CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED

ANNUAL REPORT 2020-21

PEOPLE
POWERING
PROGRESS
Contents
02
05
Letter from the Chairman
Our 5-Dimensional Growth Strategy
Corporate
06 Brand Excellence Overview
08 Portfolio Excellence
10 Go-to-Market Excellence 01-18
11 Operational Excellence
12 Organisational Excellence
14 Standalone Financial Highlights
15 Giving Back to Society
17 Awards & Accolades
18 Corporate Information

19 Management Discussion & Analysis

32 Board Report & Annexures Statutory
81
107
Corporate Governance Report & Annexure
Corporate Governance Certificate
Reports
108
109
CEO & CFO Certificate
Business Responsibility Report
19-122

Standalone Financial Statements Financial

123 Independent Auditors’ Report
132 Balance Sheet Statements
133 Statement of Profit and Loss
134 Statement of Changes in Equity 123-253
135 Statement of Cash Flows
137 Notes to Financial Statements
Consolidated Financial Statements
189 Independent Auditors’ Report
196 Balance Sheet
197 Statement of Profit and Loss
198 Statement of Changes in Equity
199 Statement of Cash Flows
201 Notes to Financial Statements

To read this report online or to download

please visit us at www.crompton.co.in/investors/annual-report/
2020-21 was a landmark year, in which every
member of Crompton and our extended family
went the extra mile to enable the organisation to
forge ahead, while also fully responding to the call
to protect human health.
In unprecedented times such as the nationwide lockdown due to the novel
coronavirus pandemic, our workforce’s resilience enabled business continuity
and earned greater trust from our community of customers, suppliers, traders,
and vendors. The year proved, yet again, that our people form the cornerstone
of our success.

The normal rhythm of the economy that drives our business was undoubtedly
disrupted, as many of the sectors vital for Crompton were heavily impacted
by the lockdown and the reverse migration, putting several challenges in our
way. Nonetheless, we focussed on identifying fresh opportunities, capturing
new territories, and highlighting the stories of our market-leading product
innovation through focussed communication at every level, from field sales to
online campaigns.
We are proud of our team, our extended family of stakeholders, and the effectiveness with which they traversed the transformed
business landscape. Our people have shown commendable commitment, and we are confident that having withstood the
toughest test for any business in a lifetime, we can continue creating sustained value in the years ahead.

This year, let us celebrate People Powering Progress.

Letter from the Chairman
Dear Shareholders, intensified our focus on leveraging
It is my pleasure to present, on behalf technology, a crucial enabler of our
of our Board of Directors, the Annual business efficiency. Fiscal prudence
Report of your Company for the remained the order of the day in these
financial year ended 31st March, 2021. uncertain times, amply reflected in
cost optimisation measures, efficient
During the year under review, the management of working capital and a
COVID-19 outbreak triggered an strong balance sheet.
unprecedented health crisis, causing
huge economic disruption and Looking back, Crompton and its
lockdown across the country. Against people can be proud of the way with
this extraordinary backdrop, we which they navigated the challenging
delivered a creditable performance landscape, and we would like to
underpinned by our investments commend the commitment that our
in long-term strategic choices and people have shown in supporting
decisive action in response to our channel partners, customers,
the pandemic. This includes our communities as well as each other
investment in customer-centric product throughout this difficult period.
innovation, enabling us to bring
meaningful offerings to the market. Macro-Economic Overview
Our aggressive go-to-market strategy The Indian economy was severely
focussed on empowering our channel impacted on account of the COVID-19
partners, supporting them through pandemic and contraction of economic
this period of uncertainty, and growing activity following the nationwide
our distribution footprint. We also lockdown. As per the advance
stepped up our investments in people, estimates released by the National
e-commerce and rural channels and Statistics Organisation (NSO), the
economy is estimated to contract by
7.7% in FY21, as compared to 4.2%
economic growth recorded in the
previous fiscal.

Recent economic indications and data

suggest that the economy is headed
for a gradual revival; however, the
intensity and depth of the second
wave of COVID-19 may derail this
rebound. Notwithstanding the short-
term challenges due to the pandemic,
the medium and long-term growth
drivers are in place. The Government’s
fiscal support package to support
demand and economic recovery,
significantly higher allocation for
infrastructural development, and
policy reforms implemented under
the vision of ‘Atmanirbhar Bharat’ or

02 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

“
self-reliant India will be fundamental in
shaping the growth story of the Indian
economy. Resumption in economic
activity will also be contingent on
the fast and successful roll-out of the
Our sustained results were driven by a strong
vaccination drive. performance from our Electrical Consumer
Industry Growth Drivers
Durables segment which includes our fans,
Rapidly growing urbanisation and appliances and pumps businesses. In the fans
rising disposable income are driving the business, we introduced superior new additions,
adoption of consumer electrical goods
among Indian households. Moreover, especially in the premium category, and enhanced
with increased consumer awareness our reach, which enabled us to increase our
of energy-efficient and better products,
the demand for offerings that embed
market share.
newer technologies is witnessing a
strong acceptance. The Government’s
continued strong focus on rural ` 4,825.58 crore while Profit After Our lean cost structure, aided by our
electrification and affordable housing Tax was ` 604.74 crore, as against asset-light business model, enabled
also augur well for the consumer 4,570.84 crore and ` 494.70 crore us to cope better with the high level
electrical goods industry. At Crompton, respectively in the previous fiscal. of uncertainty throughout the year. A
we offer products in both the mass as rigorous focus on cost controls along
well as premium segments, enabling Our sustained results were driven with ` 153 crore saved in the year
us to reach out to a wider consumer by a strong performance from our from our ongoing cost rationalisation
base across income groups. The Electrical Consumer Durables segment exercise, Project Unnati, further
COVID-19 pandemic has also fuelled which includes our fans, pumps and
helped in delivering a strong/healthy
the demand for electrical appliances appliances businesses. In the fans
operating performance.
that can help consumers and their business, we introduced superior new
families to live healthily and stay safe. additions, especially in the premium
Five-dimensional Growth Strategy
Further, with the work from home trend category, and enhanced our reach,
We continue to execute against our
expected to continue, consumers which enabled us to increase our
five-dimensional plan, taking the
want smart electrical products that can market share. In the pumps segment,
necessary actions and making the
make their life easier and productive. with the plan of creating product
essential investments to shape the
We are proactively investing in R&D to differentiation and segmentation,
various new products were introduced future of your Company and deliver
respond to these new market trends
across segments, especially in long-term growth and outperformance.
and develop products that meet
emerging expectations. premium segment. In the appliances
segment, the revamping of our product Brand excellence: Our success in
Business Performance range in the water heater, air cooler and building a resilient brand was reflected
Despite the manufacturing and mixer grinder categories, undertaken through robust improvement in
distribution hurdles faced in the early over the past few years, rewarded brand recall in focus segments and
part of the pandemic, a dip in market us well. In the Lighting vertical, while geographies and in our strong sales
demand till almost the first half of the B2C business witnessed healthy across categories in a difficult year.
the year, and commodity inflation volume growth, this was partly offset by To further deepen our engagement
in the fourth quarter, we reported a the subdued performance of the B2B with consumers, we are reaching out
resilient financial performance for the business due to slower than anticipated to them through multiple channels.
full year. Our Total Income stood at recovery in the institutional sector. Responding to the step-change

Annual Report 2020-21 03

Letter from the Chairman

“
in e-commerce growth, we have productive, make processes efficient
enhanced our focus on direct-to- and make product relevant. Acutely
consumer programmes, which aware of the impact that digitisation has
includes our presence on leading on operations, we are taking our digital
I want to thank all e-commerce platforms. transformation journey to the next level
the people that help with our ongoing programme ‘Urja’.
Portfolio excellence: By driving
to make CGCEL customer-centric innovation through Organisational excellence: Our
successful - our investments in R&D and technology, Company’s progress is rooted in the
our emphasis is on building a strong skills and capabilities of our people. We
consumers, channel portfolio of differentiated products continued to invest in their development
partners, suppliers, across categories. We also remain by offering extensive opportunities for
focussed on developing premium learning through specially-designed
investors and
category products and driving their training programmes. Throughout
employees, and last saliency. Our premium category this pandemic, our foremost priority
but not the least, our products have been generating strong has been the health and safety of
sales year-on-year, endorsing the our employees. Apart from adopting
community. strength of our strategy. government and public health authority
guidelines, additional measures, such
Go-to-market excellence: Our go-to- as the installation of the MyShield
market execution remained strong in app to enable contact tracing and
terms of leveraging technology to drive monitoring of physical presence, were
productivity and improve customer put in place to support the health and
reach, building alternate channels well-being of all our employees. We
like ecommerce, modern retail and also enabled them with technology
rural. We focussed on enhancing our solutions so that they could work
superior partnership with our trade remotely from their homes with safety.
partners and supporting them during
the lockdown with extended credit In Closing
and other support areas. Continuous I want to thank all the people who
efforts and investments are being have helped Crompton succeed -
made to improve the number of our consumers, channel partners,
retail points where our products suppliers, investors and employees,
are available. and last but not the least, our
community. Crompton could not have

` Operational excellence: In addition to

building our portfolio and enhancing
grown into the Company it is today
without your confidence and support.
our reach, we believe that a culture While the pandemic has created near-

604.74 crore of continuous improvement will

be a critical enabler of business
term challenges, we are well placed to
recover and deliver sustained value in
Profit after tax in 2020-21 performance. Several new initiatives the years ahead.
were implemented to drive operational
excellence. We continued to invest Stay safe, stay well.
in growth initiatives and strengthen
digital enablement and help achieve Sincerely,
the objective of enabling the business Hemant Nerurkar
using technology i.e.: Make people Chairman

04 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Our 5-Dimensional Growth Strategy

01
Brand
Excellence

05 Portfolio
Excellence

02
Organisational
Excellence

Go-To-
Market
04 Excellence
Operational
Excellence 03

Annual Report 2020-21 05

Brand Excellence
We continue to grow by building deeper consumer and channel
connect and offering meaningful & differentiated innovative
products. These principles of growth has led the brand to grow
despite the tough economic environment. Staying true to the
brand core proposition, we offered consumers products making
home the best place to hangout during the pandemic.

Crompton is seen as a reliable brand water heaters delivering the “perfect ease of availability through these
that has been trusted for generations. hot water” in our campaigns. These platforms knowing the future growth
Our focus over the last few years brand building efforts resulted in driving prospects the e-commerce channel
has been to make the brand more consumer preference for our brands offers.
aspirational and thus build a stronger thereby an increased market share in a
connection with the consumers. slowed down economy. Staying conscious of the consumer
Building this stronger connection need to experience the product in the
became particularly more important We further enhanced discoverability offline world, we plan to offer great in
during last year due to evolving of our brands on the e-commerce store experience with our future retail
consumer touchpoints in a pandemic space by increased investment in programme. We plan to offer great
environment. We intensified our efforts development of A+ content and better product displays, demo kits, visualisation
to reach out to each stakeholder in the product placement. We continue to tool and after sales support through
value chain be it the channel partner, aim at higher product visibility and this channel.
influencer or the consumers by driving
brand awareness & consideration
through multiple touchpoints. Newspaper advertisement
With the growing traction of digital
platforms during pandemic, we
maximised our reach on the online
platforms through e-commerce and
social media network. With these
initiatives, we aimed to maximise our
Top of Mind recall with the consumers
and drive consideration for our brands.

Our brand marketing campaigns talk

about the unique blend of pioneering
technology, elegant aesthetics and
energy efficiency offered in our fans
& lights range. Our appliance range,
including water heaters and air coolers,
were positioned as ideal additions
to your home with their modern
and contemporary designs. We put
particular emphasis on Crompton SilentPro fan

06 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Outdoor advertisement Television commercial

Pumps

TVC screengrab of air cooler

Social Media Posts

Immensa

Air Cooler Pumps

Water Heater Mixer Grinder Social Distancing

Annual Report 2020-21 07

Portfolio Excellence
We put great thought into each product design. Each item in our
portfolio has its USP, making it a differentiated product. Every
Crompton product guarantees durability, superior aesthetics,
performance and best-in-class energy efficiency.

The Crompton brand has given the market. This was led by our premium Our consumer lighting business
Indian consumer some pathbreaking range of fans and their increased finished the year with strong growth
products, such as the silent fans, availability. Key innovation in this despite the lockdown and slow
with their anti-dust technology and segment includes launch of designer unlock having a major impact in the
remote control; anti-bac LED bulbs fans with 5-star ratings and energy- first two quarters. The B2B segment
that serves dual purpose by providing efficient fans with BLDC technology. was adversely affected as many
illumination and killing bacteria, while office buildings and large commercial
also limiting energy consumption for In the pumps segment, we have establishments, such as malls and
the consumer. These are all result of launched ‘Mini’, a premium range multiplexes, remained closed for
our consistent investment in research of residential pumps, two variants of months. Nevertheless, we have
and development (R&D), the very solar pumps, new enhanced variants launched some great products in this
wellspring of our innovation. of existing submersible pumps, segment knowing the high potential
Ultimate and Magna series with LED lighting offers. Challenger, Pluto,
Consumers today want technology, superior performance. Reliability and Falcon, Parabola are some of the
aesthetics, energy efficiency, for an energy efficiency through technology series of products that were launched
aspirational lifestyle. Adding value are the most important features of in the professional lighting, exhibiting
to consumers’ daily lives, through our pumps. superior features, performance and
completely new ideas and novel energy efficiency.
technology, is the thought behind every Power-saving technologies are also
product that we add to our portfolio. core to our new appliances launch, In the consumer lighting segment, we
This philosophy has been extended to such as water heaters with 5-star launched Eye Smile range of panels,
the way we integrate Internet of Things ratings, mixer grinders, and air coolers. Star Lord and Super Lumen batten
(IoT) into our product lines. Energy efficiency has indeed been an with superior consumer features and
important consideration for consumers, performance delivering superior value
During the year, we have retained as longer periods of staying at home to the consumer. Our strategy is to
our leadership in the fans segment even after the unlock has meant build greater consumer awareness of
commanding a greater share of the increased use of such appliances. these products.

Fans

Gianna Markle Designer

Torpedo Torpedo Torpedo High Flo High Flo High Flo Wave
Table Pedestal Wall Wave Wave Plus Plus - Wall
Mounting Plus - Table Mounting
SilentPro

08 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Pumps

Mini Neo Armor Digital V6 Borewell submersible V4 Borewell submersible Aquagold 150
Control Panel ULTIMA MAGNA Series 4WSS Series

Appliances

Optimus Neo 35i Ameo Neo Ritz Plus Iron InstaDelight InstaComfy Lit

Lighting
B2B

Challenger Pro 500W Challenger Pro Pluto Pro Plus Pluto Pro

Falcon Pro - I Raptor Pro II Rover Pro Parabola

B2C

Super Lumen Immensa Flood Light Street Light

Star Lord Star Dura Eye Smile Star Striko

Annual Report 2020-21 09

Go-To-Market Excellence
The primary objective of our go-to-market strategy is to get
as close to the potential customer as possible across
geographies, through the traditional sales channels and through
digital commerce.

As economic activities across report and lets us track sales looking population centres in the next few
India resumed slowly following the at the big picture. years. Tie-ups with micro-finance
lockdown, we honed our strategy to institutions are yet another way to
enhance our presence in the most The sales and service teams have reach out to the rural and peri-urban
territories, both in terms of demand been given new and simpler KPIs (key consumers and help them become
and logistics. Using big data, we performance indicators) to motivate Crompton customers.
divided our markets into red (COVID them to garner a larger market
share for Crompton. In addition, Our go-to-market strategy is also about
hotspots), amber (districts with limited
our employees are being trained in staying connected to customers’ after
cases), green (districts with zero
tele-sales and digital channel sales and encouraging a lifelong
cases), our special focus was on the
assessment and appointment. relationship with the Crompton brand.
amber and green zones to drive sales.
To facilitate this and to eliminate the
With this industry-first RAG model,
Through a ‘Son of the Soil’ model, barriers of time and place, a first-
Crompton has become a pioneer not
we are targeting increased presence of-its-kind WhatsApp chatbot has
just in technology, but also in go-to-
in population centres that have been launched, enabling 360-degree
market strategy.
population of 10,000 - 1 lakh. The complaint registration for a better
We are leveraging technology in initiative has taken off very well, and consumer experience.
various ways to expand and deepen we aim to cover 60% of high potential
our presence in the most cost-efficient
manner. Some of our key digital
initiatives in the area of go-to-market
include the Dealer Portal, through
which channel partners can directly
engage with Crompton, and can also
monitor stocks, orders etc. This facility
is being used by about 400 channel
partners now. More features are being
added to this portal to offer the direct
channel partners still more benefits,
and the portal will soon become
available as a mobile app, so that the
channel partners can access all the
information on the go.

Integration of all the sales-related data

being generated by various parts of
the Company has been done through
the initiative ‘One Truth For All (OTFA)’.
This helps create a consolidated

10 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Operational Excellence
A sharp eye on cost efficiency and the adoption of best-in-class
technologies and processes help our operations achieve all the
goals, and in turn, boost business performance. We are always
working on streamlining our operations and bringing in more
digitalisation, and this fiscal year has accelerated these measures.

In the year under review, we and confusion and letting the positive continuous assessment prevents any
implemented several new initiatives to energy flow without any hindrance. build-up of inefficient processes.
achieve a greater degree of operational At Crompton, the first two steps of 5S
excellence. These are: 5S, Quality have been applied to product lines, Structured Problem-Solving: This
Circles, Daily Work Management, increasing productivity. initiative takes cognisance of the
Glass Wall, and Structured Problem- fact that many problems need cross-
Solving. Together, these initiatives Quality Circles: Several issues can functional work teams to be resolved
contribute to: and do arise on the shop floor of a permanently and to make way for a
manufacturing plant. This initiative is higher level of efficiency. Seven basic
▶ 
Creating a clutter-free work conducive to amicable and on-the- tools of quality management are
environment, enabling easy spot resolution of these issues by the incorporated into this initiative.
movement of people and plant employees themselves, as they
equipment and lowering the risk are best placed to know the details of Alongside this, we invest in continuous
of mishaps that might lead to the the process and the task. people training, so that the initiatives
wastage of time and cost, or even are implemented successfully,
an injury. Daily Work Management: Proper because human capability is the
quality management does not happen ultimate decider of business success -
▶  ncouraging shop-floor interactions
E by chance; it requires the successful it really is “people powering progress”.
for faster and more effective problem execution of a series of activities. To date, almost 7,000 people,
resolution by the employees The stability and capability of all our including vendors, have been given
themselves, so that problems processes is vital for ensuring that competency training.
are not escalated and team spirit every Crompton product meets the
is upheld. highest standards of quality. This Existing initiatives in the Company that
initiative has been introduced in order continued to drive utmost efficiency in
▶ 
Monitoring of a series of daily
to embed world-class practices in 31 operations include Project Delight and
activities for quality maintenance, Vendor Delight.
audit areas.
so that there is no lapse in quality
management. Glass Wall: Under this initiative, KPIs The ongoing digitalisation programme
are displayed for everyone to see ‘Urja’ has been bolstering our
▶ Motivating employees and tracking
on dashboards placed at our plants core business through technology
performance by displaying key
and departments. The metrics are adoption as well as improving
performance indicators where they
constantly reviewed, and performance stakeholder relationships and
can see the KPIs every day.
gaps are identified and corrected. This enhancing data security.
▶ Facilitating cross-functional
collaboration for solving complex
problems as a team.

5S: This Japanese concept is in

short for ‘Sort, Set in order, Shine,
Standardise, Sustain’ methodology.
With the typical Japanese attention to
a tidy space, the 5S initiative focussed
on keeping everything where it
belongs, thereby eliminating clutter Auto Powder coating at Swiss make plant installed at Kundaim Plant

Annual Report 2020-21 11

Organisational Excellence
We are in the business of manufacturing machines, but it is the
people who power our progress. They are the ones who give
us an edge in the market, build customer engagement and
loyalty, and maintain a constant process of R&D-led innovation.
We nurture our invaluable human resource by creating a talent
pipeline for the Company and offering career development
opportunities to every employee.

In an extraordinary year, we were able

to navigate unprecedented challenges
and emerge stronger because of the
complete commitment of the talented
Crompton team. Their dedication and
ingenuity not only ensured business
continuity amid circumstances never
seen before, but also helped us
grow our business by overcoming
all the hurdles and by seizing new
opportunities.

The first priority during the year under

review - and it has remained so in the
next fiscal, with the second wave of
the pandemic - was to ensure that the
COVID-19 safety protocols were fully
implemented in each and every part
of our organisation. Human health
took precedence over everything
else, even as our manufacturing
facilities reopened as per Government Social distancing protocols followed in meeting rooms

directives. Regular training was given

to all employees, suppliers, vendors, devised the MyShield app, installed under which the best employees were
and other stakeholders, such as on all employees’ smart devices, named ‘COVID-19 Heroes’.
transporters, to make sure that
to enable contact tracing, violation
sanitisation and preventive behaviour
tracking, and monitoring of the A part of our workforce was moved to
was maintained always. Everyone was
physical presence of people entering the work from home (WFH) system,
familiarised with the safety guidelines
our plants. To encourage employees and immediate infotech support was
issued by the Government of India and
to demonstrate exemplary Crompton given to them to make the transition
asked to abide by them without fail.
behaviours and become a role model with minimal interruptions. Field sales
Just as the Government was doing for their peers in these difficult times, teams moved to tele-calls with all our
its own contact tracing through the we started a pandemic-specific business partners and received all the
Aarogya Setu app, at Crompton, we ‘Rewards & Recognition’ programme, digital support they needed to carry

12 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

“
on seamlessly and continue winning for us. The management regularly
orders. Our plant staff returned to spoke to the labour union leaders to
the shop floor once the Government discuss problems and solutions.
directives made it possible for us to
resume operations, and 100% safety To help employees proactively identify
All Crompton employees
protocol was observed. problems, come up with solutions, received their full salaries
and develop their overall performance, and benefits during the
All Crompton employees received we introduced virtual training and lockdown period.
their full salaries and benefits during learning modules, since physical
the lockdown period. training sessions had to be deferred.
Accessing and using these modules
Communication at every level, always and undergoing online training
a key element of organisational have given our people the skills to employee satisfaction and address
excellence, became central to the emerge as a completely future-ready their concerns.
scheme of things when the pandemic workforce.
put physical distance between The leaders at Crompton kept in touch
Crompton people. It has been With the whole country thrown into an with their direct reportees through
used very systematically through unprecedented situation, employees initiatives such as ‘DIL SAY’, which are
institutionalised channels of two-way needed and received additional free-wheeling sessions allowing open
communication, including virtual support from our HR department and discussions among employees, their
meetings and the traditional town hall their respective function heads. Their peers and their managers. One of the
meetings. Constant communication feedback was continuously gathered morale-boosting rituals introduced to
kept motivation levels high and and efforts were made to iron out energise employees was the monthly
ensured transparency, which is a every issue. Surveys were undertaken ‘Thumbs Up’ sessions, reinforcing the
fundamental organisational principle at all Crompton locations to measure message of positivity.

