consolidated financial statements in accordance with Ind AS requires use of estimates and assumptions for
some items, which might have an effect on their recognition and measurement in the Balance Sheet and Statement of Profit and
Loss. The actual amounts realised may differ from these estimates.
Estimates and assumptions are required in particular for:
(i) Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may
be capitalised.
Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the
useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the
nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers’ warranties and maintenance support. Assumptions also need to be made,
when the Parent assesses, whether an asset may be capitalised and which components of the cost of the asset may be
capitalised.
(ii) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial
assumptions include discount rate, trends in salary escalation, vested future benefits and life expectancy. The discount rate is
determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of
the underlying bonds correspond to the probable maturity of the post-employment benefit obligations. The same is
disclosed in Note 38.
(iii) Income Taxes
Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.
A deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable
profit will be available against which the deductible temporary difference can be utilised. The management assumes that
taxable profits will be available while recognising deferred tax assets.
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(iv) Recognition and measurement of provisions

The recognition and measurement of provisions are based on the assessment of the probability of an outflow of resources,
and on past experience and circumstances known at the Balance Sheet date. The actual outflow of resources at a future date
may therefore vary from the figure included in other provisions.
(v) Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether the arrangement is or contains a lease. At inception or on
reassessment of an arrangement that contains a lease, the Group separates payments and other consideration required by
the arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group
concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are
recognised at an amount equal to the fair value of the underlying asset; subsequently, the liability is reduced as payments
are made and an imputed finance cost on the liability is recognised using the Company ’s incremental borrowing rate. And in
case of operating lease, all payments under the arrangement are treated as lease payments.
(vi) Rebates and sales incentives
Rebates are generally provided to distributors or customers as an incentive to sell the Group’s products. Rebates are based
on purchases made during the period by distributor / customer. The Group determines the estimates of rebate accruals
primarily based on the contracts entered into with their distributors / customers and the information received for sales made
by them.
(vii) Fair value of financial instruments
Derivatives are carried at fair value. Derivatives includes Foreign Currency Forward Contracts and Interest Rate Swaps. Fair
valued of Foreign Currency Forward Contracts are determined using the fair value reports provided by the respective
merchant bankers. Fair value of Interest Rate Swaps are determined with respect to current market rate of interest.
(viii) Impairment of Financial Assets

The Group reviews its carrying value of investments in subsidiaries and associates on an annual basis or more frequently
when there is an indication of other than temporary impairment in the carrying value of its investments. The recoverable
amount is measured using future cash flows projections provided by the management. A significant degree of judgment is
required in establishing these recoverable values. Judgments include considerations such as change in business strategy,
liquidity risk, credit risk and volatility which provide objective evidence of an impairment which is other than temporary in
the long term inherent value of the investment.
(ix) Assurance Product Warranty Obligations
The estimates for product warranty obligations are established using historical information on the nature, frequency and
average cost of warranty claims and management estimates regarding possible future incidences.
(x) Expected Cost of Completion of Contracts
For the purpose of arriving at revenues from construction contracts, the Company's Management estimates the cost of
completion for each project. Management systematically reviews further projected costand compares the aggregateof cost
incurred to date and future costs projections against budgets, on the basis of which, proportionate revenue (or anticipated
lossed), if any, are recognised.
E. Standards issued but not effective

On 30th March, 2019, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments)
Rules, 2019, notifying Ind As 116 on Leases. Ind AS 116 would replace the existing lease standard Ind AS 17. The standard sets
out the principles for the recognition, measurement, presentation and disclosures for both parties to a contract, ie. the
lessee and the lessor. Ind AS 116 introduces a single lease accounting model and required a lessee to recognise assets and
liabilities for all leases with a term of more than 12 months, unless the underlying assets is of low value. Currently for
operating lease rentals are charged to the statement of profit and loss. The Company is currently evaluating the implications
of Ind AS 116 on the financial statements.
The Companies (Indian Accounting Standards) Amendment Rules, 2019 also notified amendments to the following
accounting standards. The amendments would be effective from 1st April, 2019.
1. Ind AS 12 - Income taxes - Appendix C on uncertainty over income tax treatments
2. Ind AS 12 - Income taxes - Accounting for Dividend Distribution Taxes
3. Ind AS 23 - Borrowing Costs
4. Ind AS 28 - Investments in associates and joint ventures
5. Ind AS 103 and Ind AS 111 - Business Combinations and joint arrangements
6. Ind AS 109 - Financial Instruments
7. Ind AS 19 - Employee benefits
The Company is in the process of evaluating the impact of such amendments.
F. Measurement of fair values

The Group ’s accounting policies and disclosures require the measurement of fair values for financial instruments.
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The Group has an established control framework with respect to the measurement of fair values. The management regularly
reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing
services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support
the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such
valuations should be classified.
When measuring the fair value of a financial asset or a financial liability, the Group uses observable market data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows:
Level 1 : inputs are 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).
Level 3 : inputs for the asset or liability that are not based on observable market data (unobservable inputs). Fair values are
determined in whole or part using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the
change has occurred.
G. Significant accounting policies

i. Property, plant and equipment
Property, plant and equipment is recognised when it is probable that future economic benefit associated with the asset will
flow to the Group, and the cost of the asset can be measured reliably.
Items of property, plant and equipment are measured at original cost less accumulated depreciation and any accumulated
impairment losses.
The cost of an item of property, plant and equipment comprises:
a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and
rebates.
b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition
necessary for it to be capable of operating in the manner intended by management, are recognised in the Statement of Profit
and Loss.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as
separate items (major components) of property, plant and equipment, and depreciated over their respective useful lives.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in the Statement of Profit and Loss.
All property, plant and equipment received in exchange for non-monetary assets are measured at fair value unless the
exchange transaction lacks commercial substance or the fair value of neither the asset received nor the asset given up is
reliably measurable. Measurement of an exchange at fair value will result in the recognition of a gain or loss based on the
carrying amount of the asset surrendered. If a fair value can be determined reliably for either the asset received or the asset
given up, then the fair value of the asset given up should be used unless the fair value of the asset received is more clearly
evident. Accordingly, Transferable Development Rights (TDR’s) obtained by the Group in respect of its freehold lands situated
at Mumbai, are carried at fair value of land given up unless the fair value of TDR received is more clearly evident, and are
shown under Freehold Land. Any gain or loss arising from such exchange is immediately recognised in the Statement of Profit
and Loss.
Any transfer of such TDR’s / land from fixed asset to inventory is done at cost.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure
will flow to the Group.
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c. Depreciation / Amortisation
The Group has followed the Straight Line method for charging depreciation on all items of property, plant and equipment, at
the rates specified in Schedule II to the Act; these rates are considered as the minimum rates. If management's estimate of
the useful life of the property, plant and equipment is shorter than that envisaged in Schedule II, depreciation is provided at
a higher rate based on management’s estimate of the useful life. Accordingly, in respect of the commercial construction
projects, on some items of equipment at the project sites, depreciation is provided at a higher rate based on useful life of the
assets estimated at 5 years, compared to 15 years specified in Schedule II.
Moreover, in respect of special-purpose machinery used in the contract-manufacturing of precision components and
systems, depreciation is charged over the period of such manufacturing contracts. In respect of additions to/deductions
from the assets, the depreciation on such assets is calculated on a pro rata basis from/upto the month of such
addition/deduction. Assets costing less than Rs. 5,000 are fully depreciated in the year of purchase/acquisition. Leasehold
Land and Buildings are amortised over the period of the lease. The cost of property, plant and equipment not ready for their
intended use at the balance sheet date is disclosed under capital work-in-progress.
Intangible assets comprising of Technical Know-how and Trade Marks are amortised on straight-line basis at the rate of
16.67%; capitalised Computer Software costs relating to the ERP system, are amortised on straight line basis at the rate of
20%.
ii. Investment properties
a. Properties held to earn rentals and / or capital appreciation (including property under construction for such purposes) are
classified as investment properties.
b. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
c. The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition
criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Group
depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in
profit or loss as incurred.
d. The Group follows the straight line method for charging depreciation on investment property over estimated useful lives
prescribed in Schedule II to the Companies Act, 2013.
e. Though the Group measures investment property using cost based measurement, the fair value of investment property is
disclosed in the notes.
f. Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn
from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds
and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.
iii. Intangible assets
Intangible assets, including patents and trademarks, which are acquired by the Group and have finite useful lives are
measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in
profit or loss as incurred.
c. Amortisation
Intangible assets are amortised over their estimated useful life on straight line method.
iv. Investment in Joint Ventures and Associates
Non-current investments in associates and joint ventures are carried at their book values, which are higher than their fair
values, the diminution in the value of such investments is considered to be of a temporary nature, in view of the Group's long-
term financial involvement in such investee companies.
v. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
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A. Financial Assets
(a) Initial recognition and measurements:
The Group recognises a financial asset in its balance sheet when it becomes party to the contractual provisions of the
instrument. All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair
value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of the financial asset at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to change in factor that market participants take into account when pricing the
financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction price.
For subsequent measurement, the Group classifies a financial asset in accordance with the below criteria;
(i) The Group’s business model for managing the financial asset and
(ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Group classifies its financial assets into the following categories:
(i) Financial assets measured at amortised cost
(ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)
(iii) Financial assets measured at fair value through profit or less (FVTPL)
(i). Financial assets measured at amortised cost:
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The Group’s business model objective for managing the financial asset is to hold financial assets in order to collect
contractual cash flows, and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principle amount outstanding.
This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Group (Refer
Note 39 for further details). Such financial assets are subsequently measured at amortised cost using the effective
interest method.
Under the effective interest method, the future cash receipts are exactly discounted to the initial recognition value using
the effective interest rate. The cumulative amortization using the effective interest method of the difference between
the initial recognition amount and the maturity amount is added to the initial recognition value (net of
principal/repayments, if any) of the financial asset over the relevant period of the financial asset to arrive at the
amortised cost at each reporting date. The corresponding effect of the amortization under effective interest method is
recognised as interest income over the relevant period of the financial asset. The same is included under other income in
the Statement of Profit and Loss.
The amortised cost of financial asset is also adjusted for loss of allowance, if any.
(ii). Financial asset measured at FVTOCI:
A financial asset is measured at FVTOCI if both of the following conditions are met:
a) The Group’s business model objective for managing the financial asset is achieved both by collecting contractual cash
flows and selling the financial asset, and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of
principal and interest on the principal amount outstanding.
This category applies to certain investments in debt instruments (Refer Note 16 for further details). Such financial assets
are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the other
Comprehensive Income (OCI). However, the Group recognises interest income and impairment losses and its reversals in
the Statement of Profit and Loss.
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On Derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified from equity
to the Statement of Profit and Loss.
Further, the Group, through an irrevocable election at initial recognition, has measured certain investments in equity
instruments at FVTOCI (Refer Note 39 for further details). The Group has made such election on an instrument by
instrument basis. These equity instruments are neither held for trading nor are contingent consideration recognised
under a business combination. Pursuant to such irrevocable election, subsequent changes in the fair value of such equity
instruments are recognised in OCI. However, the Group recognises dividend income from such instruments in the
Statement of Profit and Loss.
On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not reclassified from the
equity to the Statement of Profit and Loss. However, the Group may transfer such cumulative gain or loss into retained
earnings within equity.
(iii). Financial asset measured at FVTPL:
A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This is a
residual category applied to all other investments of the Group excluding investments in associates and joint ventures
(Refer Note 39 for further details). Such financial assets are subsequently measured at fair value at each reporting date.
Fair value changes are recognised in the Statement of Profit and Loss.
(c ) Derecognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised
(i.e. removed from the Group’s balance sheet) when any of the following occurs:
(i) The contractual rights to cash flows from the financial asset expires;
(ii) The Group transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all
the risks and rewards of ownership of the financial asset.
(iii) The Group retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows
without material delay to one or more recipients under a ‘pass-through’ arrangement (thereby substantially transferring all
the risks and rewards of ownership of the financial asset);
(iv) The Group neither transfers nor retains substantially all risk and rewards of ownerships and does not retain control over
the financial assets.
In cases where Group has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but
retains control of the financial asset, the Group continues to recognise such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Group also recognises an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
On Derecognition of a financial asset, (except as mentioned in ii above for financial assets measured at FVTOCI), the
difference between the carrying amount and the consideration received is recognised in the Statement of Profit and Loss.
(d) Impairment of financial assets:
The Group applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:
i. Trade receivables, Contract Assets and lease receivables.

ii. Financial assets measured at amortised cost (other than trade receivables, contract assets and lease receivables)
iii. Financial assets measured at fair value through other comprehensive income (FVTOCI)
In case of trade receivables contract assets and lease receivables, the Group follows a simplified approach wherein a amount
equal to lifetime ECL is measured and recognised as loss allowance.
In case of other assets (listed as ii and iii above), the Group determines if there has been a significant increase in credit risk of
the financial assets since initial recognition, if the credit risk of such assets has not increased significantly, an amount equal
to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an
amount equal to lifetime ECL is measured as recognised as loss allowance.
Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit
risk since initial recognition, the Group reverts to recognizing impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the
cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
asset, 12month ECL, are a portion of the lifetime ECL which result from default events that are possible within 12 months
from the reporting date.
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ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of
outcome, taking into account the time value of money and other reasonable information available as a result of past events,
current conditions and forecasts of future economic conditions.
As a practical expedient, the Group uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and
contract assets and is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates
and changes in the forward-looking estimates are updated.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the Statement
of Profit and Loss under the head 'Other expenses'.
B. Financial Liabilities
(a) Initial recognition and measurement:
The Group recognises a financial liability in its balance sheet when it becomes party to the contractual provisions of the
instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded
at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.
Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing
the financial liability.
All financial liabilities of the Group are subsequently measured at amortised cost using the effective interest method (Refer
Note 39 for further details).
Under the effective interest method, the future cash payments are exactly discounted to the initial recognition value using
the effective interest rate. The cumulative amortization using the effective interest method of the difference between the
initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if
any) of the financial liability over the relevant period of the financial liability to arrive at the amortised cost at each reporting
date. The corresponding effect of the amortization under effective interest method is recognised as interest expense over
the relevant period of the financial liability. The same is included under finance cost in the Statement of Profit and Loss.
(c ) Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When the
existing financial liability is replaced by another from the same lender or substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the Derecognition of the original
liability and the recognition of a new liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid is recognised in the Statement of Profit and Loss.
C. Derivative financial instruments
The Group uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks . Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into
and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and
as financial liabilities when the fair value is negative.
vi. Inventories
Trade Inventories:
Raw Materials, Loose Tools, Stores, Spares, etc. are valued at lower of weighted average cost and estimated net realisable
value. Estimated net realisable value of raw materials is determined on the basis of the price of the finished products in
which they will be used are expected to be sold.
Work-in-Process (other than Construction Projects) is valued at lower of estimated cost (consisting of direct material and
direct labour costs plus appropriate factory overheads) and estimated net realisable value.
Finished Goods, goods in transit and goods with third parties are valued at lower of weighted average cost and estimated net
realisable value; cost includes purchase, conversion, appropriate factory overheads, any taxes or duties and other costs
incurred for bringing the inventories to their present location and condition. Spares and Components for after-sales service
are valued at lower of average cost and estimated net realisable value on an item-by-item basis.
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Obsolete and damaged inventories, and other anticipated losses are adequately provided for, wherever considered
necessary.
Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion
and selling expenses.
Construction Projects:
In respect of the commercial construction projects promoted / developed on the Group’s land, construction work-in-progress
is valued at estimated cost consisting of the cost of land (forming part of the project), development, construction and other
related costs. Construction Work in progress includes projects for Industrial Products / Equipment.
Work in process is valued at lower of specifically identified costs or net realisable value.
vii. Cash and cash equivalents
The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash and
cash equivalents. Cash and cash equivalents in the Balance Sheet comprises of cash on hand, bank balances which are
unrestricted for withdrawal and usage and short-term deposits with an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
viii. Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended use are capitalised as part of the cost of that asset till the date it is
ready for its intended use or sale. Other borrowing costs are recognised as an expense in the period in which they are
incurred.
ix. Provisions and Contingent Liabilities and Contingent Assets
A provision is recognised only when there is a present legal / constructive obligation as a result of a past event that probably
requires an outflow of resources to settle the obligation and in respect of which a reliable estimate can be made. Provision is
not discounted to its present value and is determined based on the best estimate required to settle the obligation at the
balance sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation
in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions and Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date. Contingent Assets and
related income are recognised when there is virtual certainty that inflow of economic benefit will arise.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the
contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises
any impairment loss on the assets associated with that contract.
x. Revenue Recognition
Effective 1st April, 2018, the Company has applied Ind AS 115 'Revenue from Contracts with Customers' which establishes a
comprehensive framework, for determining whether, how much and when revenue is to be recognised. The Company
elected to transition retrospectively with cumulative effect of initially applying the standard recognised as an adjustment to
the opening balance sheet as at 1st April, 2018 on the contracts that are not completed contracts as at that date.
Performance obligation and transaction price (Fixed and variable)

