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Godrej Agrovet 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 Financial Results which are published in accordance with Regulation 33 of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements), Regulations, 2015 have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on February 4,2019, The Financial Results are in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act 2013 (“Act”), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (including any amendments) / modification(s) / re-enactment(s) thereto). The Financial Results have been subjected to a limited review by the Statutory Auditors of the Company.

2. During the previous year, the Company has completed Initial Public Offer (IPO) of 25,158,964 Equity Shares of Rs.10/- each at an issue price of Rs,460/- per Equity Share, consisting of fresh issue of 6337,225 Equity Shares and offer for sale of 18,821,739 Equity Shares by Selling Shareholders. The Equity Shares of the Company were listed on October 16, 2017 on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).

3. Sales for the Quarter ended September 30, 2018, Quarter and Nine months period ended December 31,2018. Quarter and Nine months period ended December31,2017 and Financial Year ended March 31,2018 are net of Goods & Service Tax (GST). However, sales for the Quarter ended June 30* 2017 included in the amounts for the Nine months period ended December 31, 2017 and Financial Year ended March 31. 2018 are inclusive of Excise Duty. Accordingly* the amounts are not comparable.

4. To give effect to the Scheme of Amalgamation ("the Scheme") of Godrej Gokama Oil Palm Ltd (GGOPL), Godrej Oil Palm Ltd (GOPL) and Cauvery Palm Oil Ltd (CPOL) ("the Transferor Companies") with Godrej Agrovet Limited (“the Transferee Company"), effective April 1, 2011, ("the Appointed date") as sanctioned by the Hon'ble High Court of Judicature at Bombay ('’the Court"), vide its Order dated March 16, 2012, the following entries have been recorded:

i. Amortisation of Intangible Assets of the Transferor Companies amounting to Rs.1.06 Crore each for the Quarters ended December 31, 2018, September 30, 2018 and December 31, 2017, Rs.3.18 Crore for the Nine months period ended December 31,2018 and December 31, 2017, Rs.4.25 Crore for the Financial Year ended March 31,2018 recorded in the hooks of the Transferee Company are charged against the balance in the General Reserve Account of the Transferee Company. The Gross Book value of these Assets now held by the Transferee Company is Rs.42.51 Crore.

Had the Scheme not prescribed the above treatment, profit for each of the Quarters ended December 31,2018, September 30,2018, and December 31, 2017 would have been lower by Rs.0.69 Crore, for the Nine months period ended December 31,2018 and December 31, 2017 would have been lower by Rs,2,07 Crore and for the Financial Year ended March 31,2018 would have been lower by Rs.2.77 Crore.

5. Exceptional Items of the Financial Year ended March 31, 2018, Quarter and Nine months ended December 31, 2017 comprises gain recognised by a subsidiary company on cancellation of an agreement for supply of product with one of its customer of Rs. 19.33 Crore and loss due to inventory written off by the subsidiary company aggregating Rs. 7.28 Crore.

6. The Company has initiated the process of merger of its subsidiary Astec Lifesciences Limited and is in the process of completing the necessary formalities as stipulated.

7. The Company had paid remuneration to its Managing Director during the Financial Yea ended March 31, 2017 which was in excess of the limits given under Section 197 of the Companies Act, 2013 read with Schedule V to the Act by Rs.86.61 Crore. The Company has obtained necessary approvals for the same, in accordance with the Companies (Amendment) Act, 2017.

8. Other income for the Quarter ended September 30, 2018 and Nine months period ended December 31, 2018 includes non-recurring income of Rs.30.49 Crore being profit on sale of Land.

9. Notes to Consolidated Segmental Information

a Unallocable expenditure includes general administrative expenses and other expenses incurred on common services at the corporate level and relate to the Group as a whole.

b Others includes Seeds, Windmill and Real estate.

10. The figures of corresponding previous period have been regrouped/ reclassified wherever necessary, to conform to this period's classification/ disclosure.

B. S. Yadav
Managing Director