Health and safety protocols at Vadodara Safety precautions at Vadodara

Annual Report 2020-21 13

Standalone Financial Highlights

NET WORTH (` Crore) REVENUE FROM OPERATIONS (` Crore)

1,919

4,750
4,512
1,468

4,479
1,098

4,105
720

4,017
518

2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21

EBIDTA (` Crore) / EBIDTA Margin (%) PROFIT AFTER TAX (` Crore)

780

605
656
634

495
562

403
502

324

16.43
283

14.16 14.53
13.69
12.49

2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21

BASIC EPS (`) RoCE (%)

9.64

68.60
58

58
7.89

55

49
6.42
5.17
4.52

2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21

14 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Giving Back to Society

Our Corporate Social Responsibility (CSR) programme ‘UJJVAL
DEEP’ is rooted in our philosophy of being a responsible business
and shared value for all stakeholders. With sustainability at its
core, our CSR efforts entail skill training, water conservation
and community development. We also extended our support to
COVID-19 relief initiatives across the country.

Vocational Skills Training: in villages. These projects also lead to strengthening of water resources for
Through our skill training programmes, improved employment options within agricultural land development.
we aim to provide the youth an agriculture and allied activities for
opportunity to earn a livelihood. We communities. Employee Volunteering:
have partnered with institutions to We launched a platform to drive
impart youths with skills in the fields In 2020-21, we supported a project employee engagement and to
of electrical, plumbing, repair of home that facilitates climate change provide an opportunity to partner its
appliances, operation and upkeep adaption in 4 drought prone villages in CSR initiatives. The ‘Fit Crompton
of sewing machines, and soft skills. Beed, Maharashtra. We also continue Movement’ encouraged employees to
These students were also provided to undertake watershed development walk, run and work out. The initiative
employment assistance. initiatives in seven villages in raised ` 7.59 lakhs and this amount
Maharashtra. In the village of Paregaon was utilised to provide 1,380 Happiness
Community Projects: Khurd, Ahmednagar, we aided the Boxes to children in Vadodara.
The Crompton CSR Foundation and
Akshaya Patra distributed 14,000
‘Happiness Boxes’ which consisted of
ration supplies, toiletries, and stationery
to children and their families.

In collaboration with Children’s

Movement for Civic Awareness
(CMCA), online sessions on critical
citizenship and life skill programmes
were imparted to 1,200 school
students. Stationery items to 447
students in government schools were
provided. Workshops for 4,930 college
students were held on topics such
as gender, personal integrity, India’s
heritage and taking down fake news.

Water Conservation:
We support water conservation
projects that promote water security

Annual Report 2020-21 15

Giving Back to Society

COVID-19 Initiatives: Food and sanitation kits 1,500 vegetable packets to families in
Facilitating patient care A total of 90,000 hot meals were Kundaim village.
We lent our support to frontline distributed to daily wage earners,
We supported a drive to distribute over
health workers and police officials migrant workers, unemployed, and
300 food and sanitation kits to migrant
by supplying PPE kits, masks, dependents in Vadodara through our
partnership with the Akshaya Patra workers passing through Ahmednagar
face shields, and ventilators to the
Ahmednagar Civil Hospital. We also Foundation. In Bethora, we distributed to go back to their hometowns of Bihar,
provided critical equipments for ration kits to around 700 families. Madhya Pradesh, Chhattisgarh, Uttar
patient care such as ABG machines, Crompton supported in distributing Pradesh and West Bengal.
monitors, oximeters, etc. thereby
building the capacity of 10 hospitals
across Maharashtra. We helped set
up a new ICU ward at Sion Hospital
by providing essential equipment and
PPE kits to medical staff.
We also collaborated with Cloud
Physician health care partner
to provide a tele-ICU facility in
Osmanabad District Hospital and ESIS
Hospital in Mumbai.
Crompton sponsored masks and
gloves for children undergoing cancer
treatment at St. Jude Care Centre.

16 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Awards & Accolades

SilentPro Enso Ceiling Fan was the winner Crompton featured in under LEADERSHIP
at the prestigious iF Design Awards category of S&P BSE 100 (BSE 100)
Companies evaluated on Indian Corporate
Governance Scorecard by IiAS

Crompton’s Anti-Bac LED Bulb is India’s first

lamp that has an antimicrobial effect and
protects against bacteria, mold, and fungi
present in the atmosphere

Annual Report 2020-21 17

Corporate Information

Board of Directors Statutory Auditors

M/s. Sharp & Tannan, Chartered Accountants
Mr. H. M. Nerurkar (DIN: 00265887)
Chairman and Independent Director
Secretarial Auditors
M/s. Mehta & Mehta, Company Secretaries
Mr. Shantanu Khosla (DIN: 00059877)
(Till 2020-21)
Managing Director
M/s. Parikh & Associates, Secretarial Auditors
Mr. D. Sundaram (DIN: 00016304) (From 2021-22)
Independent Director

Mr. P. M. Murty (DIN: 00011179) Internal Auditors

Independent Director M/s. Grant Thornton India, LLP

Ms. Smita Anand (DIN: 00059228) Registered and Corporate Office

Independent Director Tower 3, 1st Floor, East Wing, Equinox Business Park,
LBS Marg, Kurla (West),
Mr. P. R. Ramesh (DIN: 01915274) Mumbai - 400 070. T: +91 22 6167 8499
Independent Director F: +91 22 6167 8383 W: www.crompton.co.in
(With effect from 21st May, 2021)
Bankers
Ms. Shweta Jalan (DIN: 00291675) ICICI Bank
Non-Executive Director Standard Chartered Bank
IDFC First Bank
Mr. Sahil Dalal (DIN: 07350808) Citibank N.A.
Non-Executive Director HDFC Bank
Corporation Bank
Mr. Promeet Ghosh (DIN: 05307658) State Bank of India
Non-Executive Director Axis Bank Limited

Mr. Mathew Job (DIN: 02922413) Registrar and Share Transfer Agent
Executive Director & Chief Executive Officer KFin Technologies Private Limited
(With effect from 22 nd January, 2021) Selenium Tower B, Plot No. 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Chief Financial Officer Hyderabad - 500 032
Mr. Sandeep Batra
Debenture Trustee
Company Secretary & Compliance Officer lDBI Trusteeship Services Ltd.
Ms. Pragya Kaul Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001

18 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Management Discussion & Analysis

INDIAN ECONOMY OVERVIEW Continuous focus on innovation to drive differentiation and

The Indian economy contracted by 7.3% in FY21, as creating value has provided a growth impetus to this sector.
compared to 4.2% growth recorded in the previous fiscal
year. The first half of the fiscal year witnessed overall FANS
economic slowdown, due to COVID-19 onset resulting in The fan market in India is well-established and continues to
show good growth. The fans market is projected to surpass
stringent lockdowns severely impacting economic activity,
` 125 billion by 2023. Increasing spending power, rising
bringing manufacturing and trading activities to a halt. As the
temperatures and modular homes is expected to boost
economy emerged out of the pandemic-induced recession
demand for electric fans in India. Demand for fans is likely
in the second half, it registered a positive GDP growth of
to witness a surge in the coming years especially in the rural
0.4% in Q3 and 1.6% in Q4 on the back of a tailored fiscal
areas as the government plans to invest significantly in rural
stimulus of ` 20 trillion under ‘Self-Reliant India’ movement,
electrification.
robust financial market and structural reforms initiated by
the government, along with revival of consumer confidence. (Source:https://www.businesswire.com/news/
The growth reflected through uptick in manufacturing activity home/20180706005112/en/The-Electric-Fans-Market-in-
and GST revenues crossing ` 1 trillion mark for a stretch of India-2018-Analysis-Forecasts-2013-2023---Market-to-
six months since October 2020 and hitting a record figure of Surpass-2-Billion-by-2023---ResearchAndMarkets.com)
` 1.23 trillion in March 2021.
Key Growth Drivers:
The resurgence of COVID-19 cases since March 2021 is
1. Focus on Energy Efficiency:
posing a serious risk to economic recovery and weighing
down India’s GDP growth projections for FY22. Considering The Bureau of Energy Efficiency (BEE) initiated the
the impact on economically important states, Q1FY22 Standards & Labelling programme for equipment and
could witness lower economic activity and demand than appliances to provide consumers important information
anticipated due to stringent lockdowns and restrictions. about energy saving and to help them make informed
Multiple states have been enforcing lockdowns of varying choices. BEE deferred its slated plan of enforcing new
severity, leading to reduced mobility and unemployment, energy labelling norms from July 2020 to Jan 2022.
leading to economic distress. The change in these norms is intended to reduce the
energy consumption of appliances and reduce its
However, the government has taken several initiatives with carbon footprint without diminishing its service quality.
the objective of revitalising the economy. Proactive measures This will boost demand for energy-efficient products.
taken by the Government is expected to offer a sustained
2. Performance of Housing Sector:
long-term recovery of the economy. Favourable fiscal and
monetary reforms, ease in credit policies and concentrated The residential sector is expected to grow significantly
stimulus packages for distressed sectors and vaccination with the central government aiming to build 20 million
roll-out are expected to enable revival in economic growth. affordable houses in urban areas across the country
by 2022, under the ambitious Pradhan Mantri Awas
(Source:https://www.financialexpress.com/budget/union- Yojana (PMAY) scheme. The smart city project with a
budget-2021-fm-sitharaman-proposes-steps-to-increase- plan to build 100 smart cities, is a prime opportunity for
funding-for-national-infrastructure-pipeline/2184391/) the growth in this sector. (Source: IBEF)
PUMPS
INDUSTRY OVERVIEW
The Indian water pump market size is estimated to be at
Electrical Consumer Durables Industry in India ` 71 billion. Rapid industrialization and power generation,
The Electrical Consumer Durables (ECD) segment in are expected to have a positive impact on pumps market
India is likely to grow owing to a demographic profile with growth. Thrust on water infrastructure will stimulate further
higher disposable income, access to easy finance options, growth with the expansion in water and sanitization
increasing electrification of rural areas, rapid urbanisation programmes. In addition, rising government expenditures
and growth of nuclear families, and emerging consumer for the development of a modern irrigation system in the
trends of ‘Home Proud’ and ‘Health & Wellness’ etc. agriculture sector is expected to drive market growth.

Annual Report 2020-21 19

Key Growth Drivers: demand for replacement of conventional water heaters
with advanced systems.
1. Intensified demand for water and wastewater
management
B. Air Coolers:
The growing population and increasing water usage
across multiple industries are expected to promote the The Indian air cooler market is projected to grow due
establishment of new water treatment plants. This, in to rising temperatures, increasing disposable income,
turn, is expected to fuel the demand for pumps which growing demand among the middle class and the lower
are extensively used in wastewater treatment plants to price of air coolers as compared to air conditioners.
process used water. Tech-driven products with improved aesthetics are
augmenting the growth of air coolers.
2. Government Initiatives
Government policies promoting energy efficiency and Lighting Industry in India
safety standards are projected to play an important The lighting industry is expected to be the next digital
role in market growth. Several government authorities disruptor, owing to the increasing adoption of Internet
are restructuring their present policies and introducing of Things (IoT). LEDs have gained mainstream in the
new frameworks such as development of sanitization lighting market because of its competitive price and
services, rural electrification which is favouring the energy efficiency. Rural electrification programmes,
usage of pumps. The government’s aim of providing infrastructure development, construction of new homes
drinking water to every household by 2024 under and consumer demand for improved and energy-
‘Jal Jeevan Mission’ will drive the demand for pumps efficient lighting will drive growth for this industry.
segment.
The government under PLI scheme for white goods
3. Solar-powered Water Pumps (Air Conditioners and LED Lights) has announced an
The operation of solar-powered pumps is growing incentive of 4% to 6% for a period of 5 years to the
mainly due to lower operation and maintenance costs companies/entities engaged in manufacturing of
as compared to pumps powered by an electric motor. LED lights and components of LED lights subject
Government’s Kisan Urja Suraksha evam Utthan to threshold of cumulative incremental investment
Mahabhiyan (KUSUM) scheme, intending to instal and incremental sales. This step will boost domestic
solar-based water pumps will provide impetus to this manufacturing, create economies of scale, enhance
segment. exports and create a robust component ecosystem
and employment generation.
4. Growing dependency on groundwater
With the increasing irregularity of monsoon across the COMPANY OVERVIEW
country, the consequent dependency on groundwater About the Company
has increased. This in turn is driving the demand for Your Company is one of India’s leading consumer electrical
high performance and energy-efficient water pumps companies present in the Electrical Consumer Durables
across India. “ECD” and Lighting segment. It manufactures and
distributes a wide range of consumer products ranging from
APPLIANCES fans, pumps, and appliances (Water heaters, air coolers,
The appliances and consumer electronics industry is mixer grinders, iron) in the ECD segment and a full range of
expected to see acceleration in growth on account of surging
lighting products.
rural consumption, increasing penetration of retail, growing
middle class, increasing number of nuclear families, a wide Your Company is a market leader in fans, domestic pumps
choice of brands and products at various price points. and street lighting segments.
Feature-rich products offering ease of use and improved
aesthetics will drive premiumisation in this segment. Manufacturing Locations:
• Goa
A. Water Heaters: • Vadodara
Increasing hot water demand from various residential
• Ahmednagar
applications such as bathing, washing, cleaning, and
cooking, is anticipated to augment the demand for • Baddi
water heaters. Growth is majorly attributed to the rising

20 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Comprehensive Product Portfolio New Launches

Fans Pumps Appliances Lighting Continuing the thrust on innovation, your Company
has launched ceiling fans and designer fans with 5-star
Ceiling Fans Residential Water Heaters LED Lamps
ratings along with energy-efficient fans with BLDC
Pumps technology – Gianna Ceiling Fans, Torpedo TPW Fans,
Table Fans Agricultural Air Coolers LED Battens Drift Air & Anti Dust in Exhaust Fans, Energion E-Save
Pumps under BLDC fans.
Pedestal Fans Solar Pumps Mixer Grinders LED Panels In the Pipeline
Wall-mounted Specialty Irons LED Streetlights Your Company is in a good position to transition to the
Fans Pumps and Floodlights new BEE norms with respect to its existing portfolio.
Ventilating Small Kitchen High Mast/ Your Company will continue to focus on building up
Fans Appliances Streetlighting the premium portfolio. It will widen its product portfolio
Poles through differentiated offerings at lower cost and
better aesthetics. It also plans to export to SAARC
Heavy-Duty Interior and
countries; and will focus on channel expansion and
Exhaust Fans Architectural
rural programmes.
Lighting
Air Circulators High Intensity 2. Pumps
Discharge Your Company continued to show growth in residential
Lamps pumps. Your Company’s cost-saving initiatives enabled
Industrial Fans Incandescent it to maintain its gross margins. Your Company gained
Lamps growth in both economy and premium segment in
residential pumps.
Compact
Fluorescent New Launches
Lamps Given the focus on premiumization, your Company has
Fluorescent launched ‘Mini Neo’ and ‘Mini Everest’ water pumps,
Tubular Lights thereby strengthening the Mini Series Portfolio. Your
Company has also launched two variants of Solar
Business Segments Pumps and would focus on building the Solar Pumps
Electrical Consumer Durables (ECD) Business segment. Several variants of submersible pumps, with
Despite commodity and other headwinds, Electric enhanced features were added to the existing range
Consumer Durables (ECD) business has shown improved and products with superior performance in Ultima and
growth trajectory due to ongoing efforts in innovation and Magna series were also launched.
new product development, supported by timely execution
Future Plans
of Go-To Market initiatives including development of
Your Company will continue to leverage its brand equity
alternate channels like e-commerce, modern retail, rural etc.
and introduce products in the premium range in both
The Company’s range of consumer electrical appliances/
domestic and agriculture pumps. The government’s
durables (ECD) has continued to see strong demand, aided
pro-solar initiatives such as the PM Kusum scheme
by the work-from-home culture.
has prompted your Company to enter the solar pump
(Source:https://www.zeebiz.com/companies/news-ecd- business. Your Company also aims to grow faster than
business-had-a-contribution-of-15-in-revenues-of-the- the market in the agricultural pumps segment.
quarter-shantanu-khosla-crompton-greaves-69723)
3. Appliances
1. Fans
Your Company registered notable growth in consumer
Your Company continues to strengthen its leadership appliances in terms of both value and volume. It
in the fans segment and increase its market share. focussed on increasing the efficiency of its products
This was primarily attributable to its faster growth in and improved margins without compromising on
premium fans and wider availability of its products quality. It also launched a host of innovative products
across India.

Annual Report 2020-21 21

 with 42 models introduced across all categories Company registered growth over the previous year in
including smart air coolers, anti-bacterial products, and the B2C segment with double-digit growth in ceiling
a smart plug. lights. Your Company also improved its gross margins
in both the B2C and B2B segment through weeding
A. Water Heaters out inefficiencies and better inventory management.
This category saw continued gains in market The B2B segment, however, was impacted by supply
share aided by new products and distribution chain issues due to the pandemic.
expansion. During the year, your Company further
launched new products such as Rapid Jet Plus, New Launches
Aura 5*, Arno Neo 5* under this category. In B2C, your Company launched the smart IoT lamp
(Immensa) and plans to launch more IoT products
B. Air Coolers soon. Your Company, based on market demand and
Your Company witnessed steady growth in the research, launched Star Lord Panels and Downlighters,
air cooler segment during the year and continued Star Striko Surface, Star Dura Panel Eye Smile Panel
to launch coolers with advanced technology and and revived its current portfolio.
better features. As people were working from
home demand for coolers witnessed a surge. It Future Plans
launched new air coolers such as Gale Desert Going forward, your Company aims to have a three-
Cooler and Cool Breeze. pronged strategy to achieve good growth in the B2C
segment. The first is to have the best or the most
C. Other Appliances innovative products especially around emerging or
In this category, your Company sells mixer grinder more accepted products such as ceiling lights and
and irons. Mixer grinder business grew significantly battens and IoT products. The second is to increase
both in volume and value terms through product brand awareness so that the brand name of Crompton
portfolio refresh and range expansion, improved resonates with consumers looking at lighting products.
supply chain and increased distribution. Your The third is to have the best customer and consumer
Company launched Sierra, Treat, Treat X range in service in the industry. For B2B, your Company aims to
mixer grinders. It also launched 3 steam irons and create efficient designs and foray into newer categories
4 dry irons during the year with better technology such as solar and decorative.
and advanced features.
Five-Dimensional Growth Strategy: Your Company’s
Future Plans strategic objective remains to grow faster than the
market and become a leading brand in all its business
The appliances category is one of the key areas of
segments. It has defined five-dimensional excellence
growth for your Company. It will continue to offer
pillars through which it aims to achieve its goal. These
appliances with more conveniences and features to
excellence pillars are branding, portfolio, go-to-market
meet the growing demands of its consumers. Your
strategies, operational and organisational leadership.
Company’s focus is to expand the core, which is the
water heater and air cooler product lines followed by
small domestic appliances. The appliance business has 1. Brand Excellence
doubled in the last three years and your Company will Your Company’s resilient and strong brand value
continue to build on this momentum by strengthening has enabled it to gain market share across all
its core categories and developing full range of kitchen product categories. Your Company’s constant
appliances. The focus would remain on offering endeavour has been to deepen engagement with
premium features and smart technology at affordable consumers and meet their needs and desires.
pricing. Your Company is reaching closer to its consumer
through its wide-ranging efforts across various
Lighting Business touchpoints to strengthen its brand awareness.
The lighting business was affected by the lockdown
Your Company ramped up its brand awareness
and consequent clampdown of economic activity but
initiatives across media to increase consumer
picked up after economic activities resumed. Your
recall of its products. With increasing number

22 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

of consumers moving online, your Company is excellence enables your Company to deliver
intensively leveraging the digital platforms and products, be it in the affordable or premium
social media to reach out to them. The campaigns category, with enhanced performance and
have resonated well with consumers and driven a durability, superior aesthetics, and improved
favourable response. energy efficiency.