At inception of the contract, the Company assesses the goods or services promised in a contract with a customer and
identifies each promise to transfer to the customer as a performance obligation which is either:
(a) a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the
customer.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price allocated to that
performance obligation. The transaction price of sale of products and services rendered is net of variable consideration on
account of various discounts and schemes offered by the Company as part of the contract. This variable consideration is
estimated based on the expected value of the outflow. Revenue is recognised only to the extent that it is highly probable that
the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.
(a) Sale of products
The Company recognizes revenue on the sale of products, net of discounts, sales incentives and rebates granted when
control of the goods is transferred to the customer. The performance obligation in case of sale of products is satisfied at a
point of time i.e. when the goods are shipped to the customer or on delivery to the customer, as may be specified in the
contract. Control is considered to be transferred to customer when customer has ability to direct the use of such goods,
obtain substantially all the benefits and bears all risks in respect of such goods.
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Accumulated experience is used to estimate and accrue for the discounts and returns considering the terms of the underlying
schemes and agreements with the customers. No element of financing is deemed present as the sales are made with normal
credit days consistent with market practice. A liability is recognised where payments are received from the customers before
transferring control of the goods being sold.
(b) Lease Rentals
The Company has determined that the payments to the lessor are structured to increase in line with expected general
inflation to compensate for the lessor’s expected inflationary cost increases. Accordingly rental income arising from
operating leases on investment properties is accounted for on an accrual basis as per the terms of the lease contract and is
included in Revenue from Operations in the Statement of Profit and Loss due to its operating nature.
(c) Revenue from construction contracts for industrial products / equipments
Industrial products / equipments are constructed based on specifically negotiated contracts with customers. Contract
revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive
payments, to the extent that it is probable that they will result in revenue and can be measured reliably.
If the outcome of such contracts can be estimated reliably, then contract revenue is recognised in the Statement of Profit and
Loss in proportion to the stage of completion. The stage of completion is based on percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Otherwise, contract revenue is recognised only to the extent of
contract costs incurred that are likely to be recoverable.
In the case of certain industrial products, the stage of completion is based on either survey of the work performed or
completion of a physical proportion of contract work.
An expected loss on a contract is recognised immediately in the Statement of Profit and Loss.
(d) Revenue from rendering of services
Revenue from service transactions is recognised as per agreements / arrangements with the customer when the related
services are rendered / provided. If the services under a single arrangement are rendered in different reporting periods, then
the consideration is allocated on a time proportion basis. Each distinct service, results in a simultaneous benefit to the
corresponding customer and the Company has an enforceable right to payment from the customer for the performance
completed to date.
(e) Revenue from Real Estate Transaction
The Company develops and sells residential properties. The Company enters into arrangements with customers for sale of
units of such residential properties. These arrangements generally meet the criteria for considering the sale of units as
distinct performance obligation. The Company recognises revenue when its performance obligations are satisfied and
customer obtains control of the asset. For allocating the transaction price, the Company has measured the revenue in respect
of each performance obligation of a contract at its relative standalone selling price. The transaction price is also adjusted for
the effects of the time value of money if the contract includes a significant financing component. Any consideration payable
to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service.
Income from operation of commercial complexes is recognised over the tenure of the lease / service agreement.
Revenues in excess of invoicing are classified as contract assets while invoicing in excess of revenues are classified as contract
liabilities. Contract Assets are classified as non-financial assets.
On account of adoption of Ind AS 115, opening reserves as on 1st April, 2018 is adjusted for impact on revenue recognition in
earlier years with corresponding effect to unbilled revenue and inventories.
xi. Employee benefits
a. Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided. The Group’s
contributions paid/payable to Managerial Superannuation Fund, Employees’ State Insurance Scheme, Employees’ Pension
Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes, and are recognised
as expense in the Statement of Profit and Loss during the period in which the employee renders the related service. There
are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.
b. Defined benefit plans
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount
of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the
fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit
method.
123
Short-term employee benefits (payable within twelve months of rendering the service)
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably.
Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. Net
interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure
the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account
any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses
related to defined benefit plans are recognised in the Statement of Profit and Loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Group recognises
gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Further, the Rules of the Company's Provident Fund (PF) administered by an approved Trust, require that if the Board of
Trustees is unable to pay interest at the rate declared for the Employees’ Provident Fund by the Government under para 60
of the Employees’ Provident Fund Scheme, 1952, for the reason that the return on investment is less or for any other reason,
then the deficiency shall be made good by the Company.
Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
Re-measurement are recognised in profit or loss in the period in which they arise. Other employee benefits include leave
encashment/long-term compensated absences schemes.
xii. Other Operating Revenue

Other Operating Revenue represents income earned from the activities incidental to business and is recognised when the
right to receive is established as per the terms of the contract.
xiii. Finance costs

Finance costs are recorded using the effective interest rate method.
xiv. Other Income

The Group’s other income includes interest and dividend income.
Interest income is recognised using the effective interest rate method. Dividend income is recognised in the Statement of
Profit and Loss on the date on which the Group’s right to receive is established.
xv. Foreign currency transactions

Income and expenses in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange
rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are
translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency
differences are generally recognised in profit or loss. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
xvi. Income Taxes

Income tax expense comprises current tax expense and the net change in deferred taxes recognised in the statement of
profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity
respectively.
a. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted
at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if, the Group:
(i) has a legally enforceable right to set off the recognised amounts; and
(ii) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
b. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
124
(i) temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss; and
(ii) temporary differences related to investments in subsidiaries and associates to the extent that the Group is able to control
the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future;
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if:
a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on
the same taxable entity.
Deferred tax asset / liabilities in respect of temporary differences which originate and reverse during the tax holiday period
are not recognised. Deferred tax assets / liabilities in respect of temporary differences that originate during the tax holiday
period but reverse after the tax holiday period are recognised. Deferred tax assets on unabsorbed tax losses and tax
depreciation are recognised only to the extent that there is virtual certainty supported by convincing evidence of their
realisation and on other items when there is reasonable certainty of realisation. The tax effect is calculated on the
accumulated timing differences at the year-end based on the tax rates and laws enacted or substantially enacted on the
balance sheet date.
Minimum Alternate Tax (MAT) Credit Entitlement is recognised as a Deferred Tax Asset only when and to the extent there is
convincing evidence that the Group will pay normal income tax during the specified period in which such credit can be
carried forward for set-off within the time frame prescribed by the Income Tax Act, 1961. The carrying amount of MAT Credit
Entitlement is reviewed at each Balance Sheet date.
xvii. Leases (where the Group is the lessor)

The Group's assets subject to operating leases in its Estate Leasing Operations are included in Investment Property. Lease
income is recognised and included in Revenue from Operations in the Statement of Profit and Loss on a straight-line basis
over the lease term. Costs, including depreciation, are recognised as an expense in the Statement of Profit and Loss. Initial
direct costs such as legal costs, brokerage costs, etc. are recognised immediately in the Statement of Profit and Loss.
xviii. Leases (where the Group is the lessee)

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lessor are
recognised as operating lease. In respect of assets taken on operating lease, lease rentals are recognised as an expense in the
Statement of Profit and Loss on straight line basis over the lease term unless;
(a) another systematic basis is more representative of the time pattern in which the benefit is derived from the leased asset;
or
(b) the payments to the lessor are structured to increase in the line with the expected general inflation to compensate for the
lessor's expected inflationary cost increases.
xix. Product warranty expense under service warranty obligation
In respect of products sold by the Group, which carry a specified warranty, future costs that will be incurred by the Group in
carrying out its contractual warranty obligations are estimated and accounted for on accrual basis.
xx. Research And Development Expenses:
Research and product development costs incurred are recognised as intangible assets when feasibility has been
established and it is probable that the asset will generate probable future economic benefits. Other research costs are
charged to the Statement of Profit and Loss under the respective natural head of expense.
125
xxi. Earnings per share

Basic and diluted earnings per share is computed by dividing the profit/(loss) after tax by the weighted average
number of equity shares outstanding during the year.
xxii. Segment Reporting
Operating Segments are defined as components of the Group for which discrete financial information is available and are
reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The
CODM is responsible for allocating resources and assessing performance of the operating segments of the Group. The
Group's CODM is the Managing Director and President.
xxiii. Business Combinations of entities under common control
Business combinations involving entities under common control are accounted for using the pooling of interest method. The
net assets of the transferor entity or business are accounted at their carrying amounts on the date of acquisition subject to
necessary adjustments required to harmonise accounting policies. Any excess or shortfall of the consideration paid over the
share capital or the transferor entity or business is recognised as capital reserve under equity.
The financial information in the consolidated financial statements in respect of prior periods shall be restated as if the
business combination had occurred from the beginning of the preceding period.
xxiv. Goodwill
Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the
acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated
impairment losses, if any. Goodwill is tested for impairment annually or when events or circumstances indicate that the
implied fair value of Goodwill is less than its carrying amount.
xxv. Impairment
Assets that are subject to depreciation and amortisation and assets representing investments in subsidiary and associate
companies are reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may
not be recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or
earnings and material adverse changes in the economic environment.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To
calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent
cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the
best estimate of the amount obtainable from the sale of an asset in the arm's length transaction between knowledgeable,
willing parties, less the cost of disposal.
Impairment losses, if any, are recognised in the Statement of Profit and Loss and included in depreciation and amortisation
expense. Impairment losses, on assets other than goodwill are reversed in the Statement of Profit and Loss only to the extent
that the asset's carrying amount does not exceed the carrying amount that would have been determined if no impairment
loss had previously been recognised.
xxvi. Events after reporting date
Where events occurring after the balance sheet date till the date when the consolidated financial statements are approved
by the Board of Directors of the Group, provide evidence of conditions that existed at the end of the reporting period, the
impact of such events is adjusted within the financial statements. Otherwise, events after the reporting balance sheet date of
material size or nature are only disclosed.
H. Current / Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:
i. the asset/liability is expected to be realised/settled in the Group's normal operating cycle;
ii. the asset is intended for sale or consumption;
iii. the asset/liability is held primarily for the purpose of trading;
iv. the asset/liability is expected to be realised/settled within twelve months after the reporting period;
v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for atleast twelve
months after the reporting date;
vi. in the case of a liability, the Group does not have an unconditional right to defer settlement of the liability for atleast twelve
months after the reporting date.
All other assets and liabilities are classified as non-current.
For the purpose of current / non-current classification of assets and liabilities, the Group has ascertained its normal cycle as
twelve months. This is based on the nature of services and the time between the acquisition of assets for processing and
their realisation in cash and cash equivalents.
126
2A. PROPERTY, PLANT AND EQUIPMENT

(Rupees in crore)
Tangible Assets
Total
Furniture & Fixtures

Leasehold Buildings
Plant & Equipment

Freehold Buildings
Office Equipment
& Improvements
Leasehold Land
Freehold Land
Vehicles/
Vessels
Particulars
COST OF ASSETS
Gross Block as at 1/4/2018 331.32 89.49 711.60 35.65 1,103.33 16.38 63.44 65.36 2,416.57
Additions 8.62 - 138.96 5.38 167.93 3.22 6.93 14.29 345.33
Deductions - - (0.47) (0.76) (5.59) (0.67) (1.54) (0.89) (9.92)
Other Adjustments (including foreign
exchange on translation) - - - 1.41 1.91 0.02 0.06 0.04 3.44
Gross Block as at 31/3/2019 339.94 89.49 850.09 41.68 1,267.58 18.95 68.89 78.80 2,755.41
DEPRECIATION
Depreciation on Deductions - - (0.11) (0.39) (3.96) (0.65) (1.33) (1.54) (7.98)
Other Adjustments (including foreign
exchange on translation) - - - 0.86 1.75 0.10 0.02 0.04 2.78
Total Depreciation upto 31/3/2019 - 6.18 85.18 13.83 516.99 4.78 33.45 46.21 706.62
NET BOOK VALUE

Net Block as at 31/3/2019 339.94 83.31 764.91 27.85 750.59 14.18 35.44 32.59 2,048.80
Capital Work-in-progress - - 629.80 - 162.51 - 0.75 4.33 797.39
Total as at 31/3/2019 339.94 83.31 1,394.71 27.85 913.10 14.18 36.19 36.92 2,846.19

Land Use Computer Technical Total
Particulars
Rights Software Know-how Trademarks
COST OF ASSETS
Gross Block as at 1/4/2018 1.19 29.80 0.96 0.13 32.08
Additions - 39.69 - - 39.69
Deductions - (0.17) - - (0.17)
Other Adjustments 0.16 (0.26) - - (0.10)
Gross Block as at 31/3/2019 1.35 69.05 0.96 0.13 71.49
AMORTIZATION
Total Amortization as at 1/4/2018 0.05 9.96 0.96 0.12 11.09
Charge for the year 0.04 7.73 - 0.01 7.78
Deductions during the year - (0.15) - - (0.15)
Other Adjustments 0.08 0.01 - - 0.09
Net Block as at 31/3/2019 1.18 51.50 - - 52.68
Intangible Assets under development - 6.40 - - 6.40
Refer Note No 25 for disclosure of contractual commitments for the acquisition of Property, Plant and Equipments.
127
2A. PROPERTY, PLANT AND EQUIPMENT

(Rupees in crore)
Tangible Assets
Total
Furniture & Fixtures

Leasehold Buildings
Plant & Equipment

Freehold Buildings
Office Equipment
& Improvements
Leasehold Land
Freehold Land
Vehicles/
Vessels
Particulars
COST OF ASSETS
Gross Block as at 1/4/2017 300.70 89.49 581.08 27.89 944.58 16.09 58.48 58.92 2,077.23
Additions 31.00 - 130.80 7.75 164.10 0.47 5.94 7.37 347.43
Deductions (0.38) - (0.28) - (4.33) (0.21) (1.08) (0.94) (7.22)
Other Adjustments - - - 0.01 (1.02) 0.03 0.10 0.01 (0.87)
Gross Block as at 31/3/2018 331.32 89.49 711.60 35.65 1,103.33 16.38 63.44 65.36 2,416.57
DEPRECIATION
Depreciation on Deductions - - 0.69 - (0.53) - (0.91) (0.08) (0.83)
Other Adjustments - - - - (0.78) 0.02 0.05 0.01 (0.70)
Total Depreciation upto 31/3/2018 - 3.83 54.57 8.71 373.72 3.77 26.00 35.00 505.60
NET BOOK VALUE

Net Block as at 31/3/2018 331.32 85.66 657.03 26.94 729.61 12.61 37.44 30.36 1,910.97
Capital Work-in-progress - - 451.60 - 74.66 - 1.50 5.77 533.53
Total as at 31/3/2018 331.32 85.66 1,108.63 26.94 804.27 12.61 38.94 36.13 2,444.50

