Godrej Sustainability Report

35 DEFINED BENEFIT PLAN OBLIGATIONS AND OTHER RETIREMENT PLANS As a policy, the Company maintains wages of its permanent employees as per wage settlements and industry benchmarks and for contractual employees as per statutory requirements of minimum wages fixed by the state government. The company does not differentiate in the employee remuneration based on gender The Company has the following benefit plans for its employees: The Company has a trust for Employee Provident Fund. The Company also offers its employees a voluntary provident fund and fixed deposit scheme. Group Mediclaim Policy Employee’s gratuity fund Leave encashment Superannuation Fund Contributory Death Relief Scheme ECONOMIC PERFORMANCE G&B believes that a profitable business can consistently provide the necessary means to drive positive sustainable change, not only for the shareholders and employees, but also for the external stakeholders like ancillary businesses, local communities and the nation at large. The Company is committed to generating economic value in the most environmentally responsive and socially inclusive manner. The Company measures its economic performance on the parameters of revenue, profitability and cash flows. In addition, it recognizes the need to create economic value for its various stakeholders by focusing on delivering adequate returns on capital employed. It measures these parameters for each of its business units spread across consumer durables and industrial product segments, internally reporting operational results at the levels of individual lines of business. The Company delivered resilient economic performance in the face of significant headwinds from a sluggish economic environment; a complex regulatory environment, global competitive forces, domestic and international macroeconomic uncertainty and volatility, and a general lack of optimism for the future, leading to pressure on sales, profitability and return on assets employed. Despite these challenges, revenue in the last 3 years grew by 8.8% YOY. The consumer durables segment registered a steady CAGR of 6.6% while the industrial products segment showed an impressive growth of 16.1% for the period of FY 16 -19 Return on capital employed was 11% for FY 18 -19 as compared to 6% for FY 15 -16. The Company has continued to make significant investments for the future, across its business domains. Snapshot of G&B ’ s financial performance (INR) Economic Value Generated & Distributed Economic Value Generated & Distributed (Rupees in crore) FY 2018-19 FY 2017-18 FY 2016-17 Economic Value Generated Revenues Economic Value Distributed Operating Costs Employee Benefits and Wages Payment to Providers of Capital Payments to Government Community Investments Economic Value Retained 9,898.32 9,898.32 9677.4 7,496.85 1116.04 299.87 759.57 5.07 220.92 9,904.16 9,904.16 9,636.27 7,888.11 1,097.17 360.17 286.2 4.62 267.89 11,167.19 11,167.19 10,937.93 9,254.64 1,170.71 380.37 126.62 5.59 229.26