Your Company has built upon its brand R&D is the bedrock of technological expertise, the
architecture across fans and lighting segments enabler for innovative product launches across
to create a well-framed structure to aggressively all categories. Your Company has accelerated
drive customer reach and sales. Your Company innovation and portfolio expansion and
has worked on increasing consumer awareness of incorporated newer, energy-efficient technologies
appliances segment, with large-scale advertising in fans, pumps, lights, and appliances. Further,
on water heaters, positioning the benefit as ‘The it is constantly eyeing opportunities in Internet
Perfect Hot Water’. It has also been focussing on of Things (IoT), energy efficiency and cooling
promoting air cooler range of products, which has technologies to design products with enhanced
resulted in stronger sales and market share gains. functionality.
More interestingly, new packaging will be rolled
out across all product segments. Your Company continues to administer leadership
in the fans segment with increased market share.
Another important thrust area for your Company This is primarily attributable to premium range of
is e-commerce. Understanding the pulse of the fans and increased availability of products. One
consumers and the way they shop; it has been of the major highlights of the year was the launch
increasing online visibility of products to increase of designer ceiling fans with 5-star ratings and
sales through this channel. The digital marketing energy-efficient fans with BLDC technology.
strategy is structured to drive more traffic and
discoverability of products on e-commerce While the pumps business witnessed sluggish
platform. growth in the first half, your Company had
launched two new variants in the ‘Mini’ premium
Your Company is also working towards upgrading residential pumps segment – Mini Neo and Mini
the in-store facilities by leveraging advanced Everest along with two variants of solar pumps
technology to enhance the shopping experience and several variants of enhanced submersible
of consumers. It is exploring the concept of pumps range called as “Ultima” & “Magna” with
perfect stores, which showcases the product and superior performance. It plans to leverage new-
its features through product displays, dummies, age, advanced technology in motors to enhance
room sets, catalogue demos, visualisation tools, efficiency of pumps.
and colour cards. Along with this, customisation,
installation support, usage guidance and after In the category of appliances, your Company
sales support are some of the aspects which your launched several new models in water heaters
Company is looking at, in terms of the perfect with 5-star ratings, mixer grinders, air coolers and
store. other appliances by incorporating power-saving
technologies. With reduced travel and more
The year under review has witnessed a stay-at-home situations in the post-COVID world,
consolidation of efforts, the results of which will consumers look for easy-to-use and convenient
position your Company to drive strong growth in products. This will provide a huge thrust to
the coming years. Your Company will continue your Company’s innovative and ever-evolving
to surpass consumer expectations through its appliances products.
innovative products and structure the campaigns
to build greater awareness and recall of the brand. Seeing the huge potential in LED lighting
segment, your Company had launched
2. Portfolio Excellence
various new products like Star Lord Panels and
Your Company continues to offer differentiated Downlighters, Star Dura Panel Eye Smile Panel,
products to its customers through its value Star Glaze Pro Downlighter, LED Immensa (IoT
engineering. The consistent efforts in portfolio

Annual Report 2020-21 23

 lamp) and revamped its existing products. The The results have been encouraging and your
focus is to continuously innovate and produce Company plans to cover approximately 60% of
energy-efficient, smarter lighting products and to these towns soon.
build greater awareness for these products.
Your Company has doubled its retailers reach. It
3. Go-to-Market Excellence aims to reach new retail chains to ensure 100%
accounts coverage and continues to increase
Your Company has developed a Go-to-Market
store presence, improve product availability in
(GTM) strategy with an objective to reach target
new geographies through tie-ups with micro
customers and achieve a competitive advantage.
finance institutions, along with collaboration and
Despite, the disruptions caused by COVID, your
partnerships with new emerging channels.
Company posted strong annual growth which
was higher than the industry. Once industrial Your Company exports Fans, Pumps and
activities started to resume, your Company Appliances with a strong presence in the Fans
deployed a novel approach to drive sales. Your segment. Your Company plans to target new
Company focussed on data analytics and market territories and sell more varieties of products and
segmentation based on red (COVID hotspots), continue increasing its presence and adding more
amber (districts with limited COVID cases) and customers.
green (districts with zero COVID cases) markets
with a concerted focus on green and amber 4. Operational Excellence
markets to drive sales. This approach was an
Your Company’s unflinching focus on driving
industry first and the Crompton RAG model soon
operational excellence is one of the key enablers
became the benchmark in the industry.
of its business performance. Your Company
Employees were trained on tele-sales and digital is geared towards streamlining its processes,
channel assessment & appointment. There was optimising costs and accelerating the shift towards
increased digital engagement with channel digitalisation to drive greater efficiency.
partners and a higher focus on e-commerce and
rural channels. Quality
Your Company’s quest to drive operational
Your Company continues to leverage data
excellence was reflected in the new initiatives
analytics and technology. It utilises the Dealer
implemented during the year. These comprise
Portal – digital interface of Crompton for direct
5S, quality circles, daily work management, glass
channels to improve ease of doing business;
wall and structured problem-solving.
SAP for primary order management and the DMS
(Distributor Management System) to gather &
A Japanese concept of workplace management,
track secondary sales data. As a result, 80% of the
the 5S (sort, set in order, shine, standardise,
Company’s secondary sales can now be tracked.
sustain) methodology focusses on putting
It also has Konnect – mobile application for direct
everything where it belongs and keeping the
communication and engagement of retailers to
workplace clean. Your Company has initiated the
enable sales. It has launched a WhatsApp bot
first two steps of the 5S concept at its product
to enable 360 degree complaints registration
lines. This has helped to ease the movement of
process to significantly enhance customer and
people and material, thereby enhancing employee
consumer experience.
morale and productivity.
Going forward, your Company is working on
making the dealer portal platform a one-stop Under quality circles, shop floor interactions
solution for direct channel partners. It also intends are being emphasised for problem resolution.
to develop a go-to mobile approach with this In majority of cases, the issues are successfully
portal. solved by the frontline employees, as they are the
ones most familiar with the project and process.
Your Company has developed a rural ‘Son-of
the-Soil’ model and increased its foot strength for Daily work management focusses on the daily
10,000 – 1 lakh population centres. activities that need to be carried out for quality

24 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

maintenance. Process stability and process deployed a scorecard for strategic vendor and
capability form the core of this concept for always supplier, transporters, and CFA to monitor
delivering quality products. The initiative has been KPIs. It also uses a Vendor Performance Index
rolled out for quality function and manufacturing to monitor Vendor Performance across several
operations, with the aim to embed world-class KPIs. Your Company is working on reducing
practices in each of the 31 identified audit areas. dependency on China for supplies. A central
commodity team has been created to buy raw
Under the “glass wall” initiative, the key
materials and work components that can be used
performance indicators are transparently
across the product lines for the purpose of scale
displayed on dashboards in all plants and
and synergy. The transformation launched in the
functional departments. The metrics are rigorously
space of procurement three years ago is now fully
assessed and corrective action is taken to address
operational.
performance gaps.
Your Company implemented On-Time in Full
The structured problem-solving initiative is aimed
(OTIF) approach for distribution and leveraging
at solving complex problems through cross-
strategic partnerships for improving OTIF and
functional collaboration and competency building.
warehousing operations.
Using the seven basic tools of quality, the initiative
also enables continuous improvement.
Your Company would continue its focus on
Your Company recognises that the success of its digitisation of logistics, increased automation in
operational excellence initiatives will ultimately procurement, physical distributions and planning.
depend on the capabilities of its people. To grow
their competency, close to 4,761 manhours of Information Technology
training was conducted in last fiscal year for both Information Technology (IT) has been the
employees and vendors. mainstay and an enabler to the business. Your
Company’s digital roadmap is defined under its
Apart from these new initiatives, your Company
ongoing programme ‘Urja’. Under phase I and II,
continues to carry out its existing projects which
are yielding significant benefits; among them Urja has not only strengthened core business by
is Project Delight, aimed at creating a culture of leveraging better technology but has also helped
quality. As part of this project, your Company your Company to improve its partner relationships
has intensified its focus on minimising product and employee engagement by enhancing the
defects. Stringent quality performance audit at ease of doing business and gaining deeper market
both in-house and vendor units and improvement insights. Your Company’s digital transformation
in quality gates are being driven in line with this journey is now into its next phase with a focus
objective. We also initiated the vendor delight on the following themes: information safety;
project wherein teams work closely with vendor security checks and controls; leveraging data;
units to improve their performance. customer and consumer experience; knowledge
management; and process simplification. At a
Supply Chain time when cybersecurity risks have heightened
globally, your Company’s strengthened measures
Your Company continues to monitor its supply has enabled it to keep the data safe from security
chain with an aim to deliver the right product at threats. Your Company will continue to invest in
the right time. To tackle the COVID-19 setback building strong walls against any kind of cyber-
in the supply chain, your Company put in place
attacks.
a detailed plan to enable a “vertical start-up” as
the COVID-19 restrictions were being eased. Your Your Company has always embraced that
Company ensured all SOPs were followed to technology is not only an enabler but also a
ensure the safety of vendors and suppliers.
disruptor. In the last four years, your Company has
Your Company is committed to responsible sprinted to a state where it is almost at par with its
procurement practices. It has created an SOP peers; and with the slated digital transformations,
and checklist for new vendor on-boarding and it is on its way to gain a cutting edge in the industry.

Annual Report 2020-21 25

 Project Unnati The IT team played a pivotal role in providing
Your Company, through its ‘Cost Excellence adequate systems to employees so that they can
Programme’, continues to deliver noteworthy operate smoothly out of their homes. The sales
benefits which helped in delivering competitive team who primarily work by extensive field visits,
products across businesses. Cost savings of adapted to the new normal by staying connected
` 153 crore was achieved from various initiatives with business partners through regular telecalls
and providing necessary support remotely for
spanning across product design optimisation,
their businesses to run effectively. Your Company
in-house manufacturing, commercial negotiations
did not resort to any layoff or pay cut but ensured
etc.
timely payout of incentives. Further, your Company
advanced its salary payout by a week.
5. Organisational Excellence
The foundation of your Company’s leadership, At the same time, communication has been the
innovation and customer engagement is its cornerstone of managing the pandemic and has
people. Your Company nurtures its employees been used very systematically at Crompton. Your
by empowering them, providing an environment Company has institutionalised channels of two-
of highest safety and training for enhancing way communication through virtual meetings and
skills. Your Company’s focus has always townhalls and ensured that transparency remains
been on strengthening the talent pipeline by the foundation of organisational behaviour. Your
way of improving employee engagement, Company ensured regular communication with
career development and greater learning and the employees and union leaders through virtual
development opportunities. townhalls.

FY 2020-21 presented your Company with a Further, your Company believes in empowering
challenging landscape. However, the consistent its people through extraordinary learning
efforts and dedication of the employees have opportunities to build a future-ready workforce.
ensured uninterrupted business operations and Leaders were in constant touch with their teams
led to a commendable performance. through initiatives like “DIL SAY” free-wheeling
sessions, wherein employees can have direct and
Your Company accords great importance to safety
open discussions with their peers and managers.
and health of its employees Taking proactive
Surveys were sent out to employees to capture
measures, your Company was one of the first
data about the handling of the pandemic situation
companies to initiate ‘Work from Home’ for its
at all the locations and to understand what could
employees. Your Company ensured employees
be done better. The leadership team also agreed
were educated on health and self-discipline and
upon rituals to be followed within the teams to
adherence to all the safety guidelines issued by the
improve their engagement levels. They include
government. Your Company took some additional
the monthly “Thumbs Up” sessions, the objective
measures like partnering with health consultants,
of which is to reinforce positivity within the team.
top-up insurance and other increased insurance
benefits. The MyShield app was installed at all
Your Company has utilised artificial intelligence
plants which enabled contact tracing, tracking
driven tools like Amber and Hyphen to gauge
violation, and monitoring the physical presence of
the concerns of the employees and have
people entering the plant.
addressed them regularly through their respective
Your Company launched a dedicated learning HR business partners and functional heads. To
platform to help employees in developing measure the effectiveness of the communication
their capabilities. It initiated several employee channels, your Company has been continuously
engagement sessions and communicated obtaining feedback from its employees (both team
frequently through interactive sessions like and individual) through surveys and personal
‘Ask Your CEO’ etc. Your Company started a interactions.
special ‘Reward & Recognition’ programme for
the employees for demonstrating exemplary Your Company had conducted an employee
Crompton behaviours in difficult times. These engagement survey, organisation-wide, in
were recognised as ‘COVID-19 Heroes’. December 2019. The engagement level stood

26 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

at 63% back then. Detailed action plans were compliance to government guidelines on health
made by each business unit based on the themes and safety of its workforce.
of collaboration, decision-making, innovation
and learning & development. Your Company Commitment to ESG Your Company
conducted an employee engagement dipstick strongly believes that environmental pillar of
survey in February, 2021. The survey was sent out the sustainability drive is a crucial factor for
across all our units and received a response rate driving business growth. As a forward-looking
of 84%. The questions were focussed on the pillars organisation, your Company is working towards
“say, stay and strive”. The engagement scores various initiatives to reduce carbon footprint,
have seen a steep increase to 88% in February minimise emissions, achieve energy efficiency
2021. One of the focus areas has also been to and conserve natural resources. Further, your
build the skills and capabilities of the workforce. Company takes utmost care and undertakes
Towards this, your Company conducted meaningful initiatives to create positive impact in
extensive learning and development programmes and around its communities. Equal opportunity
including virtual monthly training calendars. Key employment, talent grooming, women employee
programmes included project management, tele- welfare programmes etc. are among its major
selling skills, analytics and reporting, Crompton interventions.
behaviours, leadership development, product
training, market research & consumer insights, ESG Committee
stress management, work-from-home skills, The Environment, Social and Governance (ESG)
career development & performance management, Committee of your Company is formed with the
B2B and key accounts management, field force objective of supporting its ongoing commitment
enablement, and others. Your Company has to environment, health and safety, social
launched a best-in-class learning platform named responsibility, governance, and sustainability
Degreed, which saw an encouraging response matters. The Committee assists the senior
and large consumption of self-learning modules leadership team in:
by employees.
• setting general strategy relating to ESG
Environment, Health & Safety (EHS) matters;
Your Company remains committed to health,
safety and environmental concerns while • developing, implementing, and monitoring
balancing a sustainable growth objective. It has initiatives and policies based on that strategy;
implemented ‘Kavach’ - a robust programme that
ensures strict adherence to safety standards and • overseeing communications with employees,
norms. It is aimed at minimising the adverse impact investors, and stakeholders with respect to
of manufacturing processes on the environment ESG matters;
along with ensuring health and safety of its
• monitoring and assessing developments
employees and other key stakeholders. During
relating to and improving the Company’s
the lockdown period, your Company accorded
understanding of ESG matters; and
paramount priority to employee health and
welfare. Key measures included temperature and
• efficient and timely disclosure of ESG matters
oxygen level checking, partition provision between
to internal and external stakeholders.
workstations, sanitisation of all touchpoints, social
distancing, tracking, tracing and isolation of
It is the responsibility of the Committee to
employees with symptoms, etc. Your Company
periodically review and assess the ESG charter
revisited employee health insurance coverage
and submit the recommended changes to the
for appropriate preventive screenings during the
Board for its consideration.
COVID-19 times. Your Company is ensuring strict

Annual Report 2020-21 27

Financial Performance

Standalone
Ratios 2020-21 2019-20
Debtors Turnover Ratio 10.09 8.81
Inventory Turnover Ratio (On Cost of goods sold) 6.58 7.51
Interest Coverage Ratio 18.19 16.12
Current Ratio 1.92 1.60
Debt Equity Ratio 0.25 0.24
Operating Profit Margin 16.43% 14.53%
Net Profit Margin 12.53% 10.82%
Return on Net Worth (RoNW)* 35.71% 38.55%
Note
*Return on Net Worth (RoNW) is a measure of profitability of a Company expressed in percentage. It is calculated by dividing profit for the
year by average capital employed during the year. Return on Net worth (RoNW) for 2020-21 was lower mainly on account of increase in
shareholders fund over the year due to profits accumulations.
Consolidated Financial Performance
Key highlights of financial performance are:
2020-21 2019-20
Particulars % to Revenue % to Revenue
Amt (` crore) Amt (` crore)
from Operations from Operations
Revenue from Operations 4,804 100% 4,520 100%
Material Costs 3,267 68.01% 3,070 67.92%
Employee Benefit Expenses 337 7.01% 311 6.88%
Finance Cost 43 0.90% 41 0.90%
Depreciation & Amortisation Expenses 30 0.62% 27 0.59%
Advertisement & Sales Promotion 82 1.71% 99 2.19%
Other Expenses 397 8.26% 441 9.76%
Total Expenses 4,156 86.51% 3,989 88.24%
Other Income 76 1.58% 59 1.31%
PBT 724 15.07% 591 13.07%
Tax Expense 107 2.23% 94 2.09%
PAT 617 12.84% 496 10.98%

• Revenues from Operations: strengthening alternate channels, customer reach

During the year ended 31 March, 2021, your
st expansion and technological enhancements, the
Company registered consolidated revenue from second half of 2020-21 witnessed 37% growth over
operations of ` 4,804 crore against ` 4,520 crore corresponding period 2019-20.
in the previous year 2019-20 delivering growth of
6.3% over last year. Due to the impact of COVID Revenue of Electrical Consumer Durables (ECD)
pandemic, the first half of 2020-21 witnessed segment constituting fans, pumps, and appliances,
20% decline in revenues over corresponding stood at ` 3,757 crore in 2020-21 delivering growth
period 2019-20. However, on account of strong of 11% over previous year. Lighting segment clocked
performance of Electrical Consumer Durables (ECD) consolidated revenue of ` 1,046 crore in 2020-21
segment through investment in growth initiatives like against ` 1,131 crore in the previous year 2019-20.

28 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

• Other Income: • PAT:

Other income for the year ended 31 March, 2021
st Consolidated profits during the year under review
stood at ` 76 crore. It primarily constitutes interest stood at ` 617 crore registering 24% growth over
income, investment income and other miscellaneous 2019-20 and indicating strong performance of your
income. Interest from customers, investments and Company.
tax refund are the main constituents of interest
• Capital Expenditure:
income.
Total capex excluding recognition of Right to
• Material Costs: use of assets is ` 32 crore. This mainly includes
Material Costs comprises consumption of raw power coating and liquid painting project, lighting
material, semi-finished goods, purchase of finished automation & assembly projects and moulds for
goods for re-sale and increase or decrease in the appliances.
stock of finished goods and work-in-progress. For
Debt Summary:
the year under review, material margin contracted
by 10 bps due to sharp surge in commodity costs Particulars 2020-21 2019-20
in second half of 2020-21. The sharp increase in
commodity cost was largely offset by the accelerated Gross Debt 480 Cr. 350 Cr.
cost saving initiatives, driving better mix and pricing
Net Debt (895 Cr.) (239 Cr.)
actions in the last quarter.
Total Equity 1,931 Cr. 1,468 Cr.
• Employee Costs:
During the year under review, employee cost stood Gross Debt to Equity 0.25 0.24
at ` 337 crore as compared to ` 311 crore in 2019- Net Debt to Equity (0.46) (0.16)
20. Increase was mainly on account of capability
building in research & development, rural business
Opportunities
and hiring of key strategic positions.
1. Government Schemes and Programmes: The
• Advertisement and Sales Promotion (A&P) Costs: government’s initiatives such as special funding of
A&P spends to sales ratio during the year was 1.7% stressed projects mainly in affordable and mid-income
as against 2.2% in 2019-20 as the activities in first projects, smart city and power will provide an impetus
half of last fiscal year were severely impacted by the in near future. The government’s renewed focus to
pandemic. A&P spends in the second half stood at drive solar power in agriculture sector under Kisan Urja
` 55 crore, an increase of 77% over corresponding Suraksha evam Utthan Mahabhiyan (KUSUM) scheme
period of 2019-20. is positive and opens new opportunity in solar pumps
business. The efforts under ‘Jal Jeevan Mission’ to
• EBIDTA Margins: ensure safe drinking water to every rural household will
With focussed drive on premiumisation, mix drive demand for pumps segment. Further, the thrust
improvement and successful implementation of on affordable housing will boost the long-term growth
‘Cost Control and Cash Conservation programme’, of the electricals consumer segment. PLI scheme
EBIDTA margins expanded by 200 bps versus incentive will stimulate manufacturing capability of
previous year and the same stood at 16.6% in white goods (ACs and LED lights).
2020-21.
2. Electrification & Thrust on Infrastructure: The
• Finance Cost: government’s focus on infrastructure development in
The finance cost which mainly comprises interest on country is expected to increase demand for electrical
Non-Convertible Debentures (NCDs) remained flat goods, particularly in products supplied to projects that
in the previous year 2020-21 at ` 43 crore. include streetlights. Continued focus of government to
improve electrification in rural areas through initiatives
• PBT: such as ‘Deendayal Upadhyaya Gram Jyoti Yojana
With PBT of ` 724 crore in 2020-21, PBT margins (DDUGJY)’ are creating new markets for electrical
improved by 200 bps over 2019-20 because of products.
successful implementation of Five-Dimensional
Growth Strategy.

Annual Report 2020-21 29

3. Increasing Income: Favourable demographic adversely impact the consumption demand and in turn
indicators like urbanisation, increase in disposable investment revival in the economy.
income of individuals, aspiration for good quality
products, growing number of nuclear families etc. are Outlook
expected to catalyse the growth for electrical goods in It has been a challenging year with several macro headwinds
the mid-to-long term horizon. encompassing several industries. Slow economic activity
and liquidity challenges impacted the overall demand
4. E-commerce Business: The COVID-19 pandemic
scenario in the industry. However, your Company’s cost-
has had a significant impact across various sectors.
saving measures, robust business continuity plan and
Consumer journeys are now intersecting more with the
strong brand proposition led to decent overall growth and a
online world. Social distancing norms have accelerated
healthy balance sheet.
shift to online buying across age and income segments
leading to increased sales through e-commerce Your Company will continue to invest in R&D with a clear
channels. These channels will also improve customer focus on adding innovative value-added products. Your
reach. Company will continue to leverage technology across the
5. Digitisation and Technology: Introduction of new tech organisation with the objective of simplifying processes,
driven products will improve core customer experience. inducing analytical decision-making to identify emerging
Rapid adoption of Smart and IoT-connected solutions trends and creating maximum value for all stakeholders.
shall be an enabler to drive business growth. Millennials Health and safety of employees will remain a prime focus.
who are more inclined towards technology will drive Your Company will continue to strengthen its efforts in
growth in this sector. distribution and build a rurban sales organisation. It is
also looking at new technologies such as smart IoT,
Threats energy-efficient technologies in its product lines along with
1. Economic slowdown: Sluggish growth in the Indian sanitisation and purification applications.
economy due to the current global developments could
Your Company aims to grow the fans and pumps segment,
negatively impact growth in the short term. Demand for
strengthen the lighting division, and continue to propel the
new housing has been subdued since the past couple
growth in appliances led by water heaters, mixer grinders
of years which could impact demand for electrical
goods. Availability of quality electricity is the key for and coolers. Your Company also envisages opportunities
demand of electrical products and any substantial in agricultural pumps. It continues to evaluate organic
shortfall in the supply of electricity may hamper growth opportunities, which will accelerate the realisation of the
prospects for the industry. business strategy and leverage and use the cash that sits
on its balance sheet.
2. Impact of second wave of COVID-19: Operational
The second wave of COVID-19 that is impacting the nation
efficiency will be put to test as the second wave of
along with the increasing commodity prices is expected
COVID-19 will affect availability of right resources at
to pose challenges for your Company. However, your
right place and time. Deterioration in supply chain
Company’s adequate liquidity position, surplus cash and
and demand slowdown have emerged as a significant
operational efficiencies will enable it to protect its profitability
business risk. The outbreak of COVID-19 and its
and meet all statutory requirements and obligations.
subsequent effect on the economy has hampered
consumer spending, leading to a resurged uncertainty Risk Management and Mitigation
in the market.
A robust internal financial control system forms the backbone
for your Company’s risk management and governance.
Commodity Headwinds: As the Indian economy started its
Your Company has established comprehensive framework
unlocking phase, it saw a pent-up demand for commodities,
for the identification and mitigation of risks. A structured
driving prices up further. However, this price increase has
risk management system permits the management to take
spooked fears of inflation in the domestic markets along
calibrated risks, which provides a holistic view of the business
with worries over increasing raw material cost for many
wherein risks are identified in a structured manner from top-
sectors. Prices of industrial commodities, including copper,
down to bottom-up approach. Your Company faces three
steel and aluminium have seen a sharp surge and a further
primary risks – business risk, operational risk and external
rise is likely to affect growth prospects for the economy in
risk and monitors them regularly according to industry best
FY22. Increasing input costs, higher commodity prices and
practices. Your Company strives continuously to attain
better pricing power remains key risks to inflation and will

30 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

cost leadership, focusses expanding and strengthening Your Company has periodically evaluated and assessed its
distribution network to consistently delight customers with ‘Business Continuity Plan (BCP)’ to factor in the regulations
meaningful innovative solutions which has enabled it to and initial learnings. The plan would remain focussed on 3Ps
achieve a competitive edge in the industry. The twin purpose (Prevent, Prepare and Proactive) to help business navigate
of enterprise risk management is to minimise adverse the financial and operational challenges due to impact of
impacts and to leverage market opportunities effectively. second wave of COVID-19, while rapidly addressing the
The objective is to sustain and enhance short-term and needs of the employee, customers, and suppliers.
long-term competitive advantage for your Company.
Cautionary Statement
Business Continuity Plan This document contains statements about expected future
Last year, your Company had successfully implemented events, financial and operating results of your Company,
‘Business Continuity Plan’ (BCP) wherein all critical which are forward-looking. By their nature, forward-looking
business activities were tested for their smooth functioning. statements require the Company to make assumptions
With minimal cost upcharge, business operations and are subject to inherent risks and uncertainties. There is
were ramped up by strictly adhering to guidelines and significant risk that the assumptions, predictions, and other
government regulations. Given the importance of cash flow, forward-looking statements will not prove to be accurate.
Readers are cautioned not to place undue reliance on
your Company had launched a ‘Cost Control and Cash
forward-looking statements as several factors could cause
Conservation Programme’, a dedicated programme to
assumptions, actual future results, and events to differ
reduce discretionary costs, optimise spends and conserve
materially from those expressed in the forward-looking
cash to tackle the uncertainty on account of COVID-19.
statements. Accordingly, this document is subject to the
These measures have enabled your Company to obtain a
disclaimer and qualified in its entirety by the assumptions,
strong financial position.
qualifications and risk factors referred to in the management’s
discussion and analysis of Crompton Greaves Consumer
Limited’s Annual Report, 2020-21.