Land Use Computer Technical Total
Particulars
Rights Software Know-how Trademarks
COST OF ASSETS
Gross Block as at 1/4/2017 1.33 6.93 0.96 0.13 9.35
Additions - 22.80 - - 22.80
Deductions - - - - -
Other Adjustments (0.14) 0.07 - - (0.07)
Gross Block as at 31/3/2018 1.19 29.80 0.96 0.13 32.08
AMORTIZATION
Charge for the year 0.04 5.31 0.10 0.04 5.49
Deductions during the year - (0.06) - - (0.06)
Other Adjustments (0.07) 0.10 - - 0.03
Net Block as at 31/3/2018 1.14 19.84 - 0.01 20.99
Intangible Assets under development - 3.04 - - 3.04
Notes:
(a) In respect of the Company’s freehold land situated at Thane (transferred on Amalgamation of the erstwhile Lawkim Ltd.):
(i) Land admeasuring approximately one acre was the subject matter of dispute. The Company has filed an appeal in the
Hon’ble High Court of Judicature at Bombay, against the Order dated 23rd December, 2004 passed by the Third Additional
District Judge, Thane. The Company has also registered notice of lis pendens dated 17th May, 2005 with the Registrar of Sub-
Assurance.
(ii) A part of the land was acquired by the Thane Municipal Corporation and the Company has an option for the Transferable
Development Rights (TDR) as compensation for the said acquisition. Pending the receipt of such compensation by the Company
in the form of TDR, no adjustment has been made in the books in this regard.
(b) Freehold Land includes (i) leasehold rights in perpetuity and (ii) transferable development rights (TDRs). Freehold Buildings
include investments representing shares in ownership of flats.
128
2.B. INVESTMENT PROPERTY (Rupees in crore)

COST OF ASSETS As at 31/3/2019 As at 31/3/2018
Opening Gross Block 398.82 399.68
Adjustments pursuant to loss of control of subsidiaries
Additions 0.51 -
Deductions (0.86)
Adjustments on consolidation - -
Closing Gross Block 399.33 398.82
ACCUMULATED DEPRECIATION
Opening Accumulated Depreciation 27.58 19.11
Adjustments pursuant to loss of control of subsidiaries
Depreciation for the year 9.21 9.19
Depreciation pursuant to loss of control of subsidiaries - (0.72)
Depreciation on Deductions - -
Closing Accumulated Depreciation 36.79 27.58
NET BOOK VALUE
Net Block 362.54 371.24
(Rupees in crore)
2018-19 2017-18
Rental Income derived from investment properties 226.92 249.37
Direct operating expenses (including repairs and
maintenance) generating rental income 67.07 61.63
Profit arising from investment properties 159.85 187.74
As at 31st March, 2019 and 31st March, 2018, the fair values of the properties are Rs. 2,275.87 crore and Rs.
2,361 crore.
These valuations are based on discounted cash flow method
Reconciliation of fair value:

Balance as at 31/03/2018 2,361.00
Fair value differences (85.13)
Purchases
Balance as at 31/03/2019 2,275.87
The Company has applied the method of Discounted Cash Flow projections based on reliable estimates of future
cash flows.
Description of valuation technique and key inputs to valuation on investment properties:
Valuation technique
Discounted Cash Flow
Significant unobservable inputs Range (weighted average)

Rent growth p.a. 5%
Long term vacancy rate 10%
Discount rate 15%
129
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
3A. INVESTMENTS (Refer Note 42)
TRADE INVESTMENTS (valued at cost unless stated otherwise):

INVESTMENTS IN ASSOCIATES
(a) UNQUOTED
(1) Investments in Equity Shares in Associate Companies
(i) 5,78,200 Fully Paid Shares of RO 1 each in Godrej & Khimji (Middle East) LLC. Oman 11.22 14.05
(ii) 38 Ordinary Shares of USD 1 each in Parazelsus, Orient Ltd. USA. * - -
(iii) 17,75,385 (as at 31-03-2018: 17,75,385) common units at Rs. 3.25 each in Urban Electric
Power Inc. USA 1.79 11.73
(2) Investments in Limited Liability Partnership Firms
(i) Contribution towards 50% of the Fixed Capital of Godrej & Boyce Enterprises LLP* - -
(ii) Contribution towards 20% of the Capital of Future Factory LLP (including share of profit of Rs.
0.36 crore booked during the year) 3.38 3.03
(a) Total capital of the Firm: Rs. 10.31 crore
(b) Names of other Partners and % share in Capital:
Mr. Jashish Navin Kambli - 56% and Mrs. Geetika Kambli - 24%
*(Amount less than Rs.50,000) 3.38 3.03
16.39 28.81
INVESTMENTS IN JOINT VENTURES
(a) UNQUOTED
(1) Investments in Equity Shares in Joint Ventures
(i) 7,50,000 Equity Shares of Rs.10 each in Godrej Consoveyo Logistics Automation Limited
(formerly, Godrej Efacec Automation and Robotics Limited) 3.96 8.16
(ii) 1,00,000 (as at 31-03-2018: 1,00,000) Equity Shares of SGD. 1 each in Godrej UEP (Singapore)
Pte. Ltd. (Joint venture with UEP, USA) * 0.47 0.48
4.43 8.64
Total Unquoted Non-current Trade Investments 20.82 37.45
(a) Aggregate amount of Quoted Investments - -

(b) Aggregate amount of Unquoted Investments 20.82 37.45
Aggregate Book Value of Investments 20.82 37.45
3B. OTHER INVESTMENTS

(a) Quoted Investment
(1) Investments in Equity Shares (Fully Paid up unless stated otherwise)
(i) 7,50,11,445 (as at 31-03-2018: 5,00,07,630) Equity Shares of Re. 1 each in Godrej Consumer
Products Ltd. (2,50,03,815 Bonus shares issued during the year) 5,154.43 5,469.08
(ii) 1,06,50,688 Equity Shares of Rs. 5 each in Godrej Properties Limited 867.34 773.13
(iii) 12,000 Equity Shares of Rs. 10 each in Central Bank of India 0.04 0.09
(iv) 52,590 Equity Shares of Rs. 2 each in Housing Development Finance Corporation Limited 10.35 9.60
(v) 68,65,666 Common Shares of par value USD 0.001 in Verseon Corporation USA 52.31 83.59
(2) Investments in Preference Shares

(i) Nil (as at 31-03-2018: 2,01,54,008) 7% Redeemable Preference Shares of Rs. 68 each in
3DPLM Software Solutions Limited (redeemed during the year) - 135.18
130
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
(3) Investments in Tax-Free Bonds

(i) 1,236 National Highway Authority of India Bonds of Rs.1,000 each 0.13 0.14
Total Quoted Non-current Non-Trade Other Investments 6,084.60 6,470.81
(b) Unquoted Investment

1. Investments in Equity Shares
(At Fair Value through Other Comprehensive Income)
(i) 50 Equity Shares of Rs. 50 each in Godrej & Boyce Employees’ Co-operative Consumer
Society Limited* - -
(ii) 1,000 Equity Shares of Rs. 10 each in Super Bazar Cooperative Stores Limited* - -
(iii) 1,000 Equity Shares of Rs. 10 each in Saraswat Co-operative Bank Limited* 0.02 0.02
(iv) 4,000 Equity Shares of Rs. 25 each in The Zoroastrian Co-operative Bank Limited 0.11 0.10
(v) 2 Equity Shares of Rs. 10 each in Brihat Trading Private Limited* - -
(vi) 100 Equity Shares of Rs. 100 each in Gharda Chemicals Limited (Shares have not been
registered in the Holding Company’s name) 0.10 0.10
(vii) 1,823 Equity Shares of Rs.10 each in Edayar Zinc Limited (erstwhile Binani Zinc Limited) - At
Book Value* - -
(viii) 15,000 Equity Shares of Rs. 1,000 each in Global Innovation and Technology Alliance, (a
Limited Company under the purview of Section 8 of the Companies Act, 2013) 1.48 3.41
(ix) 84,375 Equity Shares of Rs. 10 each in Nimbua Greenfield (Punjab) Limited 1.12 1.07
(x) Contribution towards 19.61% of the Capital of Proboscis Inc., USA (25,000 shares of par value
USD 0.01) - -
(xi) 1,400 Shares of Rs. 10 each in Godrej One Premises Management Private Limited* - -
Total Unquoted Non-current Non-Trade Other Investments 2.83 4.70
Grand Total 6,087.43 6,475.51
C. DISCLOSURE
(a) Aggregate Amount of Quoted Investments 6,084.60 6,470.81
(b) Aggregate Amount of Unquoted Investments 2.83 4.70
6,087.43 6,475.51
(c) Aggregate Amount of Impairments in value of Investments - -
4. LOANS (Unsecured, Considered Good)

(a) Deposits 58.65 70.53
Total 58.65 70.53
131
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
5. DEFERRED TAX ASSETS / LIABILITIES AND TAX EXPENSE

(A) Income Taxes
Tax expense recognised in the Statement of Profit and Loss:
Current tax on profits for the year 110.89 155.74
Prior years' current tax adjustments 15.44 (4.64)
Deferred tax (net) (2.41) (15.27)
Prior years' deferred tax adjustments 8.00 -
Total Income Tax expense 131.92 135.83
(B) Tax expense related to items recognised in Other Comprehensive Income: (1.21) 2.24
(C) Reconciliation of effective tax rate:
Profit before tax 335.27 306.58
Tax rate 34.94% 34.61%
Tax at the Company's domestic tax rate 117.16 106.11
Tax effect of:
Tax impact of income not subject to tax (32.76) (19.51)
Impact of 80IC (4.68) (5.86)
Disallowance u/s.14A of expenses (not interest) 0.12 0.09
Adjustment of current tax of prior period 15.44 (7.89)
Tax impact of expenses not subject to tax 0.72 36.47
Tax impact of realised gain on sale of equity shares through OCI 15.23 -
Adjustment for deferred tax of prior period 8.00 -
Tax on share of (Profit)/loss of equity accounted investees 4.68 16.11
Effects of different tax rates in the components (1.51) -
Others 9.53 10.32
131.92 135.83
A subsidiary benefits from the tax holiday available to units set up under section 80IC and 80IE of Income
Act of 1961. These tax holidays are available for a period of 10 years from the date of commencement of
operations
132
5. DEFERRED TAX ASSETS / LIABILITIES AND TAX EXPENSE (contd.) (Rupees in crore)
As at As at
31-03-2019 31-03-2018
Deferred Tax Asset:
Deferred tax liabilities on account of:
(a) Property, Plant and Equipment (169.67) (163.79)
(169.67) (163.79)
Deferred tax assets on account of:
(a) Provision for Leave Encashment 16.34 16.01
(b) Provisions for Expenses 13.14 9.21
(c) Provision for Doubtful Debts/Advances 63.97 57.60
(d) MAT Credit 61.18 110.18
(e) Other Deferred Tax Assets 5.90 6.34
(f) Remeasurement of Defined Benefit Liability 5.18 6.37
(g) Tax Adjustment of prior years 8.00 -
173.71 205.71
Net Deferred Tax Assets as per Balance Sheet 4.04 41.92
Deferred Tax Liability:

Deferred tax liabilities on account of:
(a) Property, Plant and Equipment 0.15 0.14
(b) Others - -
0.15 0.14
Deferred Tax Assets (Net): 3.89 41.78
(D). Movement in Deferred Tax balances:
Net balance Movement during the year As at 31/03/2019

Particulars 01-04-2018 Recognised in Recognised Recognised Foreign Net Deferred Deferred
Statement of in OCI in Equity Currency Tax Asset Tax Liability
profit and loss Translation
Property Plant and Equipment (163.93) (5.89) - - - (169.82) - (169.82)

Provision for Leave Encashment 16.01 0.33 - - - 16.34 16.34 -
Provision for Doubtful Debts/
Advances 57.60 6.37 - - - 63.97 63.97 -
Provisions for Expenses 9.21 3.93 - - - 13.14 13.14 -
Other Deferred Tax Assets 6.34 (2.33) (0.02) 1.87 0.04 5.90 5.90 -
Tax Adjustment of prior years - 8.00 - - - 8.00 8.00 -
Remeasurement of Defined
Benefit Liability 6.37 - (1.19) - - 5.18 5.18 -
(68.40) 10.41 (1.21) 1.87 0.04 (57.29) 112.53 (169.82)
MAT Credit Entitlement * 110.18 (16.00) - - 61.18 61.18
Deferred Tax Assets/(Liabilities) 41.78 (5.59) (1.21) 1.87 0.04 3.89 173.71 (169.82)
* MAT utilised during the year is Rs. 33 crore (previous year: Rs.Nil) and adjustment on account of prior years is Rs. 16 crore
(previous year: Rs. Nil).
Net balance Movement during the year As at 31/03/2018

Particulars 01-04-2017 Recognised in Recognised Recognised Net Deferred Tax Deferred
Statement of in OCI in Equity Asset Tax
profit and loss Liability
Property Plant and Equipment (154.91) (9.02) - - (163.93) - (163.93)
Provision for Leave Encashment 15.00 1.01 - - 16.01 16.01 -
Provision for Doubtful Debts/
Advances 71.04 (13.44) - - 57.60 57.60 -
Provisions for Expenses 7.00 2.21 - - 9.21 9.21 -
Other Deferred Tax Assets 2.84 3.50 - - 6.34 6.34 -
Remeasurement of Defined
Benefit Liability 4.12 0.01 2.24 6.37 6.37 -
MAT Credit Entitlement 79.18 31.00 - 110.18 110.18 -
Deferred Tax Assets/(Liabilities) 24.27 15.27 2.24 - 41.78 205.71 (163.93)
133
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
6. OTHER NON-CURRENT ASSETS

(a) Capital Advances 18.42 16.67
(b) Prepaid Expenses 3.46 5.75
(c) Other Advances 33.06 34.50
Total 54.94 56.92
7. INVENTORIES (At lower of Cost and Net Realisable Value)

(a) Raw Materials (includes raw materials in transit: Rs. 35.08 crore; as
at 31-03-2018: Rs. 36.77 crore) 537.83 554.29
(b) Work-in-Process 124.79 211.32
(c) Finished Goods 722.68 637.51
(d) Stock in Trade (includes goods in transit: Rs. 68.66 crore; as at 31-03-
2018: Rs. 61.37 crore) 533.65 543.35
(e) Spares and Components for after-sales services 94.76 101.16
(f) Consumable Stores and Spares 94.51 52.36
(g) Loose Tools 23.61 18.15
(h) Construction Work-in-Progress [includes goods in transit Rs. Nil (as
at 31-03-2018: Rs. 13.99 crore) 270.59 239.90
Total 2,402.42 2,358.04
The cost of inventories recognised as an expense includes Rs. 112.81
crore (Rs. 82.27 crore as at 31st March, 2018) in respect of write-downs
of inventory to net realisable value.
8. CURRENT INVESTMENTS
(a) Investments in Mutual Funds (At fair value through Statement of
Profit and Loss) 13.26 14.62
Total 13.26 14.62
9. TRADE RECEIVABLES
Secured and Considered Good - -
Unsecured & Considered Good 2,282.29 2,379.19
Doubtful 144.11 165.62
Less: Allowance for bad and doubtful debts (144.11) (165.62)
- -
Total 2,282.29 2,379.19
Note: Secured by Security Deposits collected from customers, letter of
credit or bank guarantees held against them.
134
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
10. CASH AND BANK BALANCES

(A) Cash and Cash Equivalents
(i) Balances with Banks
- Current accounts 89.82 79.46
- Fixed Deposits with Banks having a maturity of less than 3 months 17.16 -
(ii) Cheques on hand 207.66 236.42
(iii) Cash on Hand 1.29 2.18
Total Cash and Cash Equivalents 315.93 318.06
(B) Bank Balances other than Cash and Cash Equivalents
(i) Deposit Accounts with maturity period of more than 3 months,
but less than 12 months 112.52 123.58
(ii) Other earmarked Accounts (Earmarked for Statutory Fixed

Deposit Repayment Reserve and Others net of amounts
utilised for repayment of public deposits.) 18.89 24.29
Total Bank Balance 131.41 147.87
Total 447.34 465.93
11. LOANS
Secured, Considered Good
Unsecured, Considered Good
(a) Loans And Advances:
(i) to Associate 5.77 5.37
(ii) to Others - Considered Good 0.09 0.13
(b) Loans to Employees 0.34 0.33
(c) Other Advances and Deposits 0.84 1.10
Total 7.04 6.93
12. OTHER CURRENT FINANCIAL ASSETS (Unsecured, Considered Good)

(a) Deposits 37.37 33.77
(b) Derivative Asset 5.62 0.39
(c) Convertible Promissory Note subscribed - Urban Electric Power
Inc. (Associate) (Refer Note 44) 13.21 -
(d) Unbilled Revenue - 348.36
Total 56.20 382.52
13. OTHER CURRENT ASSETS (Unsecured, Considered Good)

(a) Advances to Suppliers 112.67 207.55
(b) Balances with Customs, Central Excise, Port Trust and other Authorities 259.79 212.06
(c) Prepaid Expenses 15.22 12.10
(d) Unamortised Guarantee Commission 2.30 1.89
(e) Contract Assets (Refer Note 49) 460.21 -
Less: Expected Credit Loss 31.28
Net Contract Assets 428.93 -
(f) Other Current Assets 148.81 87.77
Total 967.72 521.37
Note: There were no impairment losses recognised on any contract
asset in the reporting period.
135
(Rupees in crore)
14. EQUITY SHARE CAPITAL As at As at

(a) Authorised: 31-03-2019 31-03-2018
(i) 1,100,000 Equity Shares of Rs. 100 each 11.00 11.00
(ii) 900,000 Cumulative Redeemable Preference Shares of Rs. 100 each 9.00 9.00
20.00 20.00
(b) Issued, Subscribed and Paid Up:
678,445 Equity Shares of Rs. 100 each fully paid up 6.78 6.78
(c) Reconciliation of shares outstanding at the beginning and at the end of the year:
As at 31/03/2019 As at 31/03/2018
No. of
Fully paid Equity Shares Shares Rs. in crore No. of Shares Rs. in crore
At the beginning of the year 6,78,445 6.78 6,78,448 6.78
Add: Issued during the year [see note (4) below] - - 1,77,429 1.77
Less: Cancelled during the year [see note (4) below] - - 1,77,432 1.77
At the end of the year 6,78,445 6.78 6,78,445 6.78
(1) The Company does not have any holding company.

