Godrej Consumer Products Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above results which are published in accordance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 29 January 2019. The financial results are in accordance with the Indian Accounting Standards (Ind- AS) as prescribed under Section 133 of the Companies Act, 2013, read with the relevant Rules thereunder. These results have been subjected to a limited review by the Statutory Auditors of the Company.

2. During the year to date, the Company completed divestment of its UK business, consequently gain of Rs.75.36 crore has been reported under exceptional items. Also, an amount of Rs.192.37 crore being gain on account of change in the earnout liability of a subsidiary has been reported under exceptional items for the nine months ended 31 December 2018. For the year ended 31 March 2018, exceptional items included an amount of Rs. 194.99 crore being gain on account of change in earnout liability of a subsidiary.

3. During the year to date, the Company has issued and allotted bonus shares in the ratio of 1:2 i.e. 1 (one) bonus equity share of face value Rs. 1 each for every 2 (two) fully paid-up equity share held. Total number of bonus shares so issued is 340,722,032 equity shares of face value R1 each. As a result the calculation of basic and diluted earnings per share for all relevant periods presented has been adjusted.

4. During the year to date, the Company has granted 98,343 new stock grants to eligible employees under the Employee Stock Grant Scheme (ESGS) and the Company has allotted 1,14,546 equity shares upon exercise of stock grants under the ESGS.

5. The Board has declared interim dividend for the year 2018-19 at the rate of Rs. 2 per share (200% on the face value of Rs. 1 each). The record date for the same has been fixed as 6 February 2019 and the dividend shall be paid on 20 February 2019.

6. Segment information as per Ind-AS 108, 'Operating Segments' is disclosed in Annexure-I

7. Sales for the nine months ended 31 December 2018 is net of Goods and Service Tax (GST). However, sales for the quarter ended 30 June 2017 which are also included in the amounts for the nine months ended 31 December 2017 and year ended 31 March 2018 is gross of Excise Duty. Accordingly, the amounts are not comparable.

8. Ind AS 29 "Financial Reporting in Hyperinflationary Economies" has been applied to the Group's entities with a functional currency of Argentina Peso for the nine months ending 31 December 2018. Ind AS 21 'The Effects of Changes in Foreign Exchange Rates" has been applied to translate the financial statements of such entities for consolidation. Ind AS 21 does not require prior year comparatives to be restated due to hyperinflation, consequently, the comparative numbers for such entities are the same as reported in the consolidated financial results of previous periods. Application of these standards resulted into reduction in revenue from operations by Rs. 13.63 crore and increase in loss by Rs. 7.65 crore for the nine months ended 31 December 2018 and increase in net non-monetary assets by Rs.34.07 crore with corresponding increase in Total Equity as of 31 December 2018.

9. During the year to date. Cost of materials consumed includes Rs. 50.60 crore towards write down of inventory based on an assessment of future saleability / usability of certain products / raw materials in the Africa region.

10. During the year to date, there has been sale of certain brands within the Group's entities that shall derive benefits of future tax deductions for the Group. Consequently, a deferred tax asset amounting to Rs. 96.81 crores has been recognised in the Consolidated Financial Results.

11. Previous period figures have been regrouped and reclassified wherever necessary.

Nisaba Godrej
Executive Chairperson