Annual Report 2020-21 31

Board Report

Dear Members, INCREASE IN SHARE CAPITAL - EXERCISE OF

STOCK OPTIONS
Your Directors are pleased to present the Seventh During the year under review, your Company has made
Annual Report on the business and operations of the following allotments pursuant to the exercise of options
Company and the accounts for the Financial Year ended
by eligible employees under the various ESOP schemes:
31st March, 2021.

FINANCIALS A. Crompton Employee Stock Option Scheme - 2016

The table below depicts the standalone financial (ESOP 2016):
performance of your Company for the year ended Date of Allotment No. of Shares
31st March, 2021.
16 September, 2020
th
49,963
09 November, 2020
th
28,125
(` crore)
16 December, 2020
th
26,866
Particulars Year ended Year ended
31st March, 31st March, 04 January, 2021
th
21,070
2021 2020 18 January, 2021
th
27,000
Revenue from operations 4,749.95 4,511.97 17 February, 2021
th
48,000
Total income 4,825.58 4,570.84 18 March, 2021
th
25,000
Profit before Tax 707.72 588.27 23 March, 2021
rd
49,000

Tax expense 102.98 93.57 Total 2,75,024

(including deferred Tax)
B. Crompton Performance Share Plan - 1 - 2016
Profit after Tax 604.74 494.70
(PSP 1 2016):
OVERVIEW OF COMPANY’S FINANCIAL
PERFORMANCE Date of Allotment No. of Shares
During the year ended 31 March, 2021, your Company
st
29th January, 2021 1,00,000
registered revenue from operations of ` 4,750 crore
against ` 4,512 crore in the previous year 2019-20 Total 1,00,000
delivering growth of 5.3% over last year.
C. Crompton Employee Stock Option Scheme - 2019
Tax expense was lower due to effect of the tax refund (ESOP 2019):
granted for the year 2017-18 and 2018-19.

INCREASE IN AUTHORISED SHARE CAPITAL Date of Allotment No. of Shares

During the year under review pursuant to the ordinary 18th March, 2021 32,357
resolution passed by the shareholders of the Company
Total 32,357
through postal ballot dated 6th January, 2021, the
Authorised Share Capital of the Company was increased
from ` 130,00,00,000 (Rupees One Hundred Thirty Crore Accordingly, the total paid-up share capital of the
only) divided into 65,00,00,000 equity shares of ` 2/- Company as on 31st March, 2021 is ` 125,53,82,706/-
each (Rupees Two only) to ` 131,00,00,000 (Rupees One (Rupees One Hundred Twenty Five Crore Fifty Three Lakh
Hundred Thirty One Crore only) divided into 65,50,00,000 Eighty Two Thousand Seven Hundred Six only) divided
equity shares of ` 2/- (Rupees Two only). into 62,76,91,353 equity shares of ` 2/- each.

32 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

DIVIDEND Segment of National Stock Exchange of India Ltd. The

Your Directors are pleased to recommend a Final Dividend proceeds of Non-Convertible Debentures were used to
of ` 2.50/- per equity share of the face value of ` 2/- each infuse additional funds to retain adequate liquidity to
for the year ended 31st March, 2021. The Interim Dividend support business continuity and growth during COVID-19.
of ` 3/- per equity share was paid on 13th November, 2020.
Your Company has redeemed Non-Convertible
The Final Dividend, subject to the approval of Members Debentures (NCDs), Series B, issued in June 2016,
at the Annual General Meeting on 23rd July, 2021 will be amounting to ` 170 crore on 24th June, 2020.
paid on or after 26th July, 2021 but within a period of 30
days from the date of AGM to the Members whose names Presently, total NCDs aggregating to ` 480 crore are
appear in the Register of Members, as on the Record date listed on the National Stock Exchange of India Ltd. Out of
i.e. 9th July, 2021. The total dividend for the financial year, these NCDs, Series C, issued in June 2016, amounting
including the proposed Final Dividend, amounts to ` 5.50 to ` 180 crore is due for redemption on 24th June, 2021.
per equity share. In view of the changes made under the
Income-tax Act, 1961, by the Finance Act, 2020, dividends IDBI Trusteeship Services Limited is the Debenture
paid or distributed by the Company shall be taxable in Trustee for the Debenture holders. The details of the
the hands of the Shareholders. Your Company shall, NCDs and the Debenture Trustee are provided in the
accordingly, make the payment of the Final Dividend after Corporate Governance Section which forms a part of the
deduction of tax at source. Annual Report.

Further, pursuant to the applicable provisions of the CREATION OF DEBENTURE REDEMPTION

Companies Act, 2013, read with the IEPF Authority RESERVE
(Accounting, Audit, Transfer and Refund) Rules, 2016 Your Company has maintained Debenture Redemption
(“the IEPF Rules”), all unpaid or unclaimed dividends are Reserve (DRR) at ` 75 crore created in financial year
required to be transferred by the Company to the IEPF 2018-19 pursuant to the provisions of Section 71 of the
established by the Government of India, after completion Companies Act, 2013 read with Rule 18 of the Companies
of seven years. Further, according to the IEPF Rules, the (Share Capital and Debentures) Rules, 2014. The DRR
shares on which dividend has not been paid or claimed
maintained is adequate for the NCDs redemption due for
by the shareholders for seven consecutive years or more
redemption on 24th June, 2021.
shall also be transferred to the demat account of the IEPF
Authority.
As required under SEBI Circular SEBI/HO/MIRSD/
CRADT/CIR/P/2020/207 dated 22nd October, 2020, your
However, since seven years have not elapsed from
Company has created Recovery Expense Fund in respect
the date of declaration and payment of dividend since
incorporation, transfer of unpaid dividend and the of outstanding debentures.
shares on which dividend has not been paid or claimed
to Investor Education and Protection Fund (IEPF) is not RESERVES
applicable to the Company. Your Company does not propose to transfer any amount
to the General Reserve.
In terms of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, CREDIT RATING
2015 (“Listing Regulations”), the Company has adopted a CRISIL has reaffirmed your Company’s long-term rating
Dividend Distribution Policy and the same is available on to AA+/Stable. The short-term rating at A1+ remains the
the Company’s website at https://www.crompton.co.in/ highest.
media/Dividend-Distribution-Policy.pdf.
EMPLOYEE STOCK OPTION PLAN
NON-CONVERTIBLE DEBENTURES During the year under review, the Members of the
During the year under review, your Company issued Company, vide special resolution passed through postal
rated, secured, listed, redeemable, Non-Convertible ballot on 6th January, 2021, approved the amendment in
Debentures (NCDs) aggregating to ` 300 crore on a the ESOP 2019 and increased the option pool to further
private placement basis. These NCDs are listed on Debt create, issue, offer and grant additional 50,00,000 (Fifty
Lakh) stock options.

Annual Report 2020-21 33

The number of stock options available under ESOP 1. Safe Work Environment: Once operations restarted in
2019 are 98,00,000 (Ninety Eight Lakh) exercisable into factories after lockdown, the priority was to provide a safe
98,00,000 (Ninety Eight Lakh) equity shares. work environment so that employees could work without
any fear of their safety & well-being. Your Company
The ESOP Schemes are in compliance with the SEBI started with providing for social distancing at assembly
(Share Based Employee Benefits) Regulations, 2014 (‘the lines and canteen. Workstations were provided with
SBEB Regulations’). glass partitions to avoid direct contact. All the common
touch points were studied and provided with alternatives
The applicable disclosures as stipulated under SEBI (Eg. Inhouse developed foot operated water coolers,
(Share Based Employee Benefits) Regulations, 2014 are Foot operated doors, No touch soap dispensers, etc.).
provided in Annexure 1 to this Report.
2. Awareness Sessions: Considering that there was
HUMAN RESOURCES & EMPLOYEE RELATIONS general panic and fear among the employees, your
Company made it a point to have constant dialogue
Employee Performance & Engagement and awareness sessions on COVID-19 and steps taken
Employee engagement is tracked on a real-time by the organisation. The shop-floor employees actively
basis in Crompton. Your Company had conducted an participated in driving this message to all employees
organisation-wide “Employee Engagement Survey” by regularly. In factories, the supervisors organised small
partnering with Kincentric in December 2019. The results group interactions continuously to drive the message
of the Survey were shared by the Executive Director & of safe social distancing, usage of masks and need for
CEO in the townhall with all employees, wherein the self-isolation in case of any COVID symptoms.
overall engagement level as analysed by Kincentric was
“63%”. Over the next few months, several interventions 3. Adoption of Technology to ensure social distancing
have been identified both at the Organisation level and norms: To drive the new behaviours of maintaining
Business Unit/Function level to enhance the employee the necessary distance in social interactions and to
engagement levels in the organisation. effectively track close contacts in case of any infections,
significant investments were made in implementing
To assess the progress that was made in improving
“MyShield” application through which tags with
the engagement levels, an Employee Engagement
MyShield instrument were provided to all employees
dipstick survey for most of the Business Units was
which gives an audio signal if any employee comes
conducted through Hyphen. The questions to measure
in close contact with another person. It also enables
the Engagement levels were the same as administered
by Kincentric which were focused around the pillars “Say, contact tracing as and when required.
Stay and Strive”. The employee engagement scores have
4. Transportation facility for some factory employees:
seen a steep increase from 63% in December 2019 to 88%
in February 2021. The leadership continues to act on the Prior to COVID, your Company was providing
feedback given by the employees in various forums. The transportation facilities to factory employees which
strong employee engagement initiatives are continued required the employees to assemble at specific
through multi-layer communication, engagement, and locations. To avoid any risk of travelling on public
recognition programmes. transport, your Company has provided bus service to
those factories employees by picking them up from
Employee Welfare and Policies their place of stay. Also, to avoid close contact, the
number of employees in each bus was limited to half
Your Company has always been conscious to promote all-
the capacity.
round employee welfare. Environment, Health and Safety
(EHS) guidelines are deployed to promote workplace
5. Support to the local community: Your Company’s
health and safety and create a healthy environment.
factories are in industrial estates with a large population
Regularly, the policies are benchmarked with market
of migrant labourers. During the initial days of lockdown,
standards and are upgraded as and when necessary.
with limited availability of ration and transportation, it
Some of the practices, programmes, policies, and welfare was difficult for them to procure daily supplies. Your
measures that were put in place to demonstrate care and Company tied up with the local NGOs in supplying
empathy towards employees during COVID are listed the daily essentials and the employees volunteered to
below: ensure effective distribution of these.

34 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

6. Capability Building & Employee Wellness related employees for demonstrating exemplary Crompton
programmes: Your Company took the opportunity behaviours in difficult times. They were recognised as
of lockdown to upskill its employees with a range of “COVID-19 Heroes”.
online programmes being made available to them.
Learning management system, “Degreed” with content 11. Adopting to new normal: Once the lockdown
curated on topics ranging from functional skills to was eased, your Company was amongst the first
employee wellness including programmes like online organisations to re-start factories at all locations
yoga and meditation sessions was launched. Online with all the necessary precautions. However, clear
programmes such as How to Keep Yourself Fit, Do’s communication was given to employees to continue
& Don’ts during the Pandemic, Mindfulness, special working from home if their role did not require them
talks by the doctors under “Ask the Doctor” series, to come to the office. The same was mandated to
yoga, Work-life balance, how to be productive during those employees whose age put them at higher risk
“Work from Home” are continuously conducted. Your of infection. The sales teams who primarily work by
Company has also arranged an online medical facility extensive field visits adapted to the new normal by
for all the employees and their families through the staying connected with business partners through
DocOnline, one of the renowned companies in this regular telecalls and providing necessary support
field so that employees can get their health concerns remotely for their businesses to run effectively.
addressed virtually.
Building Talent
7. Employee & Family Connect: Your Company always Your Company continues to be committed to developing
believes that success of employees is in major part internal leaders and a talent pipeline. The same was further
dependent on the support system provided by the strengthened through the launch of structured long-term
family members at home and made it a point to engage Leadership development programmes in partnership with
family members in events through online talent shows, the Indian Institute of Management at various levels. The
singing competitions and special curated content on process of identifying internal successors for key positions
“Degreed” targeting the children of employees. and systematic development of leadership continued.

8. Support for employees affected by COVID: The talent assessment process of the organisation for
Understanding the monetary and emotional drain on recruitment and internal talents also continued to be
employees because of COVID-19, your Company took strengthened through the implementation of various data­
additional COVID-19 insurance for employees and their driven tools including TalView, Knack, Hogan, Korn Ferry,
family members on top of regular medical insurance etc.
which was in place before COVID-19. Also, for any
employee who was affected by COVID-19, 17 days of Employee and Leadership Development
paid leave in addition to their regular leave eligibility was
In line with your Company’s long-term business strategy,
provided. The Company also reimbursed expenses
there are robust employee development programmes
incurred for COVID-19 tests for those employees
through structured interventions and on-the-job and
who went for testing in private labs. The COVID-19
experiential learning through career movements, special
Insurance Coverage Scheme Options at special rates
assignments and projects. It is intended to build best-in­
was extended to our Dealers & Distributors at lesser
class capability in the area of Go-to-Market, Operational
than market price.
Excellence and Quality, Brand and Portfolio Management
and Innovation.
9. Revising the monthly compensation cycle: In March
2020, when the lockdown was imposed, your Company
Your Company used the opportunity to develop Personal
took a call to pay salaries and incentives to employees
Leadership. During the crisis, following unique initiatives
in advance, so that they need not be worried on the
were launched.
financial front due to the sudden onset of lockdown.
The same support has been extended to suppliers to
1. Service Excellence Certification Program - Your
keep the system running.
Company piloted the programme which aimed at
improving the coaching skills of First Time Managers-
10. COVID Heroes: Your Company also started a
Area Sales Managers (ASMs). The participants were
special “Rewards & Recognition” programme for the
trained on how to coach their employees. While COVID

Annual Report 2020-21 35

 could delay the Sales, there was no way to delay the Digitalising HR Practices
service. It had to be provided whenever a customer The journey to digitise all aspects of an employee’s life
raised any complaint. This programme helped Service cycle continued with further deployment of technology­
ASMs to coach Territory Managers (TMs) for resolving enabled tools and processes.
customer complaints with the same sense of urgency.
Seeing the success of this initiative, your Company is DIRECTORATE & KEY MANAGERIAL PERSONNEL
now all set to deepen this intervention further. The appointment and remuneration of Directors are
governed by the Policy devised by the Nomination and
2. Design Thinking - Your Company had embarked on
Remuneration Committee of your Company. The detailed
this journey last year mainly for Product Managers and
Nomination and Remuneration Policy is contained in the
Innovation Team. However, COVID threw some unique
Corporate Governance Section of the Annual Report.
challenges for Sales Team such as how to sustain
revenues and address high-stress levels amongst Your Company’s Board comprises ten members as on the
employees. That is where your Company decided to date of this Report. The Chairman, Mr. H. M. Nerurkar is an
pilot design thinking even for Sales Team so that they Independent Director.
could address these challenges keeping the customer
in the centre. Mr. Shantanu Khosla is the Managing Director. Mr. Mathew
Job is the Executive Director & Chief Executive Officer.
3. Taking Ownership for One’s Development - Career Mr. D. Sundaram, Mr. P. M. Murty, Ms. Smita Anand
development workshops were conducted to sensitise and Mr. P. R. Ramesh are other Independent Directors.
employees on the importance of life-long learning and Ms. Shweta Jalan, Mr. Sahil Dalal and Mr. Promeet Ghosh
how they need to take charge of their own development. are Non-Executive Non-­Independent Directors.
The employees also realized that they continuously
need to up-skill/re-skill themselves if they need to stay Mr. Mathew Job was appointed as an Additional Director
relevant. 50+ pathways on Degreed were curated and designated as the Executive Director & Chief Executive
employees were nudged to refine their skills through Officer by the Board of Directors on 22nd January, 2021
self-learning. This was a significant leap for your and Members of the Company vide special resolution
Company as traditionally only classroom training was passed through postal ballot on 2nd May, 2021 approved
done. Hence, there was huge consumption of self- the appointment w.e.f. 22nd January, 2021 for a period of
learning modules on Degreed. 5 years.

4. Crompton Leadership Program - With physical Mr. P. R. Ramesh (DIN: 01915274) was appointed as
sessions no longer possible, the last phase of ongoing Additional Independent Director of the Company by
programme with IIM Lucknow for high-potential the Board on the recommendation of Nomination and
employees was completed remotely. This revealed an Remuneration Committee w.e.f. 21st May, 2021. Members’
important opportunity that was not leveraged earlier. approval is sought for his appointment as an Independent
People became used to virtual learning. This helped Director for a period of five years with effect from 21st May,
to incorporate coaching as an essential component 2021.
of training design. With people spread over multiple
locations, virtual coaching is far more practical to The Company has received a declaration from each of
implement. Also, based on the success of this initiative, its Independent Directors confirming that they satisfy
your Company was able to widen coverage in MDP the criteria of independence as prescribed under the
programmes while managing the costs. provisions of the Companies Act, 2013 and the SEBI
Listing Regulations. Also, all the Independent Directors
Employee Relations & Compliance are registered on the on-line database of Independent
Directors created by the Indian Institute of Corporate
Your Company continued to enjoy a very good relationship
Affairs, Manesar (“IICA”).
with the labour unions at the respective factories. The
overall compliance framework was further strengthened During financial year 2020-21, Mr. P. M. Murty and Mr.
by an in-depth assessment of all compliance-related risks D. Sundaram were re-appointed for second term as
and taking suitable actions. Independent Directors w.e.f. 18th September, 2020. Mr. H.
M. Nerurkar was re-appointed as Independent Director for
second term w.e.f. 25th January, 2021. The Company did

36 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

not appoint any new Independent Director on the Board BOARD EVALUATION
of Directors during financial year 2020-21. Hence, the In terms of requirements of the Companies Act, 2013
opinion of the Board concerning integrity, expertise read with the Rules issued thereunder and SEBI (Listing
and experience (including the proficiency) of Independent Obligations and Disclosure Requirements) 2015, the Board
Directors is not required to be given. carried out the annual performance evaluation of the Board
of Directors as a whole, Committees of the Board and
Mr. Shantanu Khosla was re-appointed as the Managing
individual Directors.
Director of the Company for next term of 5 years w.e.f.
1st January, 2021. The Board Evaluation cycle was completed by your
Company internally led by the Independent Chairman of the
Mr. Shantanu Khosla, Managing Director & Ms. Shweta
Company along with the Chairman of the Nomination and
Jalan, Non-Executive Director are liable to retire by rotation.
Remuneration Committee (“NRC”).
Mr. Shantanu Khosla being eligible for re-appointment at
the ensuing AGM of your Company has offered himself The parameters for performance evaluation of the Board
for re-appointment. His details as required under the include the composition of the Board, process of appointment
SEBI (Listing Obligations and Disclosure Requirements) to the Board of Directors, common understanding of
Regulations, 2015 are contained in the accompanying the roles and responsibilities of the Board members,
Notice convening the ensuing AGM of your Company. timelines for circulating Board papers, content and quality
Ms. Shweta Jalan has indicated that she is not desirous of the information provided to the Board, attention to the
of seeking re-appointment at the ensuing Annual General Company’s long-term strategic issues, evaluating strategic
Meeting of the Company. Appropriate resolutions are risks, overseeing and guiding acquisitions etc.
included in the Notice of the ensuing Annual General
Some of the performance indicators for the Committees
Meeting.
include understanding the terms of reference, the
Mr. Shantanu Khosla, Managing Director, Mr. Mathew effectiveness of discussions at the Committee meetings,
Job, Executive Director & Chief Executive Officer, the information provided to the Committee to discharge
Mr. Sandeep Batra, Chief Financial Officer and Ms. Pragya its duties and performance of the Committee vis-à-vis its
Kaul, Company Secretary are Key Managerial Personnel of responsibilities.
the Company in accordance with the provisions of Section
Performance of individual Directors was evaluated based
2(51) and Section 203 of the Companies Act, 2013 read on parameters such as attendance at the meeting(s),
with the Companies (Appointment & Remuneration of contribution to Board deliberations, engagement with
Managerial Personnel) Rules, 2014, including any statutory colleagues on the Board, ability to guide the Company in key
modification(s) or re-enactment(s) thereof for the time matters, knowledge, and understanding of relevant areas,
being in force. and responsibility towards stakeholders. All the Directors
Your Board of Directors met eleven (11) times during the were subject to self-evaluation and peer evaluation.
financial year 2020-21. The details of the meetings and the The performance of the Independent Directors was
attendance of the Directors are mentioned in the Corporate evaluated taking into account the above factors as well as
Governance Report. independent decision-making and non-conflict of interest.
The Board has established Committees as a matter of good Further, the evaluation process was based on the affirmation
corporate governance practice and as per the requirements received from the Independent Directors that they met the
of the Companies Act, 2013 and SEBI (Listing Obligations independence criteria as required under the Companies
and Disclosure Requirements) Regulations, 2015. The Act, 2013 and Listing Regulations, 2015.
Committees are Audit Committee, Nomination and
Remuneration Committee, Corporate Social Responsibility The Board Evaluation discussion was focussed on how to
Committee, Stakeholders’ Relationship & Share Transfer make the Board more effective as a collective body in the
Committee, Risk Management Committee, Allotment context of the business and the external environment in
Committee for allotment of shares arising out of Stock which the Company functions. From time to time during the
Options, Strategic Investment Committee, Committee year, the Board was apprised of relevant business issues
for Debentures and ESG Committee. The composition, and related opportunities and risks. The Board discussed
terms of reference, number of meetings held and business various aspects of its functioning and that of its Committees
such as structure, composition, meetings, functions and
transacted by the Committees are given in the Corporate
interaction with management and what needs to be done to
Governance Report.
further augment the effectiveness of the Board’s functioning.