(2) Details of Equity Shareholders holding more than 5% shares in the Company are given below:
As at 31/03/2019 As at 31/03/2018
Number % holding Number % holding
(i) Mr. A.B. Godrej individually and as a Trustee of ABG
Family Trust 41,100 6.06% 41,100 6.06%
(ii) Mr. N.B. Godrej individually and as a Trustee of NBG
Family Trust, BNG Family Trust, SNG Family Trust and
HNG Family Trust 1,02,679 15.13% 1,02,679 15.13%
(iii) Ms. S.G. Crishna individually and as a Trustee of SGC
Family Trust and FVC Family Trust 59,373 8.75% 59,373 8.75%
(iv) Ms. Nyrika Holkar individually and as a Trustee of NVC
Family Trust 34,421 5.07% 34,421 5.07%
(v) Mr. J.N. Godrej individually and as a Trustee of JNG
Family Trust, Raika Lineage Trust, The Raika Godrej Family
Trust and Navroze Lineage Trust 93,770 13.82% 93,770 13.82%
(vi) Mr. R.K. Naoroji individually and as a Partner of M/s. RKN
Enterprises 1,04,186 15.36% 1,04,186 15.36%
(vii) Trustees, Pirojsha Godrej Foundation - a public charitable
trust 1,57,500 23.21% 1,57,500 23.21%
3. Terms/rights attached to Equity Shares: The Company has only one class of Equity Shares having a par value of Rs.100 per
share. Each holder of Equity Shares is entitled to one vote per share. Accordingly, all Equity Shares rank equally with regard to
dividend and share in the Company's residual assets. The dividend proposed by the Board of Directors is subject to the approval
of the Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the
Company, the holders of Equity Shares will be entitled to receive the residual assets of the Company, remaining after
distribution of all preferential amounts, in proportion to the number of Equity Shares held.
4. The National Company Law Tribunal, Mumbai Bench had by its Order dated 23rd August, 2017, approved the Scheme of
Amalgamation of Godrej Investments Pvt. Ltd. (GIPL) with the Company. Accordingly, GIPL stood dissolved without being
wound up and the Board of Directors, at their Meeting held on 6th November, 2017 issued 1,77,429 Equity Shares to the
Shareholders of GIPL in lieu of 1,77,432 Equity Shares of Rs.100 each held by GIPL in the Company.
136
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
15. OTHER EQUITY

(a) Capital Reserve 52.75 52.75
(b) Securities Premium Reserve 20.10 20.10
(c) General Reserve 652.92 652.92
(d) Debenture Redemption Reserve 75.00 66.67
(e) Foreign Currency Translation Reserve 59.06 58.98
(f) Legal and Statutory Reserves 0.35 0.34
(g) Retained Earnings 6,966.10 7,081.43
(h) Items of Other Comprehensive Income (FVTOCI) 1,367.96 1,475.16
Total 9,194.24 9,408.35
A. Nature and purpose of reserves
1. Capital Reserve on Account of Business Combination:
Capital reserves is created on Amalgamation. During amalgamation, the excess of net assets
taken, over the cost of consideration paid is treated as capital reserve. Capital Resereve is
also created on Sale of treasury Shares.
2. Securities Premium Reserve:
The amount received in excess of face value of the equity shares is recognised in Securities
Premium Reserve. The reserve can be utilised in accordance with the provisions of the Act.
3. General Reserve:
The Company 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.
Transfer to general reserve is not mandatory under the Act.
4. Debenture Redemption Reserve:
The Company had issued debentures in India and as per the provisions of the Act, is
required to create debenture redemption reserve out of the profits of the Company
available for the payment of dividend.
5. Foreign Currency Translation Reserve:
The translation reserve comprises all foreign currency differences arising from the
translation of the financial statements of foreign operations.
6. Retained Earnings:
Retained earnings are the profits that the Group has earned till date, less any transfers to /
from general reserve, and other comprehensive income, and distribution of dividend and
dividend distribution tax thereon.
16. NON-CURRENT BORROWINGS

(a) Secured Term Loans
(i) Term Loans From Banks 13.51 7.63
13.51 7.63
(b) Debentures - Secured Redeemable Non-Convertible Debentures (NCDs)
(i) 8.90% (3 Years) 2019 Series I Debentures (allotted on 01/03/2016) - 249.54
(ii) 9.00% (5 Years) 2021 Series II Debentures (allotted on 08/03/2016) 249.59 249.42
249.59 498.96
(c) Unsecured
(i) Interest-free Loans under the Sales Tax Deferral Schemes of various State Governments 19.11 29.65
(ii) Fixed Deposits 529.84 265.58
548.95 295.23
Total 812.05 801.82
The Group does not have any default as on the Balance Sheet date in repayment of loan or
Interest.
137
(i) Privately-placed NCDs issued by the Company are secured by a first ranking charge by way of a registered mortgage on the
specified immovable properties of the Company situated at Mumbai. These NCDs are redeemable at par on 22-04-2019 Rs. 250
cr (Series I) and 22-04-2021 Rs. 250 cr (Series II). Out of the Rs. 250 cr (Series I) NCDs, Rs 100 cr were prepaid on 28-03-2019 on
communication from investor "ICICI Prudential Asset Management Company Limited". Interest on these NCDs is payable
quarterly. As per the Companies (Share Capital and Debentures) Rules, 2014, para 18(7), the Company is required to create a
Debenture Redemption Reserve of 25% of the value of debentures; it is also required to invest 15% of the amount of its
debentures maturing during the next financial year. The Company has created a debenture redemption reserve of Rs. 75 crore.
(ii) Term Loan from The Zoroastrian Co-operative Bank Ltd. is secured by way of hypothecation of specified machinery and
equipment. It carries a floating interest rate of 10.50% p.a. (10.50% p.a. as at 31-03-2018), which is 2% p.a. below Bank's
Minimum Lending Rate of 12.50% p.a., subject to a minimum of 9.00% p.a. and a maximum of 12.50% p.a., and was repayable
in 4 quarterly installments (3 installments of Rs. 0.63 crore each and last installment of Rs. 0.66 crore was repaid on
25/03/2019).
(iii) Interest-free Loans under the Sales Tax Deferral Schemes of Maharashtra State Government is payable in annual instalments as
may be prescribed in the Schemes, beginning from 21-04-2019 and continuing upto 21-04-2023.
(iv) Fixed Deposits from employees and public carry interest rates ranging from 7.85% p.a. to 9.75% p.a. payable monthly or half-
yearly, and have a maturity period of 3 years from the respective dates of deposit.
(v) Current maturities of Long-term Borrowings are disclosed under the head "Other Current Financial Liabilities" (Note 22)
(vi) Term loans from banks obtained by subsidiary companies are secured by corporate guarantee given by the Company.
(vii) Other long-term loans pertain to a subsidiary and carry an interest rate of 1.75% p.a.
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
17. OTHER NON-CURRENT FINANCIAL LIABILITIES

(a) Dealers’ Deposits 45.28 42.24
(b) Sundry Deposits and Advances 135.29 122.04
(c) Other Liabilities 2.53 9.46
Total 183.10 173.74
Note: Sundry deposits and advances include a. Rs. 24.80 crore (as at 31-03-2018: Rs. 24.80
crore) received towards hand-over of possession of land to a public utility, and b. Rs. 0.75
crore (as at 31-03-2018: Rs. 0.75 crore) received towards compensation against land
acquired. These amounts have not been adjusted in the accounts in view of pending
suit/proceedings.
18. NON-CURRENT PROVISIONS

(a) Provision for Free Service under Product Warranties 47.05 41.10
(b) Provision for Employee Benefits 40.94 43.71
(c) Provision for Onerous Contracts - -
Total 87.99 84.81
(i) Current provisions are disclosed under the head
"Current Provisions" (Note 24)
138
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
(ii) Movement of Provisions (Non-current and Current) during the year:

(1) Provision for Free Service under Product Warranties:
Opening Balance 66.15 54.06
Add: Provision during the year 64.61 42.37
130.76 96.43
Less: Utilisation during the year 58.53 30.28
Closing Balance 72.23 66.15
19. OTHER NON-CURRENT LIABILITIES

Revenue received in advance 15.05 15.84
Total 15.05 15.84
20. CURRENT BORROWINGS

Secured
(i) Working Capital Facilities from Banks (Net) 328.78 529.24
(ii) Export Credits from Export-Import Bank of India under a revolving credit limit 184.00 338.00
(iii) Term Loan from Banks 113.87 5.15
626.65 872.39
Unsecured
(i) Deposits from Companies 0.25 0.25
(ii) Deposits from Shareholders 176.00 128.50
(iii) Short-term Loans from Banks 120.00 225.01
(iv) Unsecured Negotiable Commercial Paper 600.00 -
(v) Acceptances 89.04 134.87
(vi) Other Borrowings 215.38 114.73
1,200.67 603.36
Total 1,827.32 1,475.75
The Group does not have any default as on the Balance Sheet date in repayment of loan or Interest.
(i) Working Capital Facilities from Banks are secured by a first pari passu charge by way of
hypothecation of inventories and book debts. They carry interest rates ranging from 8.45%
p.a. to 12.80% p.a. and are generally renewable each year.
(ii) Export Credits from Export-Import Bank of India are secured by first equitable mortgage of
specified immovable properties situated at Mumbai. They carry an interest rate ranging
from 8.75% to 9.00% p.a (excluding interest subvention of 3%) and are payable/
renewable after 180/365 days.
(iii) Deposits/Short-term Loans from Companies carry an interest rate of 8.00% p.a. payable
quarterly, and have a maturity period of 6 months from the respective dates of deposit.
(iv) Deposits from Shareholders have a maturity period of 3 months from the respective dates
of deposit, and carry an interest rate of 8.50% p.a. payable at the month-end and at
maturity.
(v) In respect of Negotiable Commercial Paper, the maximum balance outstanding during the
year was Rs. 600 crore (Previous Year: Rs. 600 crore).
(vi) Short-term Loan from Banks carry an interest rate of 8.80% payable after 45 days.
(vii) Other Borrowings are Buyers Credit from Banks, due and payable in foreign currency, and
carry interest rates ranging from 3.21% to 3.28% p.a.
21. TRADE PAYABLES

(a) Due to Micro and Small Enterprises (Refer note below) 100.86 12.18
(b) Other Trade Payables 1,438.23 1,531.82
Total 1,539.09 1,544.00
139
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
Disclosure Under the Micro, Small and Medium Enterprises Developments

Act, 2006 are provided as under for the year 2018-2019, to the extent the
Company has received intimation from the "Suppliers" regarding their status
under the Act.
(i) Principal amount and the interest due thereon remaining unpaid to each
supplier at the end of each accounting year (but within due dates as per the
MSMED Act)
Principal amount due to micro and small enterprise 100.86 12.18
Interest due on above - -
(ii) Interest paid by the Company in terms of Section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006, along-with the amount of the
payment made to the supplier beyond the appointed day during the period
- -
(iii) Interest due and payable for the period of delay in making payment (which
have been paid but beyond the appointed day during the period) but without
adding interest specified under the Micro, Small and Medium Enterprises Act,
2006 0.70 -
(iv) The amount of interest accrued and remaining unpaid at the end of each
accounting year 0.70 -
(v) Interest remaining due and payable even in the succeeding year, until such
date when the interest dues as above are actually paid to the small
enterprises - -
22. OTHER CURRENT FINANCIAL LIABILITIES

(a) Current maturities of long-term borrowings 322.99 429.14
(b) Interest accrued but not due on borrowings 11.99 14.88
(c) Employee benefits payable 255.62 236.54
(d) Unclaimed Fixed Deposits (matured deposits not claimed on due dates) 10.30 7.70
(e) Derivative Liability 8.62 0.55
(f) Other payables 474.14 491.69
Total 1,083.66 1,180.50
Note: (i) There is no amount due and outstanding to be credited to the Investor Education
and Protection Fund, in respect of matured but unclaimed fixed deposits and any
unclaimed interest.
(ii) Other payables include accrued expenses and creditors for capital procurement
23. OTHER CURRENT LIABILITIES

(a) Contract Liability (Advances from Customers and Deferred Revenue) 857.54 823.04
(b) Statutory dues including provident fund and tax deducted at source 86.94 98.80
(c) Others 3.13 4.68
Total 947.61 926.52
Note: The above amount of Deferred Revenue of Rs. 12.28 crore (previous year Rs.
15.54 crore) is the revenue recognised in the reporting period that was
included in the contract liability balance at the beginning of the period.
24. CURRENT PROVISIONS

(a) Provision for Employee Benefits 8.94 6.68
(b) Provision for Free Service under Product Warranties 25.19 25.05
(c) Provision for loss on onerous contracts 3.50 7.17
(d) Other Provisions - 0.14
Total 37.63 39.04
140
(Rupees in crore)
As at As at
31/3/2019 31/3/2018
25. CONTINGENT LIABILITIES AND COMMITMENTS
1. Performance Guarantees given by the Company’s Bankers against counter-guarantees

given by the Company 1,631.63 1,414.09
2. Guarantees given by the Company’s Bankers on behalf of subsidiary / associate
companies against counter-guarantees given by the Parent Company 0.22 0.22
3. Corporate Guarantees given to Bankers to secure credit facilities extended by them to
a subsidiary and an associate company 235.64 155.53
4. Guarantees given by Export-Import Bank of India, against the security of first equitable
mortgage of specified immovable properties situated at Vikhroli, Mumbai
100.63 213.16
5. Claims against the Company not acknowledged as debts
(a) Excise Duty/Customs Duty/Service Tax/Sales Tax/Property Tax /Octroi / Other Duty
demands in dispute and pending at various stages of appeal 120.49 93.40
(b) The State of Maharashtra has filed a suit against the Company, being Suit No. 679 of
1973, in the High Court of Judicature at Bombay, claiming ownership of part of the
Company’s lands at Vikhroli, Mumbai. In the said Suit, which is still pending, various
claims have been raised, which are and not acknowledged as debts due by the
Company. According to the Company's legal advisers, the Company has a complete
defence against the plaintiff in the said Suit, and the said Suit is not sustainable.
(c) Claims against the Group under the Industrial Disputes Act, 1947 - -
(d) Disputed Provident Fund liability for the period March 1996 to September on account
of disapproval of infancy benefit. The Supreme Court of India has allowed the
Company's appeal and set aside the judgment of the High Court of Punjab & Haryana;
the matter has been remanded to the Regional Provident Fund Commissioner for a
fresh decision in accordance with law after hearing the parties concerned,
expeditiously. 0.54 0.50
(e) Other Claims against the Group not acknowledged as debt 0.58 0.58
6. Estimated amount of contracts remaining to be executed on Capital Account and not
provided for Rs. 129.11 crore (as at 31-03-2018: Rs. 135.22 crore). 129.11 135.22
Note: Future cash outflows in respect of items 5 (b) and (c) above are determinable
only on receipt of judgements/decisions pending with various forums/authorities.
(Rupees in crore)
26 A. REVENUE FROM OPERATIONS

(a) Sale of Products 8,976.67 8,837.46
(b) Sale of Services 2,068.99 948.30
Net Sales (Products and Services) 11,045.66 9,785.76
(c) Other Operating Revenue:
(i) Scrap Sales 99.96 106.20
(ii) Leave and License Dues and Rent 31.99 29.01
(iii) Export Incentives 24.42 16.09
(iv) Sundry Receipts 29.84 29.66
186.21 180.96
141
(Rupees in crore)
Consequent to the introduction of Goods and Service Tax (GST) with effect from 1st July,
2017, Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST. In
accordance with Indian Accounting Standard - 115 on Revenue and Schedule III of the
Companies Act, 2013, unlike Excise Duties, levies like GST, VAT etc. are not part of Revenue.
Accordingly, the figures for the year ended 31st March, 2019 are not strictly relatable to
previous year.
The following additional information is being provided to facilitate such understanding:
Revenue from Operations (A) 11,231.87 9,966.72
Excise Duty on Sale (B) - 152.86
Revenue from Operations excluding excise duty on sale (A-B) 11,231.87 9,813.86
26 A. DISAGGREGATION OF REVENUE
(a) Consumer Durables
At a point in time 6,915.06 6,294.69
Over time 216.76 155.94
Total 7,131.82 6,450.63
(b) Industrial Products
At a point in time 1,534.37 1,327.05
Over time 1,801.83 1,410.86
Total 3,336.20 2,737.91
(c) Others
At a point in time 577.64 597.22
Over time - -
Total 577.64 597.22
27. OTHER INCOME

(a) Interest Income 21.38 17.21
(b) Dividend Income 93.29 56.92
(c) Profit on Sale of Current Investments (Net) 1.63 10.84
(d) Excess provisions of previous years written back (net) - 0.28
(e) Share of Profit in a firm (LLP) 0.35 0.36
(f) Profit on Sale/Disposal of Fixed Assets (Net) - 6.50
(g) Net foreign exchange gains - 16.49
(h) Miscellaneous non-operating Income 1.13 0.18
Total 117.78 108.78
28. COST OF MATERIALS CONSUMED

Stocks of Raw Materials at the beginning of the year 554.29 412.64
Add: Raw Materials purchased during the year 2,722.06 2,915.13
3,276.35 3,327.77
Less: Sale of Raw Materials 178.81 91.43
Less: Stocks of Raw Materials at the close of the year 548.34 554.29
Add: Reduction pursuant to loss of control of a subsidiary - -
Net Stock of Raw Material at the end of the year 548.34 554.29
Total 2,549.20 2,682.05
142
(Rupees in crore)
29. PURCHASES OF STOCK-IN-TRADE (TRADED GOODS)

(a) Consumer Durables 2,827.07 2,186.65
(b) Industrial Products 603.00 373.92
(c) Licenses 11.63 2.55
(d) AMC Services 1.07 3.99
(e) Others 86.46 78.75
Total 3,529.23 2,645.86
30. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROCESS AND STOCK-IN-TRADE

(a) Stocks at the beginning of the year:
(i) Finished Goods* 738.68 1,043.18
(ii) Stock-in-Trade 543.35 -
(iii) Work-in-Process 211.32 387.26
1,493.35 1,430.44
Less: Stock Adjustment for subsidiaries merged - -
1,493.35 1,430.44
(b) Less: Stocks at the end of the year:
(i) Finished Goods* 817.45 738.68
(ii) Stock-in-Trade 533.65 543.35
1,351.10 1,282.03
(iii) Work-in-Process 124.79 211.32

Net Stocks at the end of the year 124.79 211.32
1,475.89 1,493.35
17.46 (62.91)
Net change in Excise Duty on Finished Goods - (3.95)
Total 17.46 (66.86)
* including stocks of Traded Goods, Spares and Components for after-sales service
31. PROPERTY DEVELOPMENT AND CONSTRUCTION EXPENSES (COMMERCIAL PROJECTS)

(a) Construction Work-in-Progress at the beginning of the year 239.90 277.84
(b) Add: Project Expenses incurred during the year:
(i) Development and Construction Expenses 988.71 690.31
(ii) Employee Remuneration and Benefits 53.27 44.96
(iii) Professional Charges - 3.47
(iv) Others 29.09 77.39
1,071.07 816.13
(c) Less: Construction Work-in-Progress at the end of the year (270.59) (239.90)
Total 1,040.38 854.07
143
(Rupees in crore)
Current Year Current Year
32. EMPLOYEE BENEFITS EXPENSE

(a) Salaries, Wages and Bonus 1,194.09 1,099.24
(b) Company’s contribution to Employees’ Provident and other Funds 55.02 48.15
(c) Company’s contribution to Employees’ Gratuity Trust Fund 15.27 13.44
(d) Workmen and Staff Welfare Expenses 27.99 31.56
(e) Voluntary Retirement Compensation 0.23 0.17
Total 1,292.60 1,192.56
33. FINANCE COSTS

(a) Interest on Term Loans 48.65 46.95
(b) Interest on Fixed Deposits and other Unsecured Loans 57.67 66.66
(c) Other Interest costs 116.89 87.44
223.21 201.05
(d) Less: Adjustments for Interest Capitalised 55.29 32.66
167.92 168.39
(e) Finance Charges 12.16 9.33
(f) Net (gain) / loss on foreign currency transactions/translations (attributable to finance
costs) (9.03) 7.47
Total 171.05 185.19
34. OTHER EXPENSES

(a) Stores, Spare Parts and Other Materials consumed 179.95 125.68
(b) Power and Fuel 148.51 138.44
(c) Rates and Taxes 36.45 48.29
(d) Insurance 15.18 14.74
(e) Repairs and Maintenance of Buildings 44.61 29.17
(f) Repairs and Maintenance of Machinery 11.81 11.21
(g) Repairs & Maintenance - Others (Net) 0.41 0.16
(h) Technical Fees 10.62 4.06
(i) Royalty 2.45 1.46
(j) Rent [Note 45 (a)] 137.52 112.49
(k) Establishment and Other Expenses [Note 45 (a)] 505.51 377.10
(l) Donations and Contributions 1.40 0.92
(m) Motor Car and Lorry Expenses [Note 45 (a)] 15.87 24.22
(n) Freight, Transport and Delivery Charges 507.23 449.40
(o) Advertisement and Publicity 294.71 245.41
(p) Commission 51.29 37.04
(q) Professional Fees 154.12 118.74
(r) CSR Expenses 5.78 4.73
(s) Bad Debts/Advances written off 13.03 62.66
(t) Allowances for doubtful debts, advances and contract assets 13.17 26.37
(u) Provision for Free Service under Product Warranties 5.02 11.52
(v) Loss on Sale/Disposal of Fixed Assets (Net) 0.48 -
(w) Selling and Distribution Expenses 3.42 3.80
(x) Impairment of Goodwill - 72.55
(y) Net foreign exchange losses 15.40 -
(z) Loss due to natural causes 3.99 -
Total 2,177.93 1,920.16
144
(Rupees in crore)
Current Year Current Year
Note: Research and Development expenses for the year amounting to Rs. 70.41 crore
(previous year: Rs. 53.72 crore) have been charged to the Statement of Profit and Loss
under the various heads of account.
35. EXCEPTIONAL ITEMS

(a) Profit on sale of TDR - 2.66
Total - 2.66
36. DISCLOSURE IN RESPECT OF PROPERTY DEVELOPMENT PROJECTS AND CONSTRUCTION

CONTRACTS
(a) Contract revenue recognised and shown under Sales for the year 1,146.25 931.56
(b) For all contracts in progress at the year-end:
(i) Aggregate amount of costs incurred and profits recognised (less recognised losses)
upto the balance sheet date 1,798.46 1,969.64
(ii) Advances received from customers as at the balance sheet date 441.37 214.53
(iii) Work-in-Progress at the end of the year 270.53 239.90
(iv) Excess of revenue recognised over actual bills raised 455.90 346.52
(v) Gross amount due from customers as at the balance sheet date 451.61 376.34
(c) The Company follows the Percentage of Completion Method to determine the project
revenue to be recognised for the year.
(d) The Company follows the Project Costs Incurred Method to determine the stage of
completion of each project.
37. EARNINGS PER SHARE

(a) Profit after Taxes for the Year attributable to Equity Shareholders 207.52 194.71
(b) Number of Equity Shares of Rs.100 each issued and outstanding:
(i) At the end of the year 6,78,445 6,78,445
(ii) Weighted average number of Shares outstanding during the year 6,78,445 6,78,445
(c) Basic and Diluted Earnings per Share (a/b) (Statement of Profit and Loss, item XII) Rs. 3,059 Rs. 2,870
145
(Rupees in crore)
38. DETAILS OF EMPLOYEE BENEFITS:
(a) DEFINED BENEFIT PLAN - PROVIDENT FUND:
Amount contributed by the Company to the Employees’ Provident and other Funds
recognized as an expense and included under Employee Benefits Expense 48.56 44.56
The amount recognised in the Group Financial Statements as at the year end are as under :
(a) DEFINED BENEFIT PLAN – GRATUITY:
(i) Change in Defined Benefit Obligation :
Liability at the beginning of the year 187.14 178.21
Benefit paid (13.75) (23.44)
Actuarial (gain)/loss on obligations (2.80) 7.50
(ii) Changes in Fair Value of Plan Assets:

Fair value of plan assets at the beginning of the year 166.08 158.41
Assets transferred in / Acquisitions 0.11 0.35
Expected return on plan assets 13.06 11.45
Contributions by Employer 20.42 18.33
Benefit paid (13.75) (23.44)
Actuarial (gain)/loss on plan assets 0.38 0.98
Total actuarial gain/(loss) to be recognized 3.18 (6.52)
(iii) Amount recognised in the Balance Sheet:

Funded status - Deficit / (Surplus) (12.72) (21.06)
Amount recognised in the Balance Sheet (12.72) (21.06)
(iv) Expense recognised in the Statement of Profit and Loss:

Expected return on plan assets (13.06) (11.45)
Total Expense recognised in the Statement of Profit and Loss 15.37 13.42
(v) Amounts Recognised in other comprehensive income for the year:

Actuarial (gain)/loss on obligations (2.81) 7.50
Return on plan assets excluding interest income (0.42) (1.04)
Amount recognised in other comprehensive income (3.23) 6.46
(vi) Actuarial Assumptions:

Discount rate 7.69% 7.83%
Rate of return on plan assets 7.69% 7.83%
Salary escalation 7.50% 8.00%
(vii) Estimated Contribution to be made in next financial year 23.25 24.27
146
(b) GENERAL DESCRIPTION OF DEFINED BENEFIT PLAN – GRATUITY:

Gratuity is payable to all eligible employees of the Company on superannuation, death or permanent disablement, in terms of the
provisions of the Payment of Gratuity Act, 1972, or as per the Company’s Scheme, whichever is more beneficial.
(c) SENSITIVITY ANALYSIS

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions constant, would have affected the defined
benefit obligation by the amounts shown below:
(Rupees in crore)
Discount Rate (1% movement) (12.56) 14.53 (14.42) 16.93
Future Salary Growth (1% movement) 14.41 (12.69) 16.73 (14.53)
Rate of Employee Turnover (1% movement) 0.08 (0.10) (0.38) 0.42
(d) DEFINED BENEFIT OBLIGATIONS -

YEAR ENDING 31-MARCH (Rupees in crore)
2020 34.57
2021 13.80
2022 18.15
2023 16.84
2024 16.31
Thereafter 78.18
Gratuity is a defined benefit plan and company is exposed to the following risks:
Interest rate risk:

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher
provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of
asset.
Salary Risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an
increase in the salary of the members more than assumed level will increase the plan's liability.
Investment Risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities,
and other debt instruments.
Asset Liability Matching Risk:

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules,
1962, this generally reduces ALM risk.
Mortality risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any
longevity risk.
147
39. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT

(I). A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy. It does not include 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.
(Rupees in crore)
Carrying amount Fair value
Cost Carrying
Value
Financial assets
Non-current
Other investments *
Loans - - 58.65 58.65 - - - -
Current
Current Investments 13.26 - - 13.26 13.26 - - 13.26
Bank balances others - - 131.41 131.41 - - - -
Loans - - 7.04 7.04 - - - -
Other Current Financial Assets - - 50.58 50.58 - - - -
18.88 6,087.43 2,845.90 8,952.21 6,097.86 5.62 2.83 6,106.31
Non-current
Borrowings - - 812.05 812.05 - - - -
Current
Borrowings - - 1,827.32 1,827.32 - - - -
Trade Payables - - 1,539.09 1,539.09 - - - -
Other financial liabilities - - 1,075.04 1,075.04 - - - -
Derivative liability 8.62 - - 8.62 - 8.62 - 8.62
8.62 - 5,436.60 5,445.22 - 8.62 - 8.62
148

(Rupees in crore)
Carrying amount Fair value
Cost Carrying
Value
Financial assets
Non-current
Other investments *
Quoted Others - 135.32 - 135.32 135.32 - - 135.32
Loans - - 70.53 70.53 - - - -
Current
Current Investments 14.62 - - 14.62 14.62 - - 14.62
Bank balances others - - 147.87 147.87 - - - -
Loans - - 6.93 6.93 - - - -
Other Current Financial Assets - - 382.13 382.13 - - - -
15.01 6,475.51 3,304.71 9,795.23 6,485.43 0.39 4.70 6,490.52
Non-current
Borrowings - - 801.82 801.82 - - - -
Current
Borrowings - - 1,475.75 1,475.75 - - - -
Trade Payables - - 1,544.00 1,544.00 - - - -
Other financial liabilities - - 1,179.95 1,179.95 - - - -
Derivative liability 0.55 - - 0.55 - 0.55 - 0.55
0.55 - 5,175.26 5,175.81 - 0.55 - 0.55
149
FVTPL - Fair Value Through Profit and Loss

FVTOCI - Fair Value Through Other Comprehensive Income
* The fair value in respect of the unquoted equity investments cannot be reliably estimated. The Company has currently measured them
at net book value as per the latest audited financial statements available.
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).
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.
Reconciliation of level 3 fair values
Particulars (Rupees in crore)
As at 31/3/2018 4.70
Net change in fair value (unrealised) (1.87)
As at 31/3/2019 2.83
(1) Assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses,
advances paid and certain other receivables) amounting to Rs. 1022.66 crore as at 31-03-2019 and Rs. 578.29 crore as at 31-03-2018,
respectively, are not included.
(2) Other liabilities that are not financial liabilities (such as statutory dues payable, deferred revenue, advances from customers and certain
other accruals) amounting to Rs. 962.66crore as at 31-03-2019 and Rs. 942.36 crore as at 31-03-2018, respectively, are not included.
(I). B. Measurement of fair values

Valuation techniques and significant unobservable inputs:
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant
unobservable inputs used.
Financial instruments measured at fair value
Type Valuation technique
Non-Current Investments - quoted The use of quoted market prices
Non-Current Investments - unquoted Net book value based on the last available financial statements
Forward contracts The fair value is determined using forward exchange rates at the reporting
dates.
(I). C. Financial risk management

The Group has exposure to the following risks arising from financial instruments:
▪ Credit risk ;
▪ Liquidity risk ; and
▪ Market risk
Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring
the Company’s risk management policies. The committee reports regularly to the board of directors on its activities.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect
changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures,
aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and
reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in
its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,
the results of which are reported to the audit committee.
150
(II). Liquidity risk

Liquidity risk is the risk that the Group will encounter, in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
The Group also monitors the level of expected cash inflows on trade receivables together with expected cash outflows on trade
payables.
Exposure to liquidity risk