Annual Report 2020-21 37

Additionally, during the evaluation discussion, the Board 1. Pinnacles Lighting Project Private Limited (CIN:
also focussed on the contribution being made by the Board U74999MH2018PTC318891) was incorporated on
as a whole, through its Committees and discussions on a 31st December, 2018 to execute, design, manufacture,
one-on-one basis with the Chairman. test, supply, O&M of LED Street Lights &
Poles and other related works for the implementation of
The overall assessment of the Board was that it was Greenfield Street Lighting Project for 19 Urban Local
functioning as a cohesive body including the Committees of Bodies (ULBs) in Odisha. This contract received from
the Board. They were functioning well with periodic reporting Government of Odisha, Housing & Urban Development
by the Committees to the Board on the work done and Department is on Public-Private Partnership (PPP)
progress made during the reporting period. The Board also basis.
noted that the actions identified in the past questionnaire­
based evaluations had been acted upon. Total Revenue booked for the Financial Year ended
31st March, 2021 was ` 42.82 crore (including ` 0.21
During 2020-21, the Company actioned the feedback from crore as other income). Profit after Tax was ` 6.38 crore
the Board evaluation process conducted in 2019-20. as compared to a profit of ` 1.01 crore in the previous
year.
The Board noted the key improvement areas emerging from
this exercise in 2020-21 and action plans to address these 2. Nexustar Lighting Project Private Limited (CIN:
are in progress. These include strengthening the succession U74999MH2019PTC318955) was incorporated on
planning for key positions, business strategy and annual 2nd January, 2019 to execute, design, manufacture, test,
plan etc. supply, O&M of LED Street Lights & Poles and other
related works for the implementation of Greenfield
FAMILIARISATION PROGRAMME Street Lighting Project for 36 Urban Local Bodies (ULBs)
Your Company has in place a structured induction in Odisha. This contract received from the Government
and familiarisation programme for its Directors. Upon of Odisha, Housing & Urban Development Department
appointment, Directors receive a Letter of Appointment is on Public-Private Partnership (PPP) basis.
setting out in detail, the terms of appointment, duties,
Total Revenue for the Financial Year ended 31st March,
responsibilities, obligations, Code of Conduct for
2021 ended was ` 38.24 crore (including ` 0.19 crore
Prevention of Insider Trading and Code of Conduct
as other income) and Profit After Tax was ` 5.54 crore
applicable to Directors and Senior Management Personnel.
as compared to a profit of ` 0.09 crore in the previous
They are also updated on all business-related issues and
year.
new initiatives.

Regular presentations and updates on relevant statutory 3.

Crompton CSR Foundation (CIN:
U85300MH2019NPL324784) (CSR Unique
changes encompassing important laws are made and
Identification No: CSR00001086) was incorporated
circulated to the Directors.
under Section 8 of the Companies Act, 2013 (being
The Directors appointed as members on the Corporate a Company limited by guarantee not having share
Social Responsibility Committee (“CSR”) are also involved capital) on 1st May, 2019 primarily with an objective
and briefed about CSR initiatives of the Company. Senior of undertaking/channelising the CSR activities of the
Executives of the Company make presentations to the Company. Crompton CSR Foundation is registered
members of the Board on the performance of the Company under Section 80G and Section 12A of the Income Tax
and strategic initiatives. Act, 1961. Based on the Control assessment carried
out by the Company, the same is not consolidated as
Brief details of the familiarisation programme are uploaded per lnd AS 110.
and can be accessed on the Company’s website at
https://www.crompton.co.in/wp-content/uploads/2019/07/ Pursuant to the provisions of Section 129(3) of the
Familiarization-Programme-for-FY-20-21.pdf. Companies Act, 2013, a statement containing salient
features of financial statements of subsidiaries in Form AOC-
SUBSIDIARY COMPANIES, ASSOCIATES & 1 is attached herewith as Annexure 2. The separate audited
JOINT VENTURES financial statements in respect of each of the subsidiary
Your Company has three wholly-owned subsidiaries which companies are open for inspection and are also available
are as follows: on the website of your Company at https://www.crompton.
co.in/investors/accounts-of-subsidiary-companies/.

38 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Pursuant to the requirements of Regulation 34 (3) read with to the Notes to the financial statements which sets out the
Schedule V of the SEBI (Listing Obligations and Disclosure disclosure for related-party transactions.
Requirements), Regulations, 2015, the details of Loans/
Advances made to and investments made in the subsidiary PARTICULARS OF LOANS, GUARANTEES OR
have been furnished in Notes forming part of the Accounts. INVESTMENTS
There were no Loans and Guarantees made by the
Further, the Company does not have any joint venture or Company under Section 186 of the Companies Act, 2013.
associate companies during the year or at any time after the The details of investments made by the Company under
closure of the year and till the date of the report. Section 186 of the Companies Act, 2013 form part of this
Annual Report and are given in the Notes to the standalone
CONSOLIDATED FINANCIAL STATEMENTS financial statements for the financial year ended 31st March,
The consolidated financial statements have been prepared 2021.
in compliance with Indian Accounting Standards (the ‘Ind
AS’) notified under Section 133 of the Companies Act, ENTERPRISE RISK MANAGEMENT
2013 (the ‘Act’) read with Rule 3 of the Companies (Indian Your Company has established a robust risk management
Accounting Standards) Rules, 2015, as amended and framework and process to ensure the achievement
other relevant provisions of the Act. of its strategic objectives and sustainable goals. The
process enables informed decision-making, through
RELATED-PARTY TRANSACTIONS risk assessment and management at various levels.
In accordance with the requirements of the Companies Both Bottom-up and Top-down approaches are adopted
Act, 2013 and Listing Regulations, 2015, your Company covering the Organisation, Business units and Functions.
has a Policy on Related-Party Transactions which can be
accessed through weblink - https://www.crompton.co.in/ The Board of Directors oversee your Company’s Risk
media/Policy-on-RPT-CGCEL.pdf. Management framework and process through Risk
Management Committee. Audit Committee also has
All related-party transactions are placed before the Audit additional oversight on Financial Risks and Controls. Your
Committee for review and approval. Prior omnibus approval Company’s Internal Management Audit team assures the
of the Audit Committee and the Board is obtained for the Board of Directors of the effectiveness of the process. Risk
transactions which are of a foreseen and repetitive nature. Council comprising the Senior Leadership team of your
A statement giving details of all related-party transactions Company has been formulated, that reviews the major
is placed before the Audit Committee for their noting/ risks identified by the business and the status of mitigation
approval every quarter. actions, to systematically address the risks, on an ongoing
basis.
There were no materially significant transactions with
related parties (i.e. transactions exceeding 10% of the Your Company has a comprehensive fraud prevention
annual consolidated turnover) during the year as per the last mechanism, to deter and detect fraud across the Company.
audited financial statements. Accordingly, the disclosure Effective training modules have been created and
of transactions entered into with related parties pursuant institutionalized to ensure that every Employee is aware of
to the provisions of Section 188(1) of the Companies Act, their Whistleblowing rights, to report any action which is
2013 and Rule 8(2) of the Companies (Accounts), Rules non-compliant with the Company’s laid down Policies and
2014 in Form AOC-2 is not applicable. Code of Conduct. Any reporting is duly investigated and
duly reported to the Board of Directors, and actioned as
All related-party transactions are mentioned in the notes to
the accounts. The Directors draw attention of the members applicable.

Annual Report 2020-21 39

Key Risks identified by the Management and the status of actions taken are summarised below:

External Risks
RISK ACTION PLAN

Fragile macroeconomic conditions and factors (like • Robust short, medium, long term planning process including
government policies, impact of global/national events, a 5-year strategic plan with clear objectives, related risks and
lower consumer spending etc.) could have an indirect defined mitigation plan.
impact on the consumer behaviour which in turn affect
demand • Annual operating plan with defined KPIs and monitoring.

• Monthly planning process.

• Comprehensive cost reduction plan (Unnati).

All the above enable a very agile response to changing situations.

Entry of global players with deep pockets in the Indian • Product initiatives of competition closely tracked and
market (E.g. slowing of other economies could lead reviewed during monthly meetings with Business Heads.
to possibility of dumping of products, favourable FDI
regulations) • Entry of new players in the market is monitored through
periodic field reports and market expert reports.

Strategic Risks
RISK ACTION PLAN

Ability to out-innovate competition • Competency built in businesses and central Research &
Development (R&D) to support industrial validation and
• Inability to have first-mover advantage due to
project management.
poor speed of execution of the pipeline
• R&D process being strengthened with robust New Product
• Technological changes and obsolescence in the
development (NPD) using the stage-gate approach.
absence of tracking technological trends and
developing smart and connect products • Centre of Competency created, for IoT/Smart technology and
• Lack of a comprehensive product portfolio to Cost-Effective Product design.
meet the growth strategy • R&D Infra strengthening in progress across businesses and
• Absence of a product pricing mechanism in line central R&D.
with competition, demand etc.
• Introduction of more energy-efficient products
Ability to commercialize new innovation

Legacy culture posing a challenge to the desired • Provide feedback to managers through periodic Dipstick
Crompton culture surveys & AI-enabled Employee Engagement tool to address
gaps.

Changes in material trends impacting business model, • 

Across Business Units substitute material trials are ongoing for
cost and growth vision various products. Material development is currently tracked
in the New product development and Project Management
• Shift to usage of plastic from metals meetings, for cost-effective resources.

• Availability of low-cost substitutes due to change

in material trends

40 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

RISK ACTION PLAN

JioMart and similar platforms leading to consolidated • Collaborate with B2B platform providers.
buying by general trade
• Explore, experiment and scale-up D2C model through
partnership with digital players.
• Focus on omnichannel strategy ensuring correct pricing
strategy.
Increasing competitive intensity due to entry of new • Continued focus on cost efficiency to develop products at
players and stepped up brand investment competitive prices.

• Expanding reach and improving product availability.

• Accelerating the pace of innovation and new product
development.
• Step up investment in brand (significant higher spend on
advertisement on radar and accelerated focus on digital
media).

Supply Disruption
RISK ACTION PLAN
Impact of uncertain events (COVID-19 etc.) on imports • Vendor broad basing done to make key SKUs available as
of raw materials/finished good, import restrictions per demand forecast and robust plans in progress to ensure
owing to Geopolitical tensions (China) minimizing gaps in small appliances/lighting supplies.
• Challenges of single source supplies to be tracked and
business continuity plan to be defined for key products.
• Businesswise evaluation of indigenizing imports is in
progress.
• Indigenous capacity set up for TPW Fans which were hitherto
imported.
Disruption (fire, strike etc.) at own factory or third-party • Tier 2 Suppliers for key components/commodities identified
vendor premises impacting production and data compiled with spend analysis for immediate shift in
case of disruption.
• Capacity planning and readiness at identified alternate
vendors periodically reviewed.

Reputational Risk
RISK ACTION PLAN

Inability to attract customers due to lack of an after- • Service transformation project to be initiated in financial year
sales service network to cater to remote areas 2021-22.
Poor customer retention due to product failure and • Make a roadmap to become Best-in-Class – to cover –
consequence management People, Process and Technology.

Substandard product quality leading to brand • Incoming Quality Controls, Test Bed Results, Pre Dispatch
degradation Inspection and other Quality parameters are a part of the
Quality Score of Project Delight. Progress status monitored
and reviewed with Leadership team every month.
• Due to various initiatives undertaken, approximately ` 40
crore reduction in cost of poor quality “CoPQ” has been
achieved this year.

Annual Report 2020-21 41

Governance Risk – Compliance

RISK ACTION PLAN

Regulatory changes – Energy efficiency Standards & • Cost-effective 1-star product platform design complete for
Performance Ratings and EPR Ceiling Fans and pilot in progress for implementation as per
mandatory timeline, using BLDC technology.
• BEE norms complied for Bulbs.
• While new BEE norms are not mandatory for Pumps, we have
achieved the norms in Radial flow pumps. For Mixed flow,
inhouse design competency being built and collaborating
with IIT, Mumbai for SRM technology.

Non-compliance to product safety laws and other • Beacon, the legal compliance tracking tool, has been
industry-specific guidelines made more robust by validating all the key provisions and
mandating supporting document upload for critical tasks.
Regulatory Risk - changes in government regulations
requiring changes to business model which in turn • Legal compliance training calendar rolled out and in progress.
may impact cost and growth

Governance Risk – Sustainability

RISK ACTION PLAN

Sustainability - Increase in competition and change in • Sustainability Checklist prepared includes key KPIs.
consumer behaviour towards Sustainable products
• Cost of poor quality reduction, energy conservation, reduction
in distance of product movement and oriented actions are in
progress.
• 9 units selected for pilot (5 CGCEL units and 4 key vendor
units per PL).
• Gap assessment completed at all the units and observations
closure in progress.

Operational Risk – Human Resources

RISK ACTION PLAN

Inability to achieve organization’s goals due to • Introduced IT-enabled tool for customized development
absence of skill set programme.
• Implemented quarterly governance mechanism of skill
matching.
• Pilot project conducted to enhance Talent assessment with
data.

42 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

RISK ACTION PLAN

Inability to curtail attrition and develop skill set • Driving committed Business Unit-specific Employee
Engagement Action covering
- Recognition
- Continuous Performance discussion
- Manager coaching & conversation
- Work-life balance
• Career discussion
• Design thinking
• Drive Leadership Team level actions
• Drive engagement for Work From Home (WFH)
Absence of succession planning • Multi-layer calibration process adopted across all functions,
Business units and Regions.
• Launched Internal job portal process.
• Career discussion conducted with 450+ employees &
Individual Development Plans prepared.

Operational Risk – Cyber Security

RISK ACTION PLAN

Unauthorized access to confidential data through • Extended the contract for VAPT (Vulnerability assessment
exploiting vulnerabilities, leakage of Company and penetration testing) to include 33 IT Applications + 3
sensitive data/information Locations + all firewalls + CISCO core switch. Project has
been kickstarted in January 2021.
• SSO Portal is now active for all IT Applications in the project
scope. It is live for all employees. SSO is now stabilized.
• A concept note on Privilege Management (Ph2 and Ph3 of
SSO Project) is being prepared and to evaluate with the
potential partners on project timelines and costs.
• Data risk protection assessment is in progress.
Leakage of Company sensitive data/information • Data Classification project kicked off.
• Basis the project recommendation, next steps shall be
initiated for Data security.
In absence of periodic assessment of Disaster • Annual Data Centre (DC) Disaster recovery (DR) Drill for SAP
recovery, functioning of Disaster recovery site cannot has been successfully completed in January 2021 along with
be ascertained Finance.
• Preparation of list of IT Applications, classifying them on
impact to business, and proposing DR for Critical Applications
hosted on DC, in progress.
• For Cloud Applications back-up and DR from Vendor side is
being explored.

Annual Report 2020-21 43

INTERNAL CONTROL SYSTEMS abided environment, while achieving the Company’s
Your Company believes in continued reinforcement of the Objectives.
financial and operational controls, intended to improve
transparency, accountability and effectiveness of the Your Company is in constant endeavour towards
Company’s processes. Your Company’s policies and IT enablement in all key processes. Major controls
procedures are aligned to the Internal control framework under Credit policy, Customer/Vendor management,
that ensures: Procurement, Scheme settlements, E-invoicing/waybill,
etc. are embedded within SAP, assuring accuracy.
• Coverage of key processes that impact the reliability of
Third-party validation is also initiated to ensure the
financial reporting
system configuration is effective.
• Periodic Control testing to assure operational
effectiveness Your Company has been progressively building capability
in key functions like Innovation, Design, Procurement,
• Implementation of remedial measures arising out of and Quality for standardizing processes across the
testing Company for uniform processes and superior decision-
• Regular monitoring by Senior Management on the test making.
effectiveness
Your Company is also embarking on the journey of
• Regular review by the Audit Committee, on the progress Shared services for Accounts Payable process, for
of the actions, twice a year effective utilization of Company’s resources, time and
Your Company has a robust Internal Audit mechanism, expertise in driving process improvement and better
conducted as per the pre-approved calendar. Basis decision-making.
the audit, Internal auditors periodically report on
the design deficiency and operational inefficiency, if The Certificate provided by the Executive Director &
any, apart from recommending further improvement Chief Executive Officer and Chief Financial Officer in the
measures, to accomplish the Company objectives more Certification Section of the Annual Report discusses the
efficiently. The observations and agreed action plans adequacy of the internal control systems and procedures.
are presented quarterly, to the Audit Committee that
reviews the adequacy of the controls implemented by the RESEARCH AND DEVELOPMENT (R&D)
Management. In addition to quarterly Audit Committee Your Company endeavours to be best-in-class, promoting
meetings to discuss financial results, two Audit Committee strong foundation of Research and Development through
meetings are held, to review specific processes, on the one of its behavioural pillars of innovation. Culture
improvements in systems and outcomes. of creativity is embedded in the Company’s people
and processes. The Company’s In-House Research
Continued Improvement initiatives and control and Development team strives for best technology­
Standardization based sustainable product innovations, with efficient
In the ongoing COVID scenario, data security is the prime product lifecycle, including design, development and
need of the hour. To ensure Data and IT system security, manufacturing process.
your Company has enabled ‘Single Sign on” (SSO),
which will ensure that access to Company’s IT systems Continuing the spirit of creating consumer delight, your
and applications, is available only to authorised users. Company has launched an array of products, across
segments that are designed to prove its class, both
Controls concerning authorization to SAP are reviewed technologically and aesthetically:
periodically, and are initiated towards function based
User access, supported by Governance Risk and Controls
Fans:
module of SAP. Further actions are initiated to effectively
utilize the evolving SAP solution around process controls • This year saw the introduction of the SilentPro IoT, a
and continued monitoring through automations and flagship product into the silent fans category. It works
exception management. with MyCrompton App.

E-learning modules have been developed to enable • Silent Pro Enso Fan has received prestigious
employees to keep themselves abreast of the Company’s international IF Design Award for 2021. This is one of
Code of Conduct, POSH compliances and Whistle its kind award where 67 jury members worldwide assess
blowing rights. This is to ensure Company’s employees products from idea, form, function, differentiation &
are aware to always operate in a compliant and control impact standpoint before selecting a winner.

44 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

• SilentPro Enso SMART, silent fan was launched with Appliances:

IoT-enabled feature. Company has invested into Your Company strengthened the portfolio of appliances with
creating IoT capability & this was its first successful various new launches: -
launch along with IoT-enabled LED bulb Immensa.
• Water heaters – Rapid Jet +, Arno Neo Series (5Star
• Torpedo, a new series in table-pedestal-wall fan offers Rated Product), Rapid Jet 6L & Juno 6L,10L,15L
superior air delivery and high speed at a much lower and Sol Aura 10L, 15L & 25L, Solarium Qube Digi
operating noise level. models. Strengthen Water Heater line up with launch
of 6L category to fill the portfolio Gap.
• Markle series, a Designer range of ceiling fans
operates at 55 Watts power, with superior aesthetics • Air coolers – Optimus 65IoT (Smart Air cooler), Gale
and Anti-dust feature. 60/90 L Desert cooler with new innovative polymer
Material, CMF upgradation of existing line-up.
• Surebreeze Style is a stylised fan with decals on the
• Mixer Grinder & Iron Category - Revamped line-up
blades which offer a low-cost décor option in the
of Mixer Grinder with launch of 9 products in various
economy range of fans.
segments to strengthen portfolio. Launched 7 new
• Industry’s first customisation idea through Decal models for Iron Category with industry-leading
features and performance.
technology (and after successfully piloted in many parts
of India) launched in major markets where consumer • Small Domestic Appliances & Room Heaters -
gets customised Indian art designs on ceiling fan to Launched a complete range of Sandwich makers,
enhance their décor. Grill Toaster, Blenders and 3 room heaters to enter
and explore the opportunity of new market.
• As part of continuous learning about unmet consumer
need, the Company was able to touch base with • All these products are meticulously designed with
various consumers as well interior decorators and attractive craftsmanship and packaging.
architects and was able to successfully create CFM
framework towards bringing new colours and finishes Lighting:
to market. 30+ new trendy finishes like holographic, • Developed novel IoT dimming solution for street
colour gradients etc. were launched during the year. lighting application. This solution gives dimming
capabilities to customers going for just feeder level
• Décor Fans Catalogue 2020 – the launch of the ON/OFF control of street lights, which gives extra
premium booklet was aimed at offering a unique energy saving.
immersive journey with 9 different Décor stories and
• Innovatively engineered, aesthetically designed
concepts to guide the consumer to make the right fan
Higher wattage street light with Highway Optics.
purchase basis their décor preferences. This is the first in-house optics design (Lens) street
light which gives reduction in total cost of ownership
Pumps: by > 10%.
• Best in industry Openwell and Borewell agricultural
• Introduction of economical range of STAR LORD
pumps range “ULTIMA” and “MAGNA” launched
Downlighter and STRIKO cabinet light are a good
with “Ultimate performance, Ultimate reliability” and
value proposition product in B2C.
“Maximum performance Maximum reliability”.
• Introduction of FREELINE New Range of Node based
• To address today’s consumer lifestyle needs, and water Linear lighting in customised shaped (Hexa, Penta,
requirement of high-rise buildings, your Company Square etc.). This comes with electromechanical
launched Premium range of pumps, “Mini Neo” with 2 connectors for ease of installation and service.
years warranty for longer life. Elegant design with excellent engineering for
modern interiors which gives 50% energy savings.
• To take care of varying site conditions as well as power • R&D efforts also helped the Company in providing
supply conditions, your Company launched “Crompton the best in industry solutions to customers for
Armor” range of highly advanced control panel with all various projects of national significance and in
1st in industry features. Armor control panel protects bagging major orders in GMR Dial, Rajkote Smart
pump in case of adverse site and power supply City, PNC Infra, NHAI, BDA, Amazon 140LPW Batten
conditions and gives real peace of mind to consumers. to name a few.