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
The Group also monitors the level of expected cash inflows on trade receivables together with expected cash outflows on trade
payables.
This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
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.
(Rupees in crore)
Borrowings 2,389.78 2,389.78 1,713.60 127.23 545.25 3.70 -
Debentures 249.59 249.59 - - 249.59 - -
Trade Payables 1,539.09 1,539.09 1,539.09 - - - -
Other Financial Liabilities 1,266.76 1,266.76 1,083.66 - 183.10 - -
(Rupees in crore)
Borrowings 1,778.61 1,778.61 1,408.27 87.63 262.85 19.86 -
Debentures 498.96 498.96 - - 249.54 249.42 -
Trade Payables 1,544.00 1,544.00 1,544.00 - - - -
Other Financial Liabilities 1,354.24 1,354.24 1,167.99 - 186.25 - -
151
(III). 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, 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.
Price risk
A Subsidiary invests its surplus funds in various debt instruments including liquid and short term schemes of debt mutual funds,
deposits with banks and financial institutions 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 Subsidiary by investing the funds in various tenors depending on the liquidity needs of the
Subsidiary.
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 and receivables 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 rupee against foreign currencies.
Following is the derivative financial instruments to hedge the foreign exchange rate risk as of:
Exposure to currency risk
The currency profile of financial assets and financial liabilities as at 31/03/2019 and 31/03/2018 are as below:
(Rupees in crore)
As at 31/03/2019 USD EURO GBP Others
Financial Assets
Trade Receivables 148.74 6.65 3.19 7.00
Less: Forward contracts for trade receivables (24.24) (0.77) - -
Cash and Cash Equivalents 17.97 - - -
142.47 5.88 3.19 7.00
Trade Payables 326.16 41.01 1.20 2.61
Less: Forward contracts for trade payables (235.76) - - -
Term Loans 5.58 - - -
95.98 41.01 1.20 2.61
152
(Rupees in crore)
As at 31/03/2018 USD EURO GBP Others
Financial Assets
Trade Receivables 187.93 9.20 2.57 8.46
Less: Forward contracts for trade receivables (39.36) (3.00) - -
Cash and Cash Equivalents 18.60 - - -
167.17 6.20 2.57 8.46
Trade Payables 533.24 59.44 6.67 8.52
Less: Forward contracts for trade payables (258.54) - - -
Term Loans 5.15 - - -
279.85 59.44 6.67 8.52
Year-end spot rate

(Rupees) 31-03-2019 31-03-2018
USD 1 69.16 65.18
EUR1 77.67 80.81
GBP1 90.53 92.28
Sensitivity analysis
A reasonably possible 3% strengthening (weakening) of the Indian Rupee against USD/GBP/Euro at 31st March would have affected
the measurement of financial instruments denominated in USD/GBP/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.
(Rupees in crore)
as at 31/03/2019 as at 31/03/2018
Profit or loss Profit or loss
Effect Strengthening Weakening Strengthening Weakening
USD - 3% movement 1.39 (1.39) (3.38) 3.38
EUR - 3% movement (1.05) 1.05 (1.60) 1.60
GBP - 3% movement 0.06 (0.06) (0.12) 0.12
153
(IV) Interest rate risk

The Group’s exposure to market risk for changes in interest rates relates to fixed deposits and borrowings
from financial institutions. It is the Company’s policy to obtain the most favourable interest rate available,
and to retain flexibility of fund-raising options in future between fixed and floating rates of interest, across
maturity profiles and currencies.
Exposure to interest rate risk

The Group’s interest rate risk arises from borrowings. Borrowings issued at floating rates exposes to fair
value interest rate risk. The interest rate profile of the Group’s interest-bearing financial instruments as
reported to the management of the Group is as follows.
Rupees in Crore
Nominal amount As at As at
31-03-2019 31-03-2018
Borrowings
Fixed-rate borrowings 2,567.09 2,229.09
Variable-rate borrowings 72.28 48.48
Total 2,639.37 2,277.57
Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates 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.
Profit or loss
As at 31/03/2019
Profit or loss
As at 31/03/2018
Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or 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.
154
(V). Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group's receivables from customers and investments in debt securities.
The carrying amount of financial assets represents the maximum credit exposure.
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 from its investing activities including
investments in mutual funds, 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 credit worthiness 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.
Trade receivables
Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this, the
businesses periodically assesses the financial reliability of customers, taking into account the financial condition, current
economic trends, analysis of historical bad debts and ageing of accounts receivable.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade
receivables.
Impairment
The ageing of trade receivables that were not impaired was as follows.
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
Neither past due nor impaired 1,678.33 1,409.17
More than 6 months and less than 1 year 111.96 232.70
More than 1 year 492.00 737.32
2,282.29 2,379.19
Management believes that the unimpaired amounts that are past due by more than 6 months 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 movement in the allowance for impairment in respect of trade receivables during the year was as follows:
Loans and advances given are monitored by the Group on a regular basis and these are neither past due nor impaired.
(Rupees in crore)
Collective impairments
Balance as at 31/03/2018 215.56
Impairment loss recognised 13.17
Balance as at 31/03/2019 228.73
Amounts written off as at 31/03/2019 13.03
Amounts written off as at 31/03/2018 62.66
155
40. CAPITAL MANAGEMENT
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level
of dividends to ordinary shareholders.
The board of directors seeks to maintain a balance between the higher returns that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position.
The Group monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is
defined as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents. The
Group's adjusted net debt to equity ratio for 3 years is given below:
(Rupees in crore)
As at As at
31-03-2019 31-03-2018
Non-current borrowings 812.05 801.82

Current borrowings 1,827.32 1,475.75
Current maturity of long-term borrowings 322.99 429.14
Gross Debt 2,962.36 2,706.71
Less : Cash and cash equivalent 315.93 318.06
Less : Other bank deposits 131.41 147.87
Less : Current Investments 13.26 14.62
Adjusted net debt 2,501.76 2,226.16
Total equity 9,185.65 9,398.36

Adjusted net debt to equity ratio 0.27 0.24
156
41. ADDITIONAL INFORMATION ABOUT BUSINESS SEGMENTS

Consumer Industrial Others Corporate/ Total Consumer Industrial Others Corporate/ Total
Durables Products Unallocated Company Durables Products Unallocated Company
REVENUE
Domestic Sales 6,885.23 2,823.13 570.44 - 10,278.80 6,273.39 2,258.61 597.03 - 9,129.03
Export Sales 246.59 513.07 7.20 - 766.86 177.24 479.30 0.19 - 656.73
SALE OF PRODUCTS AND SERVICES (Gross) 7,131.82 3,336.20 577.64 - 11,045.66 6,450.63 2,737.91 597.22 - 9,785.76
Inter-Segment Transfers 11.76 111.52 3.24 - 126.52 58.17 69.38 2.22 - 129.77
Other Operating Revenue 89.70 94.11 2.40 - 186.21 87.40 91.54 2.02 - 180.96
SEGMENT REVENUE 7,233.28 3,541.83 583.28 - 11,358.39 6,596.20 2,898.83 601.46 - 10,096.49
Less: Inter-Segment Revenue (126.52) (129.77)
TOTAL REVENUE 11,231.87 9,966.72
RESULTS FROM OPERATIONS

Profit before Corporate / Common Expenses,
642.87 240.88 286.39 - 1,170.14 663.16 195.62 238.54 - 1,097.32
Interest, Depreciation and Amortization
gc
Depreciation 119.55 72.74 30.91 - 223.20 107.08 66.28 30.48 - 203.84
SEGMENT RESULTS (Profit before Corporate /
523.32 168.14 255.48 - 946.94 556.08 129.34 208.06 - 893.48
Common Expenses and Interest)
Add: Income from Dividends 93.29 56.92
Total Profit/(Loss) on Sale of Fixed Assets (Net) - 6.50
Total Profit on Sale of Investments (Net) - -
1,040.23 956.90
Less: Interest (Net of Interest Income) 149.67 167.98
Less: Other Unallocated Corporate /
(538.80) (469.96)
Common Expenses
Add/(Less): Exceptional Items - 2.66
Less: Share of Profit/(Loss) in Associate (16.58) (15.04)
Provision for Taxes 131.92 135.83
PROFIT FOR THE YEAR 203.26 170.75
CAPITAL EMPLOYED (at the end of the year)

k+fa Segment Assets 3,940.33 2,576.28 162.82 2,914.62 9,594.05 3,633.34 2,342.83 146.61 2,960.76 9,083.54
o Segment Liabilities 1,253.04 1,092.62 61.62 4,126.52 6,533.80 1,337.00 870.85 61.52 3,985.17 6,254.54
SEGMENT CAPITAL EMPLOYED (Segment
nda 2,687.29 1,483.66 101.20 (1,211.90) 3,060.25 2,296.34 1,471.98 85.09 (1,024.41) 2,829.00
Assets - Segment Liabilities)
Investments 6,121.51 6,527.58
Add/(Less): Deferred Tax Asset / (Liabilities)
3.89 41.78
(Net)
TOTAL CAPITAL EMPLOYED (NET ASSETS) (as
9,185.65 9,398.36
per Balance Sheet)
CAPITAL EXPENDITURE
TOTAL CAPITAL EXPENDITURE (as per Balance
269.56 87.84 5.00 244.97 607.37 152.15 95.77 4.94 214.30 467.16
Sheet)
Business Segments
The Indian Accounting Standard 108 (Ind AS-108) on “Segment Reporting” requires disclosure of segment information to facilitate better understanding of the
performance of an enterprise’s business operations.
The Company has identified Business Segments to comply with the operating segment disclosures as per Ind AS-108, considering the organization structure,
internal financial reporting system, and the risk-return profiles of the businesses. The Company’s organisation structure and management processes are
designed to support effective management of multiple businesses while retaining focus on each one of them.
(a) Identification of Business Segments
The Consumer Durables segment includes Furniture, Office Equipment, Home Appliances, Locks and Security Equipment. The Industrial Products segment
includes Process Plant and Equipment, Toolings, Special Purpose Machines, Precision Components/Engineering, Electricals and Electronics, Electric Motors,
Storage Solutions and Material Handling Equipment. Estate leasing, Property Development and Ready-mix concrete operations are included in Other Segment.
(b) Segment Revenue, Results, Assets and Liabilities

Segment revenue and results are arrived at based on amounts identifiable to each of the segments. Inter-segment transfers are valued at cost or market-based
prices, as may be negotiated between the segments with an overall optimization objective for the Company. Other unallocated expenses include corporate
expenses, as well as expenses incurred on common shared-services provided to the segments. Segment assets include all operating assets used by the business
segment and consist mainly of net fixed assets, debtors and inventories. Segment liabilities primarily include creditors and advances from customers.
Unallocated assets mainly relate to the factory, administrative, employee welfare, and marketing infrastructure at Vikhroli, Mumbai and at up-country
establishments, not directly identifiable to any business segment. Liabilities which have not been identified between the segments are shown as unallocated
liabilities.
157
42. DISCLOSURES OF JOINT VENTURES AND ASSOCIATES :
1 Equity accounted investees
Financial information of joint ventures and associates that are material to the Group is provided below :
(Rupees in crore)
Name of the entity Place of business % of ownership Relationship Accounting Carrying Amounts
interest method 31-03-2019 31-03-2018
Godrej Consoveyo Logistics Automation Ltd. India 49.00% Joint Venture Equity method 3.96 8.16
Godrej UEP (Singapore) Pte. Ltd. Singapore 50.00% Joint Venture Equity method 0.47 0.48
Urban Electric Power Inc., USA USA 23.76% Associate Equity method 1.79 11.73
Godrej and Khimji (ME) LLC Oman 49.00% Associate Equity method 11.22 14.05
Parazelsus Orient Ltd. British Virgin 30.00% Associate Equity method - -
Islands
Godrej and Boyce Enterprises LLP India 50.00% Associate Equity method - -
Future Factory LLP India 20.00% Associate Equity method 3.38 3.03
Total equity accounted investments 20.82 37.45
(Rupees in crore)
Godrej Consoveyo Logistics Urban Electric Power Inc., USA
Automation Ltd.
Particulars As at As at As at As at
31/03/2019 31/03/2018 31/12/2018 31/12/2017
Ownership 49% 49% 23.76% 23.91%
Cash and cash equivalent 0.06 0.01 2.50 -
Other current assets 46.51 69.48 4.70 9.59
Total current assets 46.57 69.49 7.20 9.60
Total non-current assets 12.01 7.66 19.17 21.42
Total assets 58.58 77.15 26.37 31.02
Current liabilities
Financial liabilities (excluding trade payables and
provisions) 15.81 18.76 45.16 47.85
Other liabilities 34.04 41.20 28.06 18.67
Total current liabilities 49.85 59.96 73.22 66.52
Non Current liabilities
Other liabilities 0.61 0.54 1.24 3.20
Total non current liabilities 0.61 0.54 1.24 3.20
Total liabilities 50.46 60.50 74.46 69.72
Net assets 8.12 16.65 (48.09) (38.70)
Groups' share of net assets 3.98 8.16 (11.43) (9.25)
Carrying amount of interest in Associate / Joint Venture 3.96 8.16 1.79 11.73
(Rupees in crore)
Godrej Consoveyo Logistics Urban Electric Power Inc., USA
Automation Ltd.
Particulars Year ended Year ended Year ended Year ended
31/03/2019 31/03/2018 31/12/2018 31/12/2017
Revenues 53.94 104.43 22.09 4.92
Interest income 0.10 0.04 - -
Depreciation and amortisation 0.29 0.47 5.43 4.90
Interest expense 1.84 0.25 2.90 1.06
Income tax expense 2.52 2.20 - -
Loss from continuing operations (8.57) (4.48) (34.80) (49.42)
Profit from discontinued operations - - - -
Loss for the year (8.57) (4.48) (34.80) (49.42)
Other comprehensive income 0.04 (0.01) - -
Total comprehensive income (8.53) (4.49) (34.80) (49.42)
Group's share of profit (4.20) (2.20) (8.27) (11.82)
Group's share of Other comprehensive income 0.02 - - -
Group's share of Total comprehensive income (4.18) (2.20) (8.27) (11.82)
158
42. DISCLOSURES OF JOINT VENTURES AND ASSOCIATES : (continued)

(Rupees in crore)
Godrej Khimji (M.E.) LLC. Parazelsus Orient Ltd Godrej UEP (Singapore) Pte.
Ltd.
Particulars As at As at As at As at As at As at
31/12/2018 31/12/2017 31/12/2018 31/12/2017 31/12/2018 31/12/2017
Ownership 49% 49% 30.00% 30.00% 50.00% 50.00%
Other current assets 17.15 16.64 30.72 28.53 28.17 1.00
Total current assets 17.15 16.64 30.72 28.53 28.17 0.99
Total non-current assets 29.17 29.94 - 2.35 - -
Total assets 46.32 46.58 30.72 30.88 28.17 0.99
Current liabilities
Other liabilities 20.18 14.74 47.26 39.73 27.23 0.03
Total current liabilities 20.18 14.74 47.26 39.73 27.23 0.03
Financial liabilities (excluding trade payables and
provisions) - - - - - -
Other liabilities 3.25 3.16 - - - -
Total non current liabilities 3.25 3.16 - - - -
Total liabilities 23.43 17.90 47.26 39.73 27.23 0.03
Net assets 22.89 28.68 (16.54) (8.85) 0.94 0.96
Groups' share of net assets 11.22 14.05 (4.96) (2.66) 0.47 0.48
Carrying amount of interest in Associate / Joint Venture 11.22 14.05 - - 0.47 0.48
(Rupees in crore)
Godrej Khimji (M.E.) LLC. Parazelsus Orient Ltd Godrej UEP (Singapore) Pte.
Ltd.
Particulars As at As at As at As at As at As at
31/12/2018 31/12/2017 31/12/2018 31/12/2017 31/12/2018 31/12/2017
Revenues 25.00 24.80 - 0.45 - 0.07
Interest income - - - - - -
Depreciation and amortisation 3.56 3.33 - - - -
Interest expense 0.87 0.72 - - - -
Income tax expense - - - - 0.00
Profit / (Loss) from continuing operations (7.94) (5.14) (6.36) (1.84) (0.08) 0.02
Profit from discontinued operations - - - - - -
Profit / (Loss) for the year (7.94) (5.14) (6.36) (1.84) (0.08) 0.02
Other comprehensive income - - - (0.02) (0.01)
Total comprehensive income / expense (7.94) (5.14) (6.36) (1.84) (0.10) 0.01
Group's share of profit / (loss) (3.89) (2.52) (1.91) (0.55) (0.04) 0.01
Group's share of Other comprehensive income - - - - (0.01) (0.00)
Group's share of Total comprehensive income / (expense) (3.89) (2.52) (1.91) (0.55) (0.05) 0.01
159
(Rupees in crore)
Future Factory LLP Godrej and Boyce Enterprises
LLP
31/03/2019 31/03/2018 31/03/2019 31/03/2018
Ownership 20% 20% 50% 50%
Cash and cash equivalent 8.21 7.06 - -
Other current assets 4.78 3.67 - -
Total current assets 12.99 10.73 - -
Total non-current assets 0.82 0.91 - -
Total assets 13.81 11.64 - -
Current liabilities
Financial liabilities (excluding trade payables and provisions) 0.89 0.55 - -
Other liabilities 1.19 0.77 - -
Total current liabilities 2.08 1.32 - -
Financial liabilities (excluding trade payables and provisions) - - - -
Other liabilities - - - -
Total non current liabilities - - - -
Total liabilities 2.08 1.32 - -
Net assets 11.73 10.32 - -
Groups' share of net assets 2.35 2.06 - -
Carrying amount of interest in Associate / Joint Venture 3.38 3.03 - -
(Rupees in crore)
Future Factory LLP Godrej and Boyce Enterprises
LLP
31/03/2019 31/03/2018 31/03/2018 31/03/2017
Revenues 8.69 9.54 - -
Interest income 0.41 0.37 - -
Depreciation and amortisation 0.09 0.09 - -
Interest expense 0.02 0.02 - -
Income tax expense 0.90 1.03 - -
Profit from continuing operations 1.77 1.80 - -
Profit from discontinued opertaions - - - -
Profit for the year 1.77 1.80 - -
Other comprehensive income 0.04 0.02 - -
Total comprehensive income 1.81 1.82 - -
Group's share of profit 0.35 0.36 - -
Group's share of Other comprehensive income 0.01 0.00 - -
Group's share of Total comprehensive income 0.36 0.36 - -
160
43. BUSINESS COMBINATION

Amalgamation of wholly-owned subsidiary India Circus Retail Private Limited with the Company:
(a) A Scheme of Amalgamation ("the Scheme") of India Circus Retail Private Limited 'ICRPL' with the Company with effect from 1st April
2017, 'appointed date' was sanctioned by the National Company Law Tribunal (“NCLT”), Mumbai Bench, on 30th, August, 2018 and
certified copies of the Order of the NCLT sanctioning the scheme were received.
The entire undertaking of erstwhile ICRPL stands transferred to and vested in the Company as a going concern and ICRPL, without
any further act, stands dissolved without winding up. ICRPL was mainly engaged in e-commerce and offline retail business of home
décor and life style products . The amalgamation was accounted for as specified in the Scheme.
The asset, liabilities and reserves of ICRPL have been taken over at their carrying values and adjusted in the financial statements on
1st April, 2016, since the entities are under common control.
(b) The details of adjustments made in the accounts pursuant to the Scheme are set out below:
Value of Net Assets of India Circus Retail Private Ltd. taken over as at 1st April, 2017 (See Notes below):
Rupees in crore
Total Value of Net Assets taken over [(A) – (B)] (13.99)
Adjusted against: Retained Earnings 22.17
8.18
Less: Book Value of equity shares held by the Company in ICRPL written off (0.20)
Less: Book Value of preference shares held by the Company in ICRPL written off (23.00)
As reduced by the amount considered as long term borrowings above 15.21 (7.79)
Adjusted as Capital Reserve under Business Combination 0.19
(c) All assets and liabilities, have been recorded in the books of the Company at the values appearing in the books of ICRPL as at the
closing balance sheet as at 31st March, 2017.
(d) With effect from 1st April, 2017, all debts, liabilities, duties and obligations of ICRPL as at the close of business on the date preceding
the aforesaid date, whether or not provided in the books of ICRPL, and all liabilities which arise or accrue on or after 1st April, 2017
shall be deemed to be the debts, liabilities, duties and obligations of the Company.
(e) Pending completion of the relevant formalities for transfer of some of the assets and liabilities, acquired pursuant to the Scheme, in
the name of the Company, such asset and liabilities continue to be in the name of ICRPL.
(f) The amalgamation of the wholly-owned subsidiary does not entail issue of shares.
44. RELATED PARTY DISCLOSURES
(a) NAMES OF RELATED PARTIES AND NATURE OF RELATIONSHIPS:
(i) Subsidiaries (including step-down subsidiaries):

A. Subsidiaries (with the Company's direct equity holdings in excess of 50%):
1. Godrej Infotech Limited
2. Godrej (Singapore) Pte. Limited (a wholly-owned subsidiary incorporated in Singapore)
3. Veromatic International BV (a wholly-owned subsidiary incorporated in the Netherlands)
4. Godrej Americas Inc. (a wholly-owned subsidiary incorporated in the USA)
5. Sheetak Inc. (incorporated in USA)
The following companies are step-down subsidiaries (where the Company's subsidiaries listed above,
directly and/or indirectly through one or more subsidiaries, hold more than one-half of equity share capital):
B. Subsidiaries of Godrej Infotech Limited:
1. Godrej Infotech Americas Inc. (a wholly-owned subsidiary incorporated in North Carolina, USA)
2. Godrej Infotech (Singapore) Pte. Limited (a wholly-owned subsidiary incorporated in Singapore)
3. LVD Godrej Infotech NV (incorporated in Belgium)
C. Subsidiaries of Godrej (Singapore) Pte. Ltd.:
1. JT Dragon Pte. Ltd. (Incorporated in Singapore)
2. Godrej (Vietnam) Co. Ltd. (Incorporated in Vietnam) (a wholly owned subsidiary of JT Dragon Pte. Ltd.)
D. Joint Ventures:
1. Godrej Consoveyo Logistics Automation Ltd. (formerly Godrej Efacec Automation & Robotics Ltd.)
2. Godrej UEP (Singapore) Pte. Ltd. (Joint venture between Godrej (Singapore) Pte. Ltd. and Urban Electric Power Inc.)
3. Godrej UEP Pvt. Ltd. [a wholly-owned subsidiary of Godrej UEP (Singapore) Pte. Ltd.]
161
(ii) Other Associates and Limited Liability Partnerships:

A. ASSOCIATES AND LLP'S OF GODREJ AND BOYCE MFG. CO. LTD.:
1. Godrej & Boyce Enterprises LLP
2. Godrej Properties Developers LLP
3. Future Factory LLP
4. Urban Electric Power Inc.
5. Godrej & Khimji (Middle East) LLC (incorporated in Sultanate of Oman) [a Joint Venture of Godrej (Singapore) Pte. Ltd.]
(iii) Key Managerial Personnel:

(a) Whole-time Directors:
1. Mr. J. N. Godrej, Chairman & Managing Director
2. Mr. V. M. Crishna, Executive Director (Lawkim Motors Group)
3. Mr. A. G. Verma, Executive Director & President
4. Ms. N. Y. Holkar, Executive Director - Corporate Affairs
(b) Non-Executive Directors:
1. Mr. A. B. Godrej
2. Mr. N. B. Godrej
3. Mr. N. J. Godrej
4. Mr. K. N. Petigara
5. Mr. P. P. Shah
6. Ms. A. Ramchandran
7. Mr. K. M. Elavia
(c) Others:
1. Mr. P. K. Gandhi, Chief Financial Officer
2. Mr. P. E. Fouzdar, Executive Vice President and Company Secretary
3. Mr. A. R. Pimparkar, CEO, Godrej Infotech Ltd.
4. Ms. S. M. Mane, Company Secretary, Godrej Consoveyo Logistics Automation Ltd.
(d) Close members of the family of Key Management Personnel:

1. Mrs. P. J. Godrej (spouse of Mr. J. N. Godrej)
2. Mr. N. J. Godrej (son of Mr. J. N. Godrej)
3. Ms. R. J. Godrej (daughter of Mr. J. N. Godrej)
4. Mrs. S. G. Crishna (spouse of Mr. V. M. Crishna)
5. Mrs. F. C. Bieri (daughter of Mr. V. M. Crishna)
6. Mrs. N. Y. Holkar (daughter of Mr. V. M. Crishna)
(iv) Companies under common control:

1. Godrej Industries Limited
2. Godrej Agrovet Limited
3. Godrej Consumer Products Limited
4. Godrej Properties Limited
5. Godrej Seeds and Genetics Limited
(v) Key Managerial Personnel having significant influence over the group:
1. Mr. A. B. Godrej, Non-Executive Director for the parent company
2. Mr. N. B. Godrej, Non-Executive Director for the parent company
3. Ms. Nisaba Godrej (daughter of Mr. A. B. Godrej)
4. Ms. Tanya Dubash (daughter of Mr. A. B. Godrej)
5. Mr. P. A. Godrej (son of Mr. A. B. Godrej)
(vi) Post Employment Benefit Trust with whom the Company has transactions:
1. Godrej and Boyce Manufacturing Co. Ltd. Employees' Provident Fund
2. Godrej and Boyce Manufacturing Co. Ltd. Employees' Gratuity Fund
3. Godrej and Boyce Manufacturing Co. Ltd. Managerial Superannuation Fund
162
(b) PARTICULARS OF TRANSACTIONS WITH RELATED PARTIES DURING THE YEAR: (Rupees in crore)
Current Year
Associate Previous Year
Associate
Companies Companies
[Items (a)(i),
[Items (a)(i), (iii), (iii), (iv) and (v)]
(iv) and (vi)]
(i) Transactions carried out with the related parties,
(a) Purchase of Materials/Finished Goods/Services 31.13 15.27
(b) Sales, Services Rendered and Other Income 36.96 40.80
(c) Trade and other Receivables 15.86 13.20
(d) Trade and other Payables 2.57 4.50
(e) Guarantees given, outstanding at year end 80.01 148.31
(f) Rent, Establishment & other expenses paid - -
(g) Dividend Received 90.01 45.01
(h) Interest paid on Deposits taken - 0.01
(i) Unsecured Deposits placed 5.77 5.37
(j) Deposits received - 0.05
(k) Investments Purchased - 3.25
(l) Loans to Associate Company 13.21 -
(ii) Transactions carried out with Mr. J. N. Godrej, Chairman & Managing Director
(a) Dividends paid
As a Trustee of The Raika Godrej Family Trust 2.08 8.04
As a Trustee of JNG Family Trust 6.54 -
As a Trustee of Raika Lineage Trust 5.07 -
As a Trustee of Navroze Lineage Trust 5.07 -
(b) Unsecured Deposits outstanding 30.00 17.00
(iii) Transactions carried out with Mr. V. M. Crishna, Executive Director:
(a) Dividends paid * 0.00 0.00
(iv) Transactions carried out with Ms. N. Y. Holkar, Executive Director:
(a) Dividends paid 2.08 7.74
(v) (a) Remuneration paid/payable to Key Management Personnel (Whole-time Directors)
(b) Retiral benefits paid/payable to Key Managerial Personnel:
(vi) Transactions with Relatives of Whole-time Directors
(a) Mrs. P. J. Godrej
Dividend Paid 0.01 -
Interest paid on deposits taken 0.19 0.14
(b) Ms. R. J. Godrej:
Dividend Paid 0.00 0.00
Interest paid on deposits taken 2.61 1.63
163
(Rupees in crore)
(c) Mrs. S. G. Crishna

Dividend Paid
As a Trustee of SGC Family Trust 7.06 -
As a Trustee of FVC Family Trust 4.81 -
As a Trustee of NVC Family Trust 4.81 -
(d) Mrs. F. C. Bieri
(e) Mr. N. J. Godrej
(vii) Transactions with Non-Executive Directors

Commission 0.53 0.53
Sitting Fees 0.53 0.50
Others - -
*(Amount less than Rs.0.01 crore)
(viii) Contribution to post-employment benefit plans:

(a) Advance received and repaid to the Company by:
2. Godrej and Boyce Manufacturing Co. Ltd. Employees' Gratuity Fund - -
3. Godrej and Boyce Manufacturing Co. Ltd. Managerial Superannuation Fund - 0.71
(b) Towards Employer's contribution:

(c) Balance payable by the Company to:

45. DISCLOSURE IN RESPECT OF LEASES

(a) The Company’s significant leasing arrangements are in respect of operating leases for motor cars, laptop computers, machinery,
storage tanks and premises (office, godown, show-room, retail store, residential, etc.), occupied by the Company. The aggregate
lease rentals payable by the Company are charged to the Statement of Profit and Loss as Rent [Note 34(j)], Establishment and Other
Expenses [Note 34(k)] and Motor Car and Lorry Expenses [Note 34(m)].
The total charge to the Statement of Profit and Loss is Rs. 30.88 crore (Previous Year: Rs. 32.26 crore)
The future minimum lease payments under non-cancellable operating leases in respect of premises, motor cars and laptop
computers, are estimated at:
(Rupees in crore)
As at As at
31/03/2019 31/03/2018
Within one year 17.34 21.90
Later than one year not later than 5 years 19.67 19.92
Later than 5 years 12.69 13.44
Total 49.70 55.26
164
(b) Lease income from operating leases is recognised in the Statement of Profit and Loss. Initial direct costs incurred specifically to earn
revenues from operating leases of fixed assets are charged to the Statement of Profit and Loss as incurred. These assets pertain to
land, commercial/residential premises, forklifts and vending machines given on lease on varying tenure and other terms.
The future minimum lease rentals receivable under non-cancellable operating leases are estimated at:
(Rupees in crore)
As at As at
31/03/2019 31/03/2018
Within one year 93.68 79.50
Later than one year not later than 5 years 150.01 73.70
Later than 5 years - -
Total 243.69 153.20
46. Figures for the previous year have been regrouped / restated wherever necessary to conform to current year's presentation.
47. INFORMATION ON SUBSIDIARIES, JOINT VENTURE AND ASSOCIATES

(a) The investments in subsidiary Companies are:
Sr. Name of the Company Country of Proportion of Proportion of Reporting date
No. Incorporation ownership voting power
interest held
1 Godrej Infotech Limited India 52.06% 52.06% 31-03-2019
2 Godrej (Singapore) Pte Ltd Singapore 100.00% 100.00% 31-12-2018
3 Veromatic International B.V. Netherlands 99.95% 99.95% 31-12-2018
4 Godrej Americas Inc. USA 100.00% 100.00% 31-03-2019
5 Sheetak Inc. USA 56.51% 56.51% 31-12-2018
6 Godrej Property Developers LLP India 68.00% 68.00% 31-03-2019
(b) Interests in Joint Ventures :

1 Godrej Consoveyo Logistics Automation Ltd. (formerly
Godrej Efacec Automation & Robotics Limited) India 49.00% 49.00% 31-03-2019
(c) Investment in Associates:

1 Future Factory LLP India 20.00% 20.00% 31-03-2019
2 Godrej & Boyce Enterprises LLP India 50.00% 50.00% 31-03-2019
3 Urban Electric, LLC. USA 23.76% 23.76% 31-12-2018
Sub-Subsidiaries of Godrej Infotech Ltd.