Annual Report 2020-21 45

CONSERVATION OF ENERGY, TECHNOLOGY Closure of the observations is ensured by following
ABSORPTION AND FOREIGN EXCHANGE PDCA cycle and taking effective Corrective and
EARNINGS AND OUTGO Preventive Actions (CAPA) in reasonable timeframe.
As required by the Companies Act, 2013, read with The observations are also shared amongst units for
cross-learning and improvement. Learnings from other
the Companies (Accounts) Rules, 2014, the relevant
organisation incidents and taking preventive actions are
data pertaining to conservation of energy, technology also initiated as a proactive approach in ensuring safety
absorption and foreign exchange earnings and outgo performance.
is given in the prescribed format as Annexure 3 to this
Report. A comprehensive EHS scorecard has been deployed
across units and is monitored every month for the
performance and corrective, preventive action are taken
ENVIRONMENT, HEALTH & SAFETY (EHS)
as appropriate. Meetings are conducted to promote cross-
A comprehensive EHS manual titled KAVACH 3.0 learning between Manufacturing units with an agenda to
comprising the policies, procedures and work conserve natural resources through water consumption
instructions has been prepared. The previous existing reduction, electricity consumption reduction, proper
KAVACH 2.0 version was revised to 3.0 version in the disposal of hazardous wastes etc. Various promotional
financial year 2020-21. The EHS policy of the Company activities taken towards EHS awareness are also
has been revised wherein the KAVACH deployment to all shared between the units to continuously improve and
the products and processes has been committed. Apart standardise best practices. Safety-related performance
from the scope change, the current KAVACH manual is analysed in a standardised data-based approach and
also talks about obligations with respect to Extended learnings are shared to continually improve upon from
Producer Responsibility from e-waste and plastic waste the existing scenario.
handling and treatment point of view. Sustainability for a
mutually inclusive growth along with the society where A brief on EHS programmes of your Company is as
your Company operates is also addressed in KAVACH under:
policy.
Environment – a green pursuit
To ensure focussed delivery on EHS activities, each plant In addition to the focus in conserving finite resources
carried out Aspect Impact and HIRA (Hazard Identification together with reducing harmful emissions, sustainable
and Risk Assessment) review for various activities and management at all stages of the value chain and through
identified Controllable/Uncontrollable and Normal/ the life cycle of the products is now an essential part of
Abnormal/Emergency scenarios in each operation. your Company’s policy.
Your Company is greatly conscious of its responsibilities Your Company is committed to achieving its target by
towards Health, Safety and Environment Management. implementing management programmes. All units are
As mentioned above, a policy on Occupational Health, complying with Zero liquid discharge system along with
Safety and Environment is already in place. During focus on reduction in air emissions.
the year, your Company complied and excelled with
In other environmental focus areas, your Company has
EMS 14001 implementation. Also all units successfully
complied with all environment-related legal statutory
migrated from OHSAS 18001 and got certified under ISO
requirements laid by the Government from time to time.
45001 which is an important milestone in Safety journey
Your Company is highly focussed on carbon footprint
of the organisation.
reduction through the manufacture and sale of energy-
Single IMS (Integrated Management System) is in place efficient products.
which is the foundation of the overall Health, Safety and In the current financial year, 11 lakh MWh of energy
Environment framework at your Company. savings has been possible from the production of
In spite of the challenging COVID situation, EHS teams energy-efficient star rated products supported by various
carried out Safety audits across CGCEL Manufacturing process improvement initiatives.
units namely: Baddi Fans, Baddi Lighting, Bethora Fans, Another significant milestone achieved this year is
Kundaim Fans and Vadodara Lighting and brought out the compliance with e-waste for fluorescent and other
opportunity areas for continual improvement in Safety mercury containing lamps under Extended Producer
performance. Best practices were also identified, Responsibility (EPR) of CGCEL.
highlighted and taken for horizontal deployment.
Reduction in energy consumption:
At Goa and Ahmednagar Units, third-party safety audit
was carried out as per IS 14489 requirement of Factories Heat loss of oven was arrested by running plant on
Act, 1948. alternate days with 2 shifts at Bethora, this has resulted
in saving of 210 MWh.

46 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Replacement of all shop floor & office conventional light are equipped with fire detection system to trigger a timely
fittings by LED fittings at Ahmednagar pumps unit; saved alarm in case of any fire incident.
103 MWh in 2020-21 vs 2019-20.
Your Company is committed to building a safety culture
Replaced 20 Nos. of 90 W streetlights with 35 W LED by strict adherence to Work Permit System (WPS) and
streetlights at both Baddi Fan Units which has given a Daily Tool box talks.
saving of 3.34 MWh in 2020-21.
Regular interaction is maintained through Safety
Reduction in water consumption: Committee Meetings with all associates. Fire-safety
Installed Auto operating taps at Goa units which has drills, safety week celebration and continuous safety
saved water by 29% over last year. (In 2019-20 Water/ training to all employees begin with adequate induction.
Employee was 3.63 KL, in 2020-21 Water/Employee is Internal and cross plant safety audits are conducted too.
2.6KL). All actions and recommendations are being recorded,
evaluated and acted upon by respective EHS leaders.
With STP in place at Goa units, your Company was able
to recycle 15% more water w.r.t. last year. In 2019-20: Safety standards are monitored through a focus
3,368 KL, in 2020-21: 3,876 KL. on appropriate safety control, elimination of unsafe
Auto Water Dispenser on DMB line in Ahmednagar resulted conditions and fool-proof engineering solutions (Poka-
into ~8 KL water saving/year. Yoke) as appropriate.

Maintenance of Canteen Waste Water Storage Tank at Key Safety programmes implemented during the year
Ahmednagar done resulting in increase in recycled water include:
usage by 30 KL in 2020-21 with an annual savings potential
of about 150 KL. • Cross plant safety audits.

Reduced water consumption by 10% compared to last • All Manufacturing plants were safely restarted after the
year and saved 350 KL at Baddi lighting Unit by rectifying lockdown – All safety protocols were identified, checked
the water leakages & minimising the water for flushing & and the units were restarted with Zero incident.
washing. • Post start-up of the plants, COVID precautions were
drafted and strictly implemented to ensure the safety
Hazardous waste reduction and management:
and health of all the people and their families.
The Company’s Bethora Fans factory has emphasised
improving the efficiency of its manufacturing processes, • Visitor induction standard system developed and
which resulted in the reduction of hazardous waste implemented at Vadodara unit – Television and safety
generation by 5% from last year (6,100 kgs to 5,800 kgs video provided in Visitor room.
in 2020-21). • At Vadodara Chemical storage room, Spill control kit,
flame proof lighting and Emergency door installed.
The Company’s operational units ensure that all
hazardous waste are sent to the authorised disposal • Modified the Impeller balancing area layout for safe
facility/recycler approved by the State Pollution Control material handling and safe evacuation at Ahmednagar
Board. unit.

Clean and Green Environment: • Fire Fighter Certification training done at Vadodara.

Plantation/distribution of 200+ trees carried out at • 50th National Safety day celebration done across
various locations as a part of the tree plantation drive units; carried out various contests focussed on safety.
and environment day celebrations. Families were involved actively to the extent possible in
virtual mode in view of the current COVID situation.
Safety:
• Kaizens implementation focussing on first aid injury
Safety is accorded overriding priority by your Company. reduction.
The business has ensured to achieve and maintain
globally approved fire-safety standards. The units are • Rewards and Recognitions of Safety practices from
External forums: Goa unit received 4 awards from
equipped with fire fighting equipment and trained teams
various prestigious forums this year in recognition of its
to mitigate any such incident.
excellent safety practices and results. The awards are :
All the units are certified for Fire NOC requirements. i. Gomanth Suraskha Puraskar award (Third Prize)
Apart from the above, Baddi Fans, Baddi Lighting, for the second consecutive year,
Bethora Fans, Kundaim Fans, Ahmednagar pumps unit

Annual Report 2020-21 47

 ii. Prashansapatra award from NSCI Safety Awards - An app named “My Shield” been deployed at all
in Manufacturing Sector, manufacturing locations to track and ensure that all
iii. National Safety Award from Global Safety Summit employees including contract workmen maintain social
2021 in the Consumer Products Manufacturing distancing norms. The app will trigger an alarm to control
Sector, points whenever the norms are violated. This helps in
contact tracing as well.
iv. Greentech Safety award third time in a row.
An overall untiring effort has been put from all fronts to
Also, Vadodara unit received Fame Excellence
ensure the safety and health of all in this challenging
Platinum Safety Award 2020 in Safety Excellence
situation.
Category.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Health:
FRAMEWORK & VISION
This year had been very significant in ensuring the health
of all employees including contract workmen and all their Making A Difference ...
families in wake of the COVID challenge which is new to Your Company’s Corporate Social Responsibility
us and the world. strategy is aligned to its business philosophy, engages
Your Company has taken an excellent effort in taking its stakeholders and protects the environment. Aptly
care of the health of all the employees through the named, UJJVAL DEEP, the CSR programme framework
implementation of rigorous COVID prevention measures. is both in line with the Company’s long-term commitment
A core committee has been formed overseen by Vice to build positive value for the communities as well as
President of Human Resources to ensure effective address developmental priorities as identified by the
implementation and strict adherence to COVID protocols. Companies Act, 2013.
Some of the key measures include temperature and
Drawn up on the basic principles of ‘Responsible
oxygen level checking for employees at regular frequency,
partition provision between workstations, sanitisation of Business’ and ‘Shared Value’, the CSR programmes
all touch points, social distance markings, automatic are focussed on the key areas mentioned below. Your
or foot operated water dispensers, sanitisation points Company’s CSR strategy aims to provide youth with
creation, regular trainings, tracking, tracing, isolation employable vocational and life management skills and
of employees with symptoms and support in terms of contribute to water neutrality by participating in water
medical treatment etc. conservation initiatives.

Skill Health and Water Community Employee

Development Response to COVID Conservation Development Volunteering

OUR REACH Bhubaneshwar, Odisha

Water Projects Palghar, Maharashtra
Palghar, Maharashtra Hyderabad, Telangana
Beed, Maharashtra Rangpo, Sikkim
Ahmednagar, Maharashtra Bundu, Jharkhand
Jalna, Maharashtra
OUR PROGRAMMES DURING 2020-21
Skill Development SKILL DEVELOPMENT
Solan, Himachal Pradesh The skill training programmes are designed to provide youth
Ahmednagar, Maharashtra an opportunity to earn a respectable livelihood. The theory
Vadodara, Gujarat and practical trainings are aligned to the National Skill
Coimbatore, Tamil Nadu Development Mission as well as the industry requirements.
Guwahati, Assam Assistance is extended to the youth to find placement in the
companies as well as to set up their businesses.

48 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ELECTRICAL AND PLUMBING TRADES trained and 98 youth were placed from those trained during
Your Company has collaborated with partners to run 9 the current year and previous year.
centres across the country which provide vocational training
in electrical and plumbing skills to the youth. During the
3-month training, the youth are taught vocational skills,
provided hands-on training, and trained in soft skills to
build their confidence and make them ready to work in a
professional work environment.

SEWING MACHINE OPERATOR PROGRAM

Your Company supports skill training of women in the
During the year, 1,090 youth were trained and 616 youth
were placed in jobs. Marathwada, Vidarbha and Palghar regions of Maharashtra
to operate the sewing machine and stitch as well as
maintenance and upkeep of the sewing machine over a
period of 3 months.

During the year, 400 women completed their trainings and

270 of them have been linked to livelihood opportunities so
far.

WIREMAN AND HOME APPLIANCE REPAIR PROGRAM

Your Company supports skilling of youth in Maharashtra in
the field of Electrical, Wireman and repair of Home Appliances
followed by placement and entrepreneurship assistance.
The students participate in the Soch Ka Parivartan (Attitude
Transformation) module. This is designed to help students,
who come from different and often, tough backgrounds
dealing with harsh problems, build their self-esteem and
confidence and help them develop a positive attitude.

The project was initiated during financial year 2019-20 and

targeted to train 500 youth. During the year, 68 youth were

Annual Report 2020-21 49

HEALTH AND RESPONSE TO COVID-19
As a part of the commitment to rise to the occasion when the Nation needs it the most, your Company extended its support to
Hospitals, COVID Care Centre and those impacted by pandemic like daily wage workers of Hospitals, people living in slums
and rural areas. Crompton has also extended its support to front line workers working relentlessly to fight the pandemic.

SUPPORT TOWARDS AHMEDNAGAR FIRST PLATFORM

In Ahmednagar, when the lockdown hit and the Civil Hospital was struggling to keep up with the number of patients, a group
of industrialists joined hands to form “Ahmednagar First Platform” to raise funds to support the Hospital. Your Company
supported by supplying PPE kits, masks, face shields and ventilators to the Ahmednagar Civil Hospital. The Ahmednagar
First Platform also donated masks and PPE kits to policemen who were risking their lives and serving the Nation as well as
arranged for meals and ration kits for migrant workers stranded due to the lockdown.

SUPPORT TOWARDS VENTILATORS AND OTHER HOSPITAL EQUIPMENT

Early on, in April 2020, as we came to know more about COVID-19 and its impact on the human body, it became abundantly
clear that ventilators would be the game changers. COVID-19 was attacking the functioning of the lungs, and hence, it was felt
that patients would need external assistance by moving breathable air into and out of the lungs. Till date, your Company has
provided a total of 20 ventilators to Grand Port Hospital (Mumbai), Bharathi Hospital (Pune) and Ruby Hall Hospital (Pune).
Your Company has also provided 30 oxygen cylinders to ESIC Katha hospital in Baddi.

In addition to the above oxygen facilities, your Company has also provided equipments critical for patient care such as ABG
machines, multipara monitors, high flow nasal cannulas, servo humidifiers and pulse oximeters.

At Crossroad Hospital in Vadodara, your Company is currently supporting set up of a CR system and procurement of an ICU
on wheels to cater to the patients. At North District Hospital in Mapusa, Goa, your Company supported procurement of test
kits and refrigeration and AHU facilities.

At Tata Memorial Hospital, your Company supported the import of critical equipment like ventilators, oxygen concentrators
and dialysis machine as well as procurement of platelet agitator.

At Yusuf Meherally Centre, multi para monitor, microscope and equipment critical to provide eye surgeries to patients is
being procured.

Through the above initiatives, your Company was able to build the capacity of hospitals across Maharashtra, Gujarat, Goa
and Himachal Pradesh. These equipments will outlive the pandemic and provide care to patients throughout their life.

Ventilators at Ruby Hall, Pune ABG Machines at Vasai-Virar COVID Centre

LTMG Hospital, Mumbai

By June 2020, the COVID cases in Mumbai were on a steady increase and ICU wards were functioning at 95-97% capacity,
with a constant fear that even a marginal increase in the rate of increase of daily cases would mean non-availability of beds

50 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

for the critical patients. Your Company helped LTMG, Sion Hospital set up a new ICU ward by providing basic essential
equipment like hospital beds, multi-para monitors and syringe infusion pumps to cater to the growing number of patients.
Your Company also provided PPE kits to the doctors and nurses who were working overtime in ICU to make-up for their
colleagues who had tested positive for COVID due to lack of PPE kits, while constantly living with the fear that they would be
the next victims of the virus.
“We extend our sincere thanks to your organisation for donating PPE kits to the RMO (Resident Medical Doctors) of LTMG
Hospital, Sion Hospital, for the COVID-19 pandemic. These kits will be used by our residents working in fever ward; COVID-19
ICU and COVID suspect operation theatres.”
- Dr. Geeta Patkar, Admn, COVID Ward, Sion Hospital

TELE-ICU FACILITY IN GOVERNMENT HOSPITALS

It is estimated that about 5% of COVID patients require critical care. However, there is a lack of Intensivists available to treat a
large influx of COVID-19 patients and often, these patients need advanced therapy at a moment’s notice. Such coordination
and decentralisation of care is only possible if super specialists are connected to as many beds as possible so that their skill
and experience is maximally utilised. Training large number of personnel takes months to years and is not a feasible solution
in the short-to-medium term.

Your Company supported the tele-ICU facility in Osmanabad District Hospital and ESIS Hospital in Mumbai. Using technology
platforms, the patients are connected to an off-site command centre with critical team care (intensivists and critical care
nurses) through real-time audio, video and electronic means. This helps non-critical care doctors/nurses to be on the bedside
and provide care based on guidance from the critical care healthcare professionals sitting at the command centre.

Under the programme, your Company has supported 518 patients in both the hospitals to access the tele-ICU facility.

COVID-19 RELIEF PROJECTS – SUPPORT TO COMMUNITIES

Distribution of meals to communities
In May 2020, when the virus and the lockdown was at its peak,
your Company supported distribution of free meals twice a day
for a period of one month to families in Vadodara. A total of
90,000 meals were distributed to daily wage earners, migrant
workers, homeless people, unemployed and dependents in
Vadodara to ensure their well-being.

The Company also supported distribution of meals to 25,000

slum dwellers in Mumbai during the peak of lockdown.

Annual Report 2020-21 51

DISTRIBUTION OF RATION KITS IN PONDA
In the Kundaim and Bethora villages of Goa, one will largely
find the families of workers from various parts of the country
who work in the nearby manufacturing facilities. Your Company
supported in distributing 1,500 ration and vegetable packets
to families in Kundaim village. Each packet contained basic
vegetables like onion, potato, carrots and chillies. In Bethora,
ration kits containing rice, wheat and dal to 700 families were
distributed.

DISTRIBUTION OF RATION AND HYGIENE KITS TO

MIGRANT WORKERS RETURNING HOME
The restriction on movement and the lack of jobs and money
forced millions of unorganised and temporary workers, migrant
workers and their families across the country to walk the long
way back to their homes. Your Company supported a drive to distribute over 300 food and sanitation kits to those passing
through Ahmednagar on their way to different parts of the country like Bihar, Madhya Pradesh, Chhattisgarh, Uttar Pradesh
and West Bengal.

MEALS TO COVID-19 PATIENTS

During the months of August 2020 and September 2020, Ahmednagar saw a spike in cases. The Ahmednagar District
Council set-up a COVID care centre at the Government Polytechnic College with a capacity to serve 150 patients.

Your Company supported provision of 3 meals – breakfast, lunch, and dinner to the patients admitted in the centre. Over
27,000 meals were served to 550 patients during August 2020 and September 2020.

SUPPORT TOWARDS PROTECTIVE GEAR

St. Jude India Child Care Centres offer children undergoing
cancer treatment a ‘home away from home’ that provides a
hygienic, protective and nurturing environment. In light of the
pandemic, the children, their parents, the centre staff and other
support workers were advised to use masks and gloves to
prevent the spread of the virus and ensure safety of the families.

52 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Your Company extended its support to the work done by St Jude’s by sponsoring masks and gloves for the children
undergoing treatment, their parents and the staff at St Jude’s for 8 months starting August 2020.

WATER CONSERVATION
Your Company’s water conservation projects are focussed on reducing the impact of natural calamities like droughts and
making the village and communities water secure. These programmes also lead to increased employment options within
agriculture and allied activities for these communities.

Promotion of climate change adaption in drought-prone villages of Maharashtra

During the year, the Company supported the project to make 4 drought-prone villages in the Ashti Block of Beed district in
Maharashtra resilient to climatic and non-climatic hazards and improving the quality of life for these communities.
Under the project, soil and water conservation and resource development measures will be undertaken to increase the water
availability, locals will be trained in sustainable agriculture development practices, and awareness and capacity building will
be undertaken for the key leaders. Lastly, the project will work with women to create SHGs and promote health and nutrition.

Water Absorption Trench to increase water absorption and

reduce soil erosion

Annual Report 2020-21 53

Enriching land and water productivity through soil and water conservation at Paregaon Khurd
During the year, your Company supported the project to strengthen the water resources for agricultural land development
in Paregaon Khurd, Ahmednagar. The project will work towards improving water capacity through rainwater harvesting,
engaging communities to improve water productivity and water use efficiency while building their skills to manage land and
water resources in a sustainable manner.
During the year, your Company was able to complete repair of 2 earthen nalla bund in the village.

Ongoing work of cement nalla bund

Watershed development in Kauthadi village COMMUNITY DEVELOPMENT

As a part of its commitment under “Responsible Business”,
your Company undertakes programmes for the benefit of
the communities in and around our business areas.

Distribution of Happiness Boxes

Your Company supported distribution of Happiness Boxes
of over 14,000 kits to children and their families, as a
substitute for the meals, the children would have had access
to were they still in school. Each Happiness Box contained
ration supplies, biscuits, spices, toiletries, notebooks and
stationery for 1 month.

Life skills and citizenship programme for students

Your Company has supported imparting of Citizenship
Values and Life Skills development programmes in schools
and colleges to fill this gap.

Ongoing nalla deepening work

During the year, your Company supported the project

to strengthen the water resources for agricultural land
development in Kauthadi village, Ahmednagar. The project
will work towards improving water capacity through
rainwater harvesting, engaging communities to improve
water productivity and water use efficiency while building
their skills to manage land and water resources in a
sustainable manner.

54 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Online sessions were held in 15 schools where 1,200 and teachers. Till date, the stories have been viewed over
students were divided into 34 groups to discuss critical 3,500 times by the students.
citizenship skills, especially in light of the COVID-19
pandemic. “Sessions were so interactive, like we could speak our
minds out here and we even had the good fortune to be part
In colleges, workshops were held on topics such as gender, of so many interesting activities.”
personal integrity, India’s heritage and busting fake news. - Student from standard 7
Your Company was able to reach 4,930 students in 5 cities
and 46 colleges through these sessions. “Thanks for giving me this opportunity to distribute the Diwali
Gift (My Happy Bags) to our school’s standard 7. Children
CMCA also designed and distributed “My Happy Bags” were very much excited for getting an amazing opportunity
to 750 students in 9 government schools. These bags to meet their classmates & teachers in school after a long
contained art and stationery material, a toy like Rubik cube duration of lockdown. They all were very happy to receive
or top, art paper for DIY crafts, My Happy Book with 150 the Happy Bags which was given by CMCA team. They all
activities and suggestions on various themes along with a were in discipline and have put the mask on their mouth
weekly planner, and cloth masks. and were also following the rules of social distancing & were
also excited to see the gifts which were in their bags & have
Your Company also supported in digitisation of Magic promised us that they will make the best use of the availed
Cap Stories for easier and higher reach to students. Short gift materials. Thank you team CMCA for taking efforts to
stories, with a message and call to action were made into make our children become good citizen of tomorrow!”
short videos uploaded on public platforms. The link to these
- Teacher at Guru Nanak High School, Mumbai
stories was distributed to the students through the schools

Mobile Milk Bank

Your Company has supported setting up of a mobile human milk bank, a service which will aid in collection of excess from
lactating mothers in communities and hospitals and deliver to Niloufer Hospital in Hyderabad, Telangana where the milk will
get pasteurized and distributed to neonates in need, leading to a decrease in infant mortality and morbidity.