1 LVD Godrej Infotech NV, Belgium Belgium 46.85% 46.85% 31-12-2018
2 Godrej Infotech (Singapore) Pte. Ltd. Singapore 52.06% 52.06% 31-03-2019
3 Godrej Infotech Americas Inc. USA 52.06% 52.06% 31-03-2019
Subsidiaries, Associates and Joint Venture of Godrej Singapore Pte Ltd

1 JT Dragon Pte. Ltd. Singapore 100.00% 100.00% 31-12-2018
2 Godrej Vietnam Co. Ltd. Vietnam 100.00% 100.00% 31-12-2018
3 Godrej Khimji (ME) LLC Sultanate of 49.00% 49.00% 31-12-2018
Oman
4 Godrej UEP Singapore Pte Ltd Singapore 50.00% 50.00% 31-12-2018
5 Parazelsus Orient Ltd. British Virgin 30.00% 30.00% 31-12-2018
Islands
165
48. ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF ENTERPRISES
CONSOLIDATED AS SUBSIDIARY / ASSOCIATES
Name of the Enterprise Net Assets (i.e. total Share in Profit / Loss Share in Other Share in Total
assets minus total account Comprehensive Income Comprehensive Income
liabilities)
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in consolidated (Rs. in
net assets crore) profits crore) profits crore) profits crore)
Parent
Godrej and Boyce Manufacturing Company Limited 100.06% 9,206.47 112.74% 229.26 100.04% (248.01) 42.09% (18.75)
Subsidiaries
Indian
1 Godrej Infotech Ltd. 0.46% 42.09 7.71% 15.67 0.39% (0.97) -32.97% 14.69
2 Godrej Property Developers LLP 0.00% (0.06) 0.00% - - - 0.00% -
Foreign
1 Godrej (Singapore) Pte. Ltd., Singapore 0.95% 87.64 -1.07% (2.18) -2.10% 5.21 -6.80% 3.03
2 Veromatic International BV, the Netherlands 0.02% 2.13 -0.91% (1.85) 0.08% (0.20) 4.60% (2.05)
3 Godrej Americas Inc. , USA. -0.01% (0.62) -0.86% (1.75) -0.03% 0.07 3.77% (1.68)
4 Sheetak Inc., USA. -0.64% (59.14) -11.27% (22.91) 1.61% (4.00) 60.40% (26.91)
Eliminations -0.68% (62.12) -6.34% (12.89) 0.93% (0.41)

Minority Interest in all subsidiaries -0.17% (15.37) 0.00% - -
Joint Venture and Associates (Investment accounted as per the equity method)
Indian :
1 Godrej Consoveyo Logistics Automation Ltd. 0.00% - -2.07% (4.20) 9.43% (4.20)
2 Future Factory LLP 0.00% - 0.00% - 0.00% -
Foreign:
1 Urban Electric Power LLC, USA 0.00% - -4.07% (8.27) 18.56% (8.27)
Grand Total 100.00% 9,201.02 100.00% 203.35 100.00% (247.90) 100.00% (44.55)
49. CONTRACT COSTS Current Year

(a) Change in Contract Assets
Opening Balance of Contract Assets (net of expected credit loss) 348.36
Less: Adjustment on account of Ind AS 115 transition 35.71
Revenues recognised during the year 1,280.78
Less: Progress Billing during the year 1,133.22
Closing Balance of Contract Assets 460.21
(b) The aggregate value of unexecuted Order Book. (Out of this the Company expects to recognise
revenue of around 51% within next one year and the remaining thereafter). 2,982.74
(c) Cost to Obtain the Contract:
I. Amount of amortisation recognised in the Statement of Profit and Loss during the year 2.95
II. Amount recognised as an asset 4.20
The Company has not adjusted the promised amount of consideration for the efforts of a significant
financing component if the Company expects, at contract inception, that the period between when
the Company transfers a promised good or service to a customer and when the customer pays for
that good or service will be less than one year.
The Company has recognised the incremental costs of obtaining a contract as an expense in the
Statement of Profit and Loss when incurred, if the amortisation period of the asset that the
Company otherwise would have recognised is one year or less.
(d) Reconciliation of revenue recognised in the Statement of Profit and Loss with contracted price
Revenue from contracts with customers (as per Statement of Profit and Loss) 1,146.25
Add: Discounts, Rebates, Refunds, Credits, Price Concessions -
Less: Incentives, performance bonuses -
Contracted price with customers 1,146.25
(e) Applying the practical expedient given in Ind AS 115, the Company has not disclosed the
remaining performance obligation related disclosures as the revenue recognised corresponds
directly with the value to the customer of the Company’s performance obligation till date.
166
Form AOC - 1
[ 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/ LIMITED LIABILITY PARTNERSHIPS
Part "A": Subsidiaries
Rupees in Crore
Sr. Name of Subsidiary Reporting Period for the subsidiary Reporting currency and Share Reserves & Total Assets Total Investments Turnover Profit Provision for Profit after Proposed % of
No. concerned, if different from the exchange rate as on the last capital surplus Liabilities before taxation taxation Dividend share-
holding company's reporting period date of the relevant financial taxation holding
year in case of foreign
subsidiaries
Reporting
currency Exchange rate
1 Godrej Infotech Ltd. 01-Apr-2018 To 31-Mar-2019 INR 1.00 0.10 36.45 67.33 30.78 14.93 122.05 18.63 5.75 12.88 - 52.06%
2 Godrej (Singapore)Pte. Ltd., Singapore 01-Jan-2018 to 31-Dec-2018 SGD 50.9217 9.10 55.21 72.32 8.01 26.77 20.74 (3.08) 0.05 (3.12) - 100%
3 Veromatic International BV, the Netherlands 01-Jan-2018 to 31-Dec-2018 EURO 79.4654 35.90 (33.77) 26.10 23.96 - 52.08 (2.54) (0.68) (1.85) - 99.95%
4 Godrej Americas Inc. USA. 01-Apr-2018 To 31-Mar-2019 USD 69.322 2.08 (2.70) 41.24 41.86 - 12.26 (2.27) (0.56) (1.71) - 100%
5 Sheetak Inc., USA 01-Jan-2018 to 31-Dec-2018 USD 69.4804 37.09 (102.49) 4.95 70.35 - 0.39 (22.91) - (22.91) - 56.51%
6 Godrej Property Developers LLP 01-Apr-2018 To 31-Mar-2019 INR 1.00 - (0.07) 0.06 0.13 - - (0.01) - (0.01) - 68.00%
SUBSIDIARY AND SUB-SUBSIDIARY OF GODREJ SINGAPORE PTE LTD

7 JT Dragon Pte. Ltd., Singapore 01-Jan-2018 to 31-Dec-2018 SGD 50.9217 26.51 2.83 29.38 0.04 26.36 - 0.77 - 0.77 - 100%
8 Godrej (Vietnam) Co. Ltd., Vietnam 01-Jan-2018 to 31-Dec-2018 VND 0.00298 12.30 23.17 38.50 3.03 - 38.66 1.41 0.18 1.23 - 100%
SUBSIDIARY AND SUB-SUBSIDIARY OF GODREJ INFOTECH LTD

9 LVD Godrej Infotech NV, Belgium 01-Jan-2018 to 31-Dec-2018 EURO 79.4654 0.49 1.64 5.90 3.78 1.87 16.46 1.61 0.37 1.23 - 46.85%
10 Godrej Infotech (Singapore) Pte Ltd., Singapore 01-Apr-2018 To 31-Mar-2019 SGD 51.1286 0.51 4.30 8.11 3.30 - 10.23 1.62 0.17 1.44 - 52.06%
11 Godrej Infotech Americas Inc., USA. 01-Apr-2018 To 31-Mar-2019 USD 69.322 0.07 (0.06) 1.70 1.69 - 0.12 0.09 0.02 0.07 - 52.06%
*Amount less than Rs. 50,000
167
Part "B": Associates and Joint Ventures

Rupees in Crore
Sr. Name of Associate / Joint Venture Latest audited Balance Sheet Shares of Associate/ Joint Venture held Description of how there is significant Reason why the Associate / Joint Networth attributable to Profit/ Loss for the year
No. Date by the Company on the year end influence Venture is not consolidated Shareholding as per
latest audited Balance
Sheet
Number Amount of Extent of Considered in Not Considered
Investment in Holding Consolidation in Consolidation
Associate %
/Joint Venture
A Joint Ventures:
1 Godrej Consoveyo Logistics Automation Ltd. (formerly 01-Apr-2018 to 31-Mar-2019 7,50,000 0.75 49% There is significant influence by virtue of Godrej and Boyce Mfg. Co. Ltd stake is 3.98 (4.18) (4.39)
Godrej Efacec Automation and Robotics Ltd.) (Joint joint control. less than 51%
Venture)
2 Godrej UEP Singapore Pte Ltd. 01-Jan-2018 to 31-Dec-2018 1,00,000 0.48 50% There is significant influence by virtue of Godrej and Boyce Mfg. Co. Ltd stake is 0.47 (0.04) (0.04)
joint control. less than 51%
B Associates:
3 Godrej and Khimji (Middle East) L.L.C. -Oman [Joint 01-Jan-2018 to 31-Dec-2018 5,78,200 14.05 49% Godrej Singapore Pte.Ltd. is holding Godrej and Boyce Mfg. Co. Ltd stake is 11.22 (3.89) (4.05)
Venture of Godrej (Singapore) Pte. Ltd.] more than 20% of share capital less than 51%
4 Parazelsus Orient Ltd. 01-Jan-2018 to 31-Dec-2018 38 - 30% Godrej Singapore Pte.Ltd. is holding Godrej and Boyce Mfg. Co. Ltd stake is (4.96) (1.91) (4.45)
more than 20% of share capital less than 51%
5 Godrej and Boyce Enterprises LLP * 01-Apr-2018 to 31-Mar-2019 NA 0.00 50% Godrej and Boyce Mfg. Co. Ltd is Godrej and Boyce Mfg. Co. Ltd stake is 0.00 0.00 0.00
holding more than 20% of share capital less than 51%
6 Future Factory LLP 01-Apr-2018 to 31-Mar-2019 NA 3.03 20% Godrej and Boyce Mfg. Co. Ltd is Godrej and Boyce Mfg. Co. Ltd stake is 2.35 0.35 1.42
holding 20% of share capital less than 51%
7 Urban Electric Power Inc., USA 01-Jan-2018 to 31-Dec-2018 17,75,385 11.73 23.76% There is significant influence by virtue of Godrej and Boyce Mfg. Co. Ltd stake is (11.43) (8.27) (26.53)
almost 20% of share capital held. less than 51%
*(Amount less than Rs. 50,000)
For and on behalf of the Board of Directors
J. N. GODREJ A. G. VERMA P. K. GANDHI P. E. FOUZDAR

Chairman & Executive Director Chief Financial Executive Vice President
Managing Director & President Officer (Corporate Affairs) & Company Secretary
Mumbai, 20th August, 2019 DIN: 00076250 DIN: 02366334
168

ENCLOSURE 5
Form No. MGT - 11 (PROXY FORM)

Referred to in Note ( b) of the Notice of Annual General Meeting
169
ENCLOSURE 5
Form No. MGT-11

PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and
Administration) Rules, 2014]
CIN: U28993MH1932PLC001828
Name of the Company: GODREJ & BOYCE MANUFACTURING COMPANY LIMITED
Registered Office: PIROJSHANAGAR, VIKHROLI, MUMBAI- 400 079
Name of the Member (s):
Registered address:
E-mail ID:
Folio No / Client ID:
DP ID:
Number of Share(s) held:
I /We, being the Member(s) of [_______] Equity Shares of the abovenamed Company, hereby appoint
1. Name:
Address:
Email Id:
Signature:
Or failing him/her
2. Name:
Address:
Email Id:
Signature:
Or failing him/her
3. Name:
Address:
Email Id:
Signature:
as my/our proxy to attend and vote for me/us on my/our behalf at the Annual General Meeting of the
Company to be held on Friday, 20th September, 2019 at 10:00 a.m. at Pirojshanagar, Vikhroli, Mumbai
400079, and at any adjournment thereof in respect of such Resolution as indicated below:
ORDINARY BUSINESS
1. Adoption of the Financial Statements for the financial year ended 31st March, 2019.
2. Appointment of Mr. N.J. Godrej as Director liable to retire by rotation.
3. Appointment of Mr. A.B. Godrej as Director liable to retire by rotation.
SPECIAL BUSINESS
4. Approving payment of commission to the Non-Executive Directors of the Company.
5. Ratification of remuneration payable to M/s. P.D. Dani & Associates, Cost Accountants and Mr. A. N.
Raman, Cost Accountant, for the financial year 2019-20.
Signed this ….......…… day of ………………. 2019 Affix Re. 1

Revenue
(Signature of Shareholder(s) Stamp
Signature of Proxy………………......
NOTES:
1. This form in order to be effective should be duly completed and deposited at the Registered Office of
G&B at Pirojshanagar, Vikhroli, Mumbai - 400079, Maharashtra, not less than 48 hours before the
commencement of the Meeting.
2. Please affix revenue stamp before putting signature.
3. Alterations, if any, made in the Form of Proxy should be initialled.
4. In case of multiple proxies, the proxy later in time shall be accepted.
5. The Proxy is required to carry an identity proof at the time of attending the Meeting.
6. The Proxy need not be the Shareholder of the Company.
ATTENDANCE SLIP
Registered Office: Pirojshanagar, Vikhroli, Mumbai, 400 079.
CIN: U28993MH1932PLC001828
88th Annual General Meeting – Friday, 20thSeptember, 2019
Name of the Member(s):

Name of the Proxy:
No. of shares:
Folio No. / *DP id and
Client id:
*Applicable for investors holding shares in electronic form
I/We hereby record my/our presence at the 88TH ANNUAL GENERAL MEETING of
the Company on Friday, 20th September, 2019at 10:00 a.m. at Pirojshanagar, Vikhroli,
Mumbai- 400 079.
______________________________________
Member’s / Proxy’s Signature
(To be signed at the time of handing over this slip)
Notes. 1. Please complete this attendance slip and hand it over at the entrance of the
meeting hall.
2. Joint shareholders may obtain additional attendance slip at the venue of the meeting.
MAP OF THE VENUE OF THE ANNUAL GENERAL MEETING OF
GODREJ & BOYCE MFG. CO. LTD.

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Godrej & Boyce Manufacturing Company Limited

ANNUAL REPORT AND ACCOUNTS

Company Secretary Chief Financial Officer

Registered Office and Head Office

Corporate Identity Number (CIN)

NOTICE OF ANNUAL GENERAL MEETING

For and on behalf of the Board

ANNEXURE TO NOTICE OF ANNUAL GENERAL MEETING

For and on behalf of the Board

Brief Resume of the Directors

Terms & Conditions of re- Appointment as an Non-Executive Appointment as an Non-Executive

Remuneration last drawn Nil Nil

Chairman/Membership in other Nil Godrej Consumer Products Limited:

Godrej Industries Limited:

1. FINANCIAL RESULTS (STANDALONE)

Revenue from Operations 11,051.55 9,796.76

3. STATE OF THE COMPANY'S AFFAIRS

5. EXTRACT OF ANNUAL RETURN

6. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

7. NUMBER OF MEETINGS OF THE BOARD

8. DIRECTORS' RESPONSIBILITY STATEMENT

9. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE AND POLICY

10. AUDIT COMMITTEE

The Company Secretary acts as the Secretary of the Audit Committee.

11. VIGIL MECHANISM/ WHISTLE-BLOWER POLICY

12. NOMINATION AND REMUNERATION COMMITTEE

13. STAKEHOLDERS RELATIONSHIP COMMITTEE

14. FIXED DEPOSITS FROM MEMBERS AND FROM PUBLIC

Sr. Particulars Amount in Crore (Rs.)

(i) At the beginning of the year -

16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

20. INTERNAL FINANCIAL CONTROLS

21. RISK MANAGEMENT

25. COST AUDITORS

26. SECRETARIAL AUDITORS

27. SECRETARIAL STANDARDS

28. FRAUD REPORTING

29. PARTICULARS OF EMPLOYEES

30. POLICY TO PREVENT SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

For and on behalf of the Board

ANNEXURE I TO THE BOARD'S REPORT

(i) The steps taken or impact on conservation of energy

(iii) The capital investment on energy conservation equipment

(ii) The details of technology imports and absorption

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

ANNEXURE II TO THE BOARD'S REPORT

1. CSR Reporting Framework

2. Outline of CSR Policy

2.2 CSR Committee

2.4 Task Forces

2.5 CSR Budget & Expenditures (Table 1 and 2)

B. Support Uplifting education, Promoting Shirwal Schools, 90 83 83 83 83 Lakh direct Invoices

J. N. Godrej V.M. Crishna

ANNEXURE II TO THE BOARD'S REPORT

Sr. No. State No of training centres Cities/town/district

13 Kerala 3 kannur, Cochin, Kalamsury,

16 Odisha 5 Bhubaneshwar (Jatani), Cuttack, Paralakhemundi,

ANNEXURE II TO THE BOARD'S REPORT

Sr. Name of the Partner Address Head Office Trades No of