EMPLOYEE VOLUNTEERING
The COVID-19 pandemic forced the world to move online – every imaginable activity was being conducted virtually. However,
it is easy to question the reality of everything behind a screen.

Your Company launched a platform to help employees re-connect with one another as well as to partake in Crompton’s CSR
initiatives.

Under the first leg of the programme, your Company committed to providing two happiness boxes to children as substitute
for the mid-day meals they were missing due to the lockdown.

Annual Report 2020-21 55

 Your Company launched the Fit Crompton Movement,
whereby employees were paired in teams according to
geography and were encouraged to walk, run and workout
to raise money for the Happiness Boxes. For every kilometre
that the employee covered, the Company committed ` 10
towards the Happiness Boxes. During the month of October,
859 employees participated in the Movement and raised
` 7.59 lakhs which was spent towards distributing 1,380
Happiness Boxes to children in Vadodara.
During the year under review the Corporate Social
Responsibility (‘CSR’) Policy was amended pursuant to the
amendment of Section 135 of the Companies Act, 2013 and
the Companies (Corporate Social Responsibility) Rules,
2014.
Your Company’s CSR Policy statement and annual report
on the CSR activities undertaken during the financial year
ended 31st March, 2021, in accordance with Section 135 of
the Companies Act, 2013 and the Companies (Corporate
Social Responsibility Policy) Rules, 2014 are annexed to this
report as Annexure 4.

MATERIAL CHANGES AND COMMITMENT SHARE REGISTRAR & TRANSFER AGENT (R&T)
AFFECTING FINANCIAL POSITION OF THE M/s. KFin Technologies Private Limited (Formerly Karvy
COMPANY Fintech Private Limited) is the R&T Agent of the Company.
In view of the Government Directive to prevent and contain Their contact details are mentioned in the Report on
the spread of COVID-19 and to ensure safety and well- Corporate Governance.
being of employees and stakeholders, the operations of the
Company at all the offices were closed as per the directives PUBLIC DEPOSITS
of the respective State Government/Central Government. No public deposits have been accepted or renewed by your
Company during the financial year under review pursuant to
MATERIAL ORDERS OF REGULATORS/COURTS/ the provisions of Section 73 and 74 of the Act read together
TRIBUNALS with the Companies (Acceptance of Deposits) Rules, 2014.
No significant or material orders were passed by the
Hence, the requirement for furnishing of details relating to
Regulators or Courts or Tribunals which impact the going
deposits covered under Chapter V of the Act or the details of
concern status and Company’s operations in the future.

56 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

deposits which are not in compliance with the Chapter V of Companies Act, 2013 read with the Companies (Cost
the Act is not applicable. Records and Audit) Rules, 2014 and have them audited
every year and accordingly, such accounts and records
AUDITORS are made and maintained in the prescribed manner.
(a) Statutory Auditors:
The Board at its meeting held on 21st May, 2021 based
The Company’s Statutory Auditors, M/s Sharp &
on the recommendation of the Audit Committee,
Tannan, Chartered Accountants, who were appointed
approved the appointment of M/s. Ashwin Solanki
with your approval at the 2nd AGM for a period of five
years, will complete their present term on conclusion & Associates, Cost Accountants (Firm Registration
of the ensuing 7th AGM of the Company. Number: 100392) as the Cost Auditors of the Company
to conduct audit of the cost records of the Company
The Board, on the recommendation of the Audit for the financial year 2021-22. A remuneration of
Committee, recommended for the approval of the ` 5.50 lakhs plus applicable taxes and out-of-pocket
Members, the appointment of M/s Sharp & Tannan, expenses, has been fixed for the Cost Auditors subject
Chartered Accountants, (Firm Registration Number: to the ratification of such fees by the Members at the
109982W) as the Auditors of the Company for a second ensuing AGM. Accordingly, the matter relating to the
term of four years from the conclusion of the ensuing ratification of the remuneration payable to the Cost
7th AGM till the conclusion of the 11th AGM. On the Auditors for the financial year 2021-22 will be placed
recommendation of the Audit Committee, the Board at the ensuing AGM. Your Company has received
also recommended for the approval of the Members,
consent and eligibility certificate from M/s Ashwin
the remuneration of M/s Sharp & Tannan, Chartered
Solanki & Associates.
Accountants for the financial year 2021-22. Appropriate
resolution seeking your approval to the appointment
(c) Secretarial Auditors:
and remuneration of M/s Sharp & Tannan, Chartered
Accountants as the Statutory Auditors is appearing in Pursuant to the provisions of Section 204 of the
the Notice convening the 7th Annual General Meeting
Companies Act, 2013, read with the Companies
of the Company.
(Appointment and Remuneration of Managerial
The Company has received a consent letter and Personnel) Rules, 2014, the Board, at its meeting held
eligibility certificate from M/s Sharp & Tannan, on 15th May, 2020 based on the recommendation of
confirming that they are not disqualified from the Audit Committee, approved the appointment of
continuing as Statutory Auditors of the Company. M/s. Mehta and Mehta, Practicing Company Secretaries
(ICSI Unique Code P1996MH007500) as the Secretarial
The Auditors have issued an unmodified opinion on
Auditor to conduct audit of the secretarial records of the
audited financial statements of the Company for the
Company for the financial year 2020-21. The Secretarial
year ended 31st March, 2021. The Report given by the
Audit Report is annexed herewith as Annexure 5 to the
Auditors on the financial statements of the Company is
Report.
part of the Annual Report.

During the year under review, there were no material or Further, pursuant to the aforesaid provisions and
serious instances of fraud falling within the purview of subject to the receipt of consent letter received, the
Section 143 (12) of the Companies Act, 2013 and rules Board of Directors have appointed M/s Parikh &
made thereunder, by officers or employees reported Associates, Practicing Company Secretaries (ICSI
by the Statutory Auditors of the Company during the Unique Code P1988MH009800) as the Secretarial
course of the audit conducted and therefore no details Auditor for the financial year 2021-22 in the meeting
are required to be disclosed under Section 134 (3)(ca) held on 21st May, 2021.
of the Act.
Further, the wholly-owned subsidiaries of the Company
(b) Cost Auditors: as mentioned above are not material unlisted
Your Company is required to maintain cost accounting subsidiaries. Therefore, the provisions regarding
records as specified under Section 148(1) of the the Secretarial Audit as mentioned in Regulation

Annual Report 2020-21 57

 24A of the SEBI (Listing Obligations and Disclosure Company’s Secretarial Auditor confirming compliance is
Requirements), 2015 as amended, do not apply to included in the Annual Report.
such subsidiaries.
REPORT ON MANAGEMENT DISCUSSION AND
ANALYSIS
(d) Internal Auditors:
As required under Regulation 34 read with Schedule V(B)
Pursuant to the provisions of Section 138 of the Act,
of SEBI (Listing Obligations and Disclosure Requirements)
the Board, at its meeting held on 15th May, 2020 based
(Amendment) Regulations, 2018, report on “Management
on the recommendation of the Audit Committee, had
Discussion and Analysis” is attached and forms a part of
approved the appointment of M/s. Grant Thornton India
this Report.
LLP (Identity number AAA-7677) to conduct the internal
audit of your Company for the financial year 2020-21. BUSINESS RESPONSIBILITY REPORT
A Business Responsibility Report as per Regulation 34 of the
M/s. Grant Thornton India LLP has been appointed as
Securities and Exchange Board of India (Listing Obligations
the Internal Auditors of your Company for the financial
and Disclosure Requirements) Regulations, 2015, detailing
year 2021-22 to review various operations of the
the various initiatives taken by your Company on the
Company.
environmental, social and governance front, forms an
PARTICULARS OF EMPLOYEES integral part of this report.
There are 16 employees who were in receipt of remuneration
of not less than ` 1,02,00,000/- if employed for the full year COMPLAINTS RELATING TO SEXUAL
or not less than ` 8,50,000/- per month if employed for any HARASSMENT
part of the year. Your Company has in place a Prevention of Sexual
Harassment Policy in line with the requirements of the
Disclosures concerning the remuneration of Directors, KMPs Sexual Harassment of Women at Workplace (Prevention,
and employees as per Section 197(12) of the Companies Prohibition and Redressal) Act, 2013 (POSH Act). An
Act, 2013 read with Rule 5(1) of the Companies (Appointment Internal Complaints Committee (ICC) has been set up to
and Remuneration of Managerial Personnel) Rules, 2014 is redress complaints received regarding sexual harassment.
given in Annexure 6 to this Report. Your Directors affirm that All employees (permanent, contractual, temporary, trainees)
the remuneration is as per the remuneration policy of the are covered under this Policy. The constitution of ICC is as
Company. per the POSH Act and includes an external member who is
an independent POSH consultant with relevant experience.
Details of employee remuneration as required under
Your Company has also initiated the e-learning tool on
provisions of Section 197(12) of the Companies Act, 2013 POSH for all regular employees and also for induction of
read with Rule 5(2) & 5(3) of Companies (Appointment new employees. Your Company has also provided a Toll
and Remuneration of Managerial Personnel) Rules, 2014 Free No. for registering any POSH complaint telephonically.
are available for inspection at the Registered Office of your
Company during working hours. The Annual Report and During the year under review, 1 (One) complaint was
accounts are being sent to the shareholders excluding the received which has been investigated in accordance with
aforesaid exhibit. Any member interested in obtaining such the guidelines. The employee has not been found guilty of
information may write to the Company Secretary at the any misconduct.
Registered Office of the Company.
VIGIL MECHANISM
REPORT ON CORPORATE GOVERNANCE Your Company has formulated a Vigil Mechanism and
As per Regulation 34 read with Schedule V(C) of SEBI
Whistle Blower Policy intending to provide a mechanism
(Listing Obligations and Disclosure Requirements)
for employees to report violations. It also assures them of
(Amendment) Regulations, 2018, a separate section on
the process that will be observed to address the reported
Report on Corporate Governance practices followed by
violation. The Policy also lays down the procedures to
the Company, together with a certificate received from the
be followed for tracking complaints, giving feedback,

58 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

conducting investigations and taking disciplinary actions. It DIRECTORS’ RESPONSIBILITY STATEMENT

also provides assurances and guidelines on confidentiality Your Directors would like to assure the Members that the
of the reporting process and protection from reprisal to Financial Statements for the year under review conform
complainants. No personnel have been denied access to in their entirety to the requirements of the Companies
the Audit Committee. Act, 2013 and guidelines issued by SEBI. Pursuant to the
provisions of Section 134(3)(c) of the Act, to the best of their
The Policy also provides a mechanism to encourage and
knowledge and based on the information and explanations
protect genuine Whistleblowing among the Vendors.
received from the Company, your Directors confirm that:
Any incident that is reported is investigated and suitable
action is taken in line with the Policy. 1. the Annual Accounts have been prepared in conformity
with the applicable Accounting Standards;
The Whistle Blower Policy of your Company is posted on the
website of the Company and can be accessed at the weblink: 2. the Accounting Policies selected and applied
https://www.crompton.co.in/media/Vigil-Mechanism-and- consistently, give a true and fair view of the affairs of
Whistleblower-Policy.pdf. the Company and of the profit for 2020-21;

Your Company has also initiated the e-learning tool on 3. sufficient care has been taken and that adequate
Whistle Blower Policy for all regular employees and also accounting records have been maintained for
for induction of new employees. Your Company has also safeguarding the assets of the Company; and
provided a Toll Free No. for registering any whistle blower for prevention and detection of fraud and other
complaint telephonically. irregularities;
3 (Three) Whistle Blower complaints were received during
4. the Annual Accounts have been prepared on a going
the year 2020-21 and suitable action has been taken in
concern basis;
accordance with the policy.

LISTING 5. the internal financial controls laid down by the Company

The equity shares of your Company are listed on BSE were adequate and operating effectively; and
Ltd. and National Stock Exchange of India Ltd. The Non­
6. the systems devised to ensure compliance with the
Convertible Debentures (NCDs) of the Company are listed
provisions of all applicable laws were adequate and
on the Debt Segment of National Stock Exchange of India
operating effectively.
Ltd.
GENERAL
Your Company has paid the Listing fees for Equity Shares
Your Directors state that no disclosure or reporting is
to both the Stock Exchanges and Listing fees for NCDs to
required in respect of the following matters as there were no
the National Stock Exchange of India Ltd. for 2020-21 and
transactions on these items during the year under review:
2021-22.

ANNUAL RETURN 1. Issue of equity shares with differential rights as to

As required under Section 134(3)(a) of the Act, the Annual dividend, voting or otherwise as per Section 43(a)(ii) of
Return for the financial year 2020-21, is placed on the the Companies Act, 2013;
Company’s website and can be accessed at https://www.
2. The Company does not have any scheme of provision
crompton.co.in/investors/annual-report/.
of money for the purchase of its own shares by
SECRETARIAL STANDARDS employees or by trustees for the benefit of employees;
Your Directors state that applicable Secretarial Standards,
3. Neither the Managing Director nor the Whole-time
i.e. SS-1 and SS-2 relating to ‘Meetings of the Board of
Directors of the Company receive any remuneration or
Directors’ and ‘General Meetings’ respectively have been
commission from any of its subsidiaries;
duly followed by the Company.

Annual Report 2020-21 59

4. No fraud has been reported by the Auditors to the Audit all its locations for their tremendous personal efforts as well
Committee or the Board; as collective dedication and contribution to the Company’s
performance.
5. Issue of Shares including Sweat Equity Shares to the
employees of the Company under any scheme as per
Your Directors would also like to thank the employee unions,
provisions of Section 54(1)(d) of the Companies Act,
shareholders, customers, dealers, suppliers, bankers,
2013;
Government and all other business associates, consultants
and all the stakeholders for their continued support extended
6. No instances of non-exercising of voting rights in
to the Company and the Management.
respect of shares purchased directly by employees
under a scheme pursuant to Section 67(3) of the
For and on behalf of the Board of Directors
Companies Act, 2013.

ACKNOWLEDGEMENTS
H.M. Nerurkar
Your Directors wish to convey their gratitude and Place : Mumbai Chairman
appreciation to all the employees of the Company posted at Date : 24th June, 2021 DIN: 00265887

60 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ANNEXURE 1
AS PER THE DISCLOSURE REQUIREMENT SPECIFIED UNDER SEBI (SHARE BASED EMPLOYEE BENEFITS)
REGULATIONS, 2014 AND SECTION 62(1)(b) OF THE COMPANIES ACT, 2013 READ WITH RULE 12(9) OF THE
COMPANIES (SHARE CAPITAL & DEBENTURES) RULES, 2014, THE FOLLOWING INFORMATION IS DISCLOSED
WITH RESPECT TO EMPLOYEE STOCK BENEFIT PLANS
Crompton Crompton
Crompton Stock Crompton Stock
Performance Performance
Details of ESOP Option Plan Option Plan
Share Plan 1 2016 Share Plan 2 2016
2016 (ESOP 2016) 2019 (ESOP 2019)
(PSP 1) (PSP 2)
I. Description of each ESOP that existed at any time during the year:
1. Date of shareholders’ 22nd October, 2016 22nd October, 2016 22nd October, 2016 19th January, 2020
approval and amended on
6th January, 2021
2. Total number of options 40,00,000 1,09,68,057 31,33,731 98,00,000
approved under ESOP
3. Vesting requirements As specified by the Nomination and Remuneration Committee subject to minimum one year
from the date of grant
4. Exercise price or pricing Exercise Price is Exercise price per Exercise price per Exercise Price is
formula (`) the closing market Option is Option is the closing market
price on the Stock ` 92.83 ` 185.66 price on the Stock
Exchange which Exchange which
has higher Trading has higher Trading
Volume, as on the day Volume, as on the day
prior to the date on prior to the date on
which the Nomination which the Nomination
and Remuneration and Remuneration
Committee (NRC) Committee (NRC)
approves the grant. approves the grant.
5. Maximum term of Options granted under Options granted under PSP 1 and PSP 2 Options granted under
options granted (years) ESOP 2016 would vest would vest not earlier than one year and ESOP 2019 would vest
not earlier than one not later than ten years from the date of not earlier than one
year and not later than grant. year and not later than
five years from the five years from the date
date of grant. of grant.
6. Source of shares Primary
(Primary, Secondary or
combination)
7. Variation in terms of There have been no variations in the terms of the options
options

Annual Report 2020-21 61

 Crompton Crompton
Crompton Employee Crompton Employee
Performance Performance
Details of ESOP Stock Option Plan Stock Option Plan
Share Plan 1 2016 Share Plan 2 2016
2016 (ESOP 2016) 2019 (ESOP 2019)
(PSP 1) (PSP 2)
II. Method used to account for ESOP:
The Company has calculated the employee compensation cost using the Fair value method of accounting for the
Options granted.

The stock-based compensation cost was calculated as per the fair value method prescribed by SEBI.
III. Option Movement during the year:
1. Number of options 34,15,883 1,07,53,536 30,86,725 3,70,000
outstanding at the
beginning of the year
2. Number of options 0 0 0 71,62,750
granted during the year
3. Number of options 5,07,033 25,664 7,333 3,894
forfeited/lapsed during
the year
4. Number of options 7,36,717 56,77,725 16,22,208 51,606
vested during the year*
5. Number of options 2,75,024 1,00,000 0 32,357
exercised during the
year
6. Total number of shares 2,75,024 1,00,000 0 32,357
arising as a result of
exercise of options
7. Money realised by 5,50,88,628 92,83,000 0 83,69,138
exercise of options (`)
8. Number of options 26,33,826 1,06,27,872 30,79,392 74,96,499
outstanding at the end
of the year
9. Number of options 17,63,826 1,06,27,872 30,79,392 19,249
exercisable at the end
of the year
*Note: Vested during the year includes Vested Exercised and Vested Unexercised during the year.

62 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Crompton Crompton
Crompton Employee Crompton Employee
Performance Performance
Details of ESOP Stock Option Plan Stock Option Plan
Share Plan 1 2016 Share Plan 2 2016
2016 (ESOP 2016) 2019 (ESOP 2019)
(PSP 1) (PSP 2)
IV. Weighted average exercise price of options granted during the year whose:
i. Weighted average price Nil Nil Nil ` 405.95
equals market price
ii. Exercise price is greater Nil Nil Nil Nil
than market price
iii. Exercise price is less Nil Nil Nil Nil
than market price
Weighted average fair value of options granted during the year whose:
i. Exercise price equals Nil Nil Nil ` 160.01
market price
ii. Exercise price is greater Nil Nil Nil Nil
than market price
iii. Exercise price is less Nil Nil Nil Nil
than market price
V. Employee-wise details of options granted during the financial year 2020-21 to:
i. Senior Managerial Nil Nil Nil Mr. R. Sriram -
personnel 1,50,000 options
Mr. R. Chopra -
1,50,000 options
Mr. S. Mohanty -
1,25,000 Options
ii. Employees who were Employee-wise details are available for inspection by the Members at the Registered
granted, during any one Office of your Company during business hours on all working days except Saturdays and
year, options amounting Sundays up to the date of the 7th Annual General Meeting. The Member may also write to
to 5% or more of the the Company Secretary for details.
options granted during
the year
iii. Identified employees
who were granted
options, during any
one year, equal to or
exceeding 1% of the
Nil
issued capital (excluding
outstanding warrants
and conversions) of the
Company at the time of
grant

Annual Report 2020-21 63

Method and Assumptions used to estimate the fair value of options granted during the year:
The fair value has been calculated using the Black Scholes Option Pricing model
The Assumptions used in the model are as follows:
Particulars ESOP 2016 PSP 1 PSP 2 ESOP 2019
1. Risk-Free Interest 5.64%
Rate
2. Expected Life 5.64
3. Expected Volatility 33.25%
4. Dividend Yield No grants during the year 0.49%
5. Price of the 405.95
underlying share in
market at the time of
the option grant (`)

Crompton Crompton
Crompton Employee Crompton Employee
Performance Performance
Details of ESOP Stock Option Plan Stock Option Plan
Share Plan 1 2016 Share Plan 2 2016
2016 (ESOP 2016) 2019 (ESOP 2019)
(PSP 1) (PSP 2)
Weighted Average share price of options exercised during the year: ` 375.04
Exercise price and weighted average remaining contractual life of outstanding options
Number of Options Weighted Average Remaining
Scheme Name Exercise Price (`)
Outstanding Contractual Life (in years)
ESOP 2016 26,33,826 4.15 219.01
PSP 1 1,06,27,872 3.55 92.83
PSP 2 30,79,392 3.52 185.66
ESOP 2019 74,96,499 7.92 399.39
Diluted Earnings Per Share
(EPS) pursuant to issue of
shares on exercise of option
calculated in accordance with 9.56
Indian Accounting Standard
(Ind AS) 33; “Earnings Per
Share”

For and on behalf of the Board of Directors

H.M. Nerurkar
Place : Mumbai Chairman
Date : 24th June, 2021 DIN: 00265887

64 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ANNEXURE 2
FORM AOC-1
(Pursuant to first proviso to Sub-section (3) of Section 129 read with Rule 5 of the Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures

PART “A”: SUBSIDIARIES

Sl. No. Particulars Details
1. Name of the subsidiary (i) Nexustar Lighting Project Private Limited (NLPPL)
(ii) Pinnacles Lighting Project Private Limited (PLPPL)
(iii) Crompton CSR Foundation (CCF)
2. Reporting period for the subsidiary NA
concerned, if different from the
holding company’s reporting period
3. Reporting currency and Exchange Not Applicable as both the above-mentioned subsidiaries are Indian
rate as on the last date of the Subsidiaries
relevant financial year in the case of
foreign subsidiaries
4. Share Capital (i) NLPPL : Authorised Capital: ` 10.00 crore
Paid-up Capital: ` 7.50 crore
(ii) PLPPL : Authorised Capital: ` 10.00 crore
Paid-up Capital: ` 6.70 crore
(iii) CCF : Authorised Capital: ---*
Paid-up Capital: ---*
5. Reserves & Surplus (i) NLPPL : ` 5.64 crore
(ii) PLPPL : ` 6.81 crore
(iii) CCF : ` 2.07 crore
6. Total Assets (i) NLPPL : ` 31.90 crore
(ii) PLPPL : ` 35.75 crore
(iii) CCF : ` 2.10 crore
7. Total Liabilities (i) NLPPL : ` 18.76 crore
(ii) PLPPL : ` 22.24 crore
(iii) CCF : ` 0.03 crore
8. Investments (i) NLPPL : ` 3.21 crore
(ii) PLPPL : ` 5.45 crore
(iii) CCF : Nil
9. Turnover (i) NLPPL : ` 38.05 crore
(ii) PLPPL : ` 42.61 crore
(iii) CCF : Nil
10. Profit before Taxation (i) NLPPL : ` 7.40 crore
(ii) PLPPL : ` 8.52 crore
(iii) CCF : ` 1.62 crore
11. Provision for Taxation (i) NLPPL : ` 1.86 crore
(ii) PLPPL : ` 2.14 crore
(iii) CCF : Nil
12. Profit after Taxation (i) NLPPL : ` 5.54 crore
(ii) PLPPL : ` 6.38 crore
(iii) CCF : ` 1.62 crore

Annual Report 2020-21 65

 Sl. No. Particulars Details
13. Proposed Dividend (i) NLPPL : 73.5% i.e. ` 7.35 per equity share on face value of ` 10/- each
(ii) PLPPL : 94.7% i.e. ` 9.47 per equity share on face value of ` 10/- each
14. % of shareholding (i) NLPPL : 100%
(ii) PLPPL : 100%
(iii) CCF : 0*

*Crompton CSR Foundation, a Company incorporated under Section 8 of the Companies Act, 2013 (being a company limited by guarantee
not having share capital) primarily with an objective of undertaking/channelising the CSR activities of the Company, is a subsidiary of the
Company. Based on the control assessment carried out by the Company, the same is not consolidated as per Ind AS 110.

1. Names of subsidiaries which are yet to commence operations: Nil

2. Names of subsidiaries which have been liquidated or sold during the year: Nil

PART “B”: ASSOCIATES AND JOINT VENTURES

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures:
Not Applicable as there are no associates and joint ventures

Name of Associates/Joint Ventures

1. Latest Audited Balance Sheet Date
2. Shares of Associate/Joint Ventures held by the Company at the year end
No.
Amount of Investment in Associates/Joint Venture
Extent of Holding %
3. Description of how there is significant influence NA
4. Reason why the associate/joint venture is not consolidated
5. Net worth attributable to shareholding as per latest audited Balance Sheet
6. Profit/Loss for the year:
i. Considered in Consolidation
ii. Not Considered in Consolidation

1. Names of associates or joint ventures which are yet to commence operations: Nil
2. Names of associates or joint ventures which have been liquidated or sold during the year: Nil

For and on behalf of the Board of Directors

H.M. Nerurkar
Place : Mumbai Chairman
Date : 24th June, 2021 DIN: 00265887

66 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ANNEXURE 3 conditions in Air cooler business to mitigate high

ABS and PP price.

Pursuant to Clause(m) of Sub-section 3 of Section 134 of 7. New OEMs development for various categories
the Companies Act, 2013 and Rule 8(3) of the Companies such as Mixer Grinder and Air Cooler to meet the
(Accounts) Rules, 2014. market demand and to increase the portfolio.
8. Introduction of PM filter and antibacterial knobs in
A. CONSERVATION OF ENERGY: Air cooler.
(a) Energy Conservation Measures Taken 9. Hybrid Motor introduction in 500W and exploration
As a manufacturer and seller of electrical goods, to have 750W PowerTron motors in Mixer Grinder
your Company has a special responsibility Category.
towards energy conservation. This is reflected 10. More 5 Star rated Solar Water Heater developed
in our product development efforts and process to have better energy-efficient products.
upgrades.
11. 1250W Dry Iron Model launched which is higher
Some of the activities carried out in the area of than wattage from different competitors in Heavy
energy conservation were: dry Iron Segment.
12. Launched Crompton’s first IoT consumer product,
1. Replacement of 20 nos. of 90W streetlights
9W Wi-Fi Bulb. In addition to white light, this bulb
with 35W LED streetlights at both Baddi Fan
also provides 16 million colours with smooth
Units which has given saving of 3.34 MWh.
control from mobile app as well as voice-based
2. Heat loss of oven arrested by running plant commands from Amazon Alexa® and Google
on alternate days with 2 shifts at Bethora, Home®.
resulted in savings of 210 MWh. 13. Individual streetlight control by adding RF mesh,
3. Replacement of all shop floor & office ZigBee and NB IoT connectivity options in
conventional light fittings by LED fittings at controllers.
Ahmednagar pumps unit; saved 103 MWh in 14. Developed Human Centric Lighting solution
2020-21 vs 2019-20. based on wireless lighting control. It provides
(b) Capital Investment on Energy Conservation lighting in sync with human Circadian rhythm.
Equipment Human Centric Lighting promises to increase
productivity and create relaxing work environment
Nil for users by mimicking sunlight indoors. Targeting
B. TECHNOLOGY ABSORPTION: office lighting applications where artificial lighting
The technology focus for the Company has been on is used during day.
process improvement for better quality, lower cost, 15. R&D having state-of-the-art capabilities in Optics
new product development and import substitution. design, CFD, FEA with in-house testing LAB
recognised by DSIR-Ministry of Science and
Some of the areas of technology focus and initiatives Technology.
have been:
1. Establishment of R&D for electrical motor C. IMPORTED TECHNOLOGY: NIL
technologies like BLDC, PMSM, SRM to take care
of future needs. D. EXPENDITURE ON R&D:
R&D expenditure for the year was: ` 23.04 crore
2. Improvements in induction motor technologies
for cost and quality engineering with new ideas in E. FOREIGN EXCHANGE EARNINGS AND
winding and slots of stampings. OUTGO:
3. Initiatives for process improvement through PDM Foreign exchange earned : ` 62.61 crore
solutions. Foreign exchange used : ` 195.59 crore

4. Expansion of portfolio in the automation space

using various sensors. For and on behalf of the Board of Directors
5. Connected Air Cooler & Water Heater and
Introduction of Smart Plug in the loT space.
H.M. Nerurkar
6. Introduction of new PP Polymer material in Air Place : Mumbai Chairman
cooler category to suit challenging operating Date : 24th June, 2021 DIN: 00265887

Annual Report 2020-21 67

ANNEXURE 4
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
FOR THE FINANCIAL YEAR 2020-21
[Pursuant to Section 135 of the Companies Act, 2013 read with Companies
(Corporate Social Responsibility Policy) Rules, 2014, as amended.]

1. Brief outline on CSR Policy of the Company:

Your Company’s CSR strategy framework is based on the principles of ‘Responsible Business’ and ‘Shared Value’. The
CSR programme framework is both in line with the Company’s long-term commitment to building positive value for the
communities (including key stakeholders) as well as addresses key developmental priorities as identified by Schedule
VII to the Companies Act, 2013.

2. Composition of the CSR Committee:

The CSR Committee of the Board is responsible for overseeing the execution of the Company’s CSR Policy. The CSR
committee comprises three Independent Directors, two Non-Executive Directors and the Managing Director as at
31st March, 2021.

Sr. Name of Director Designation/Nature of Number of Number of

No. Directorship meetings of CSR meetings of
Committee held CSR Committee
during the year attended during
the year
1 Mr. Shantanu Khosla (DIN: 00059877) Managing Director, Chairman of 3 3
CSR Committee
2 Mr. H. M. Nerurkar (DIN: 00265887) Chairman of the Board, Member 3 2
of CSR Committee
3 Mr. D. Sundaram (DIN: 00016304) Independent Director, Member of 3 3
CSR Committee
4 Ms. Smita Anand (DIN: 00059228) Independent Director, Member of 3 3
CSR Committee
5 Ms. Shweta Jalan (DIN: 00291675) Non-Executive Director, Member 3 3
of CSR Committee
6 Mr. Promeet Ghosh (DIN: 05307658) Non-Executive Director, Member 3 3
of CSR Committee

3. Web-link where composition of CSR Committee, CSR Policy and CSR projects approved by the Board
are disclosed on the website of the Company.
• Composition of CSR committee:https://www.crompton.co.in/wp-content/uploads/2021/06/Board-committees-
composition-01-06-2021.pdf
• CSR Policy : https://www.crompton.co.in/wp-content/uploads/2021/03/Corporate-Social-Responsibility-Policy.pdf
• CSR Project : https://www.crompton.co.in/csr/

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of
rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the
report).
The Company had voluntarily conducted impact assessment in 2019-20 through independent agencies to screen
and evaluate the impact of selected CSR programmes. However in the year 2020-21 due to COVID-19 pandemic the
Company did not conduct any impact assessment. The Company takes cognizance of sub-rule (3) of Rule 8 of the
Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“CSR Amendment Rules”) and the same
shall be complied with, if applicable, in coming financial years.

68 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

5. Details of the amount available for set off in pursuance of sub-rule (3) of Rule 7 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial
year, if any - NIL
6. Average net profit of the Company as per Section 135(5): ` 549.37 crore
7. a) Two percent of average net profit of the Company as per Section 135(5) ` 10.99 Crore
b) Surplus arising out of the CSR projects or programmes or activities of the previous financial Nil
years
c) Amount required to be set off for the financial year Nil
d) Total CSR obligation for the financial year (7a+7b+7c) ` 10.99 Crore

8. a) CSR amount spent or unspent for the financial year:

Total Amount Spent for Total Amount transferred to Amount transferred to any fund specified
the Financial Year Unspent CSR Account as per under Schedule VII as per second proviso to
(in `) Section 135(6) Section 135(5)
Amount Date of transfer Name of fund Amount Date of transfer
` 10.99 crore Not Applicable Not Applicable

b) Details of CSR amount spent against ongoing projects for the financial year:
Name of the Item from Local Location of the project Project Amount Amount Amount Mode of Mode of Implementation -
Project the list of area duration allocated spent in transferred to Implementation Through Implementing Agency
activities in (Yes/ State District for the the current Unspent CSR - Direct (Yes/No) Name CSR
Schedule No) project financial Account for the Registration
VII to the (` in crore) year (` in project as per number
Act crore) Section 135(6)
(` in crore)
Skill (ii) Yes Himachal Solan 1 year 1.04 NIL NIL No ASMACS Skill Not applicable
development Pradesh Development
Skill (ii) Yes Maharashtra Ahmednagar 1 year 1.02 NIL No ASMACS Skill Not applicable
development Development
Skill (ii) Yes Gujarat Vadodara 1 year 1.16 NIL No ASMACS Skill Not applicable
development Development
Skill (ii) Yes Tamil Nadu Coimbatore 1 year 1.14 NIL No ASMACS Skill Not applicable
development Development
Skill (ii) Yes Assam Guwahati 1 year 1.13 NIL No ASMACS Skill Not applicable
development Development
Skill (ii) Yes Odisha Bhubaneshwar 1 year 1.08 NIL No ASMACS Skill Not applicable
development Development
Skill (ii) No Maharashtra Palghar 1 year 0.30 NIL No Kherwadi CSR00000920
development Social Welfare
Association
Skill (ii) Yes Telangana Hyderabad 1.5 years 0.89 NIL No Orion Edutech CSR00000597
development Private Limited

Skill (ii) No Sikkim Rangpo 1.5 years 0.73 NIL No Orion Edutech CSR00000597
development Private Limited
Skill (ii) No Dadra and Silvassa 1.5 years 0.73 NIL No Orion Edutech CSR00000597
development Nagar Haveli Private Limited
Midday meal (i) Yes Gujarat Vadodara 2 years 1.55 0.77 No Akshaya Patra CSR00000286
program Foundation
Vocational (ii) Yes Maharashtra Ahmednagar 1 year 1.07 0.32 No Dev Loka CSR00000371
skill training Eductional
program Trust
Vocational (ii) Yes Tamil Nadu Coimbatore 1 year 1.11 0.45 No Dev Loka CSR00000371
skill training Eductional
program Trust

Annual Report 2020-21 69

Name of the Item from Local Location of the project Project Amount Amount Amount Mode of Mode of Implementation -
Project the list of area duration allocated spent in transferred to Implementation Through Implementing Agency
activities in (Yes/ State District for the the current Unspent CSR - Direct (Yes/No) Name CSR
Schedule No) project financial Account for the Registration
VII to the (` in crore) year (` in project as per number
Act crore) Section 135(6)
(` in crore)
Watershed (iv) Yes Maharashtra Pune 5 months 0.65 NIL No BBKGSS CSR00000405
development
Watershed (iv) No Maharashtra Jalna 7 months 0.88 0.44 No Vanarai CSR00001205
development
Watershed (iv) Yes Maharashtra Ahmednagar 7 months 0.45 0.18 No Vanarai CSR00001205
development
Watershed (iv) Yes Maharashtra Ahmednagar 7 months 0.12 0.06 No Vanarai CSR00001205
development
Watershed (iv) Yes Maharashtra Ahmednagar 1 year 1.50 0.75 No Vanarai CSR00001205
development
Water Shed (iv) No Maharashtra Beed 1 year 0.61 0.12 No Watershed CSR00000518
development Organization
Trust
Watershed (iv) Yes Maharashtra Pune 1 year 0.99 0.34 No BBKGSS CSR00000405
development
Watershed (iv) Yes Maharashtra Ahmednagar 1.25 years 2.96 1.04 No BBKGSS CSR00000405
development
Mobile Milk (i) Yes Telangana Hyderabad 4 months 0.27 0.16 No Sushena CSR00005664
Bank Health
Foundation
Improving (i) No Maharashtra Raigad 1 month 0.14 0.14 No Crompton CSR CSR00001086
health Foundation
infrastructure
Improving (i) No Maharashtra Raigad 1 month 0.01 0.01 No Crompton CSR CSR00001086
health Foundation
infrastructure
Improving (i) Yes Gujarat Vadodara 2 months 0.30 0.15 No Crompton CSR CSR00001086
health Foundation
infrastructure
Supply of (i) Yes Maharashtra Mumbai 2 months 0.19 0.19 No Crompton CSR CSR00001086
medical Foundation
equipment
COVID-19 relief (i) Yes Goa Mapusa 2 months 0.31 0.15 No Crompton CSR CSR00001086
(support to Foundation
hospitals)
COVID-19 relief (i) Yes 8 months 0.12 0.06 No St. Judes CSR00001026
(support to Pan India
communities)
COVID-19 relief (i) Yes Maharashtra Ahmednagar 3 months 0.10 0.07 No Snehalaya CSR00001248
(support to
communities)
Supply of (i) Yes Maharashtra Mumbai one time 0.75 0.75 No Tata Memorial CSR00001287
medical Centre
equipment
The Company has fulfilled its CSR obligations and transferred the entire amount of ` 10.99 crore to different Implementing Agencies during Financial Year 2020-21. However, ` 2.10 crore which
was transferred to Crompton CSR Foundation is pending to be spent. In view of the same Crompton CSR Foundation has transferred this amount to an “Unspent CSR Account” and this amount
shall be spent in the upcoming years throughout the tenure of the approved project(s).

(1) These are ‘ongoing projects’ as defined in the CSR Amendment Rules.
(2) CSR registration will be obtained within the prescribed timeline, wherever applicable, as per the CSR Amendment Rules. The requirement does not
apply to CSR projects or programs approved prior to 1st April, 2021.

70 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

c. Details of CSR amount spent against other than ongoing projects for the financial year

Name of the Item from Local Location of the project Amount spent Mode of Mode of Implementation - Through
Project the list of area in the current Implementation - Implementing Agency
activities in (Yes/No) financial year Direct (Yes/No)
State District Name of the CSR
Schedule VII (` in crore)
agency registration
to the Act
number
Skill Development (ii) No Jharkhand Bundu 0.17 No PARFI CSR00000005
Program Odisha Sambalpur
Water conservation (iv) No Maharashtra Palghar 0.02 No Kherwadi Social CSR00000920
Welfare Association
Water conservation (iv) No Maharashtra Palghar 0.01 No Kherwadi Social CSR00000920
Welfare Association
Water conservation (iv) Yes Maharashtra Ahmednagar 0.00 No Star Pumps and Not applicable
Machinery
COVID-19 relief (i) Yes Maharashtra Mumbai 0.05 No Rotary Club of CSR00004479
(support to Bombay
communities)
Lifeskill Program (ii) Yes Maharashtra Mumbai 0.15 No CMCA CSR00000784
Karnataka Bangalore
COVID -19 relief (i) Yes Maharashtra Mumbai 0.10 No Ramesh Phirodia NA
(support to Educational Trust
hospitals)
COVID-19 relief (i) Yes Maharashtra Mumbai 0.50 No Crompton CSR CSR00001086
(support to Foundation
hospitals)
COVID-19 relief (i) Yes Maharashtra Mumbai, 0.66 No Crompton CSR CSR00001086
(support to No Osmanabad Foundation
hospitals)
COVID-19 relief (i) Yes Maharashtra Pune 0.24 No Crompton CSR CSR00001086
(support to Foundation
hospitals)
COVID-19 relief (i) Yes Maharashtra Pune 0.14 No Crompton CSR CSR00001086
(support to Foundation
hospitals)
COVID-19 relief (i) No Maharashtra Palghar 0.36 No Crompton CSR CSR00001086
(support to Foundation
hospitals)
COVID-19 relief (i) Yes Himachal Solan 0.02 No Crompton CSR CSR00001086
(support to Pradesh Foundation
hospitals)
COVID-19 relief (i) Yes Maharashtra Ahmednagar 0.04 No Snehalaya CSR00001248
(support to
communities)
COVID-19 relief CSR00001086
Himachal Crompton CSR
(support to (i) Yes Solan 0.01 No
Pradesh Foundation
communities)
COVID-19 relief (i) Yes Gujarat Vadodara 0.14 No Akshaya Patra CSR00000286
(support to Foundation
communities)

(1) CSR registration will be obtained within the prescribed timeline, wherever applicable, as per the CSR Amendment Rules. The requirement does not apply to
CSR projects or programs approved prior to 1st April, 2021.

Annual Report 2020-21 71

 d) Amount spent in Administrative Overheads : ` 0.15 crore
e) Amount spent on Impact Assessment, if applicable : Not applicable
f) Total amount spent for the Financial Year (8b+8c+8d+8e) : ` 10.99 crore
g) Excess amount for set off, if any -

(i) Two percent of average net profit of the Company as per Section 135(5) ` 10.99 crore
(ii) Total amount spent for the Financial Year ` 10.99 crore
(iii) Excess amount spent for the financial year [(ii)-(i)] Nil
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Nil
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil

9. (a) Details of Unspent CSR amount for the preceding three financial years: NIL
Preceding Amount transferred Amount spent Amount transferred to any fund Amount remaining
Financial to Unspent CSR in the reporting specified under Schedule VII as to be spent in
Year Account under Financial Year per Section 135(6), if any succeeding
Section 135 (6) (in `) Name of the Amount Date of financial years
(in `) Fund (in `) transfer (in `)
Not applicable

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s)

Project ID Name of Financial Year Project Total Amount Cumulative Status of

the Project in which the duration amount spent on the amount spent the project -
project was allocated for project in at the end Completed/
commenced the project the reporting of reporting Ongoing
(in `) Financial Financial
Year (in `) Year (in `)
Not applicable
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created
or acquired through CSR spent in the financial year:
None of the capital assets created or acquired through CSR spent during the year 2020-21 are in the name of the
Company.

Date of creation Amount of CSR Details of the entity or public Provide details of the capital
or acquisition spent for creation or authority or beneficiary under asset(s) created or acquired
of the capital acquisition of capital whose name such capital asset is (including complete address and
asset(s) asset (` in crore) registered, their address etc. location of the capital asset)
7th April, 2020 0.06 LNJP Hospital 1 Ventilator
Metro Station Central, Metro Station Central,
Jawaharlal Nehru Marg, near Delhi Jawaharlal Nehru Marg, near Delhi
Gate, LNJP Colony, Gate, LNJP Colony,
New Delhi - 110002 New Delhi - 110002
7th April, 2020 0.11 MR Bangur Hospital 2 Ventilator
241, Deshpran Sasmal Road, 241, Deshpran Sasmal Road,
Netajinagar, Rajendra Prasad Colony, Netajinagar, Rajendra Prasad
Tollygunge, Colony, Tollygunge,
Kolkata - 700033 Kolkata - 700033
7th April, 2020 0.06 Ramakrishna Mission Seva Pratishthan 1 Ventilator
99, Sarat Bose Road, Hazra, Kalighat, 99, Sarat Bose Road, Hazra, Kalighat,
Kolkata - 700026 Kolkata - 700026

72 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Date of creation Amount of CSR Details of the entity or public Provide details of the capital
or acquisition spent for creation or authority or beneficiary under asset(s) created or acquired
of the capital acquisition of capital whose name such capital asset is (including complete address and
asset(s) asset (` in crore) registered, their address etc. location of the capital asset)
8th June, 2020 0.50 Lokmanya Tilak Municipal Medical 30 ICU beds, 14 multipara monitors,
College and Lokmanya Tilak Municipal and 30 syringe pumps
General Hospital, Sion, Mumbai – 400 022
Sion, Mumbai – 400 022
19th November, 0.02 ESIC Katha 30 oxygen cylinders and
2020 Post & Village Katha, 10 pulse oximeters
opp. Gillette India Limited, Post & Village Katha,
Baddi - 173205 opp. Gillette India Limited,
Baddi - 173205
27th November, 0.36 Vasai Virar Mahanagar Palika 5 ventilators, 2 ABG machines,
2020 Shree Jivdani Devi Hospital, 10 multipara monitors and 5 HFNCs
Bhalchandra Nagar, Near RK Hotel, VVMC COVID Centre
Chandansar Naka, Virar East - 401305 Shree Jivdani Devi Hospital,
Bhalchandra Nagar,
Near RK Hotel, Chandansar Naka,
Virar East - 401305
27th November, 0.24 Bharathi Hospital, 6 ventilators, 3 servo humidifiers and
2020 Katraj- Dhankawadi, Pune – 411 043 50 pulse oximeters
Bharathi Hospital,
Katraj - Dhankawadi, Pune - 411 043
27th November, 0.14 Grant Medical Foundation 4 ventilators
2020 Ruby Hall Clinic, Ruby Hall Clinic,
40, Sasoon Rd, Sangamvadi, 40, Sasoon Rd, Sangamvadi,
Pune - 411001 Pune - 411001
2nd February, 0.19 Tata Memorial Hospital Platelet agitator
2021 Dr. Ernest Borges Road, Parel, Mumbai Tata Memorial Hospital,
– 400012 Dr. Ernest Borges Road, Parel,
Mumbai – 400012
2nd February, 0.75 Tata Memorial Hospital Ventilators, oxygen concentrators
2021 Dr. Ernest Borges Road, Parel, Mumbai and dialysis machines
– 400012 Tata Memorial Hospital,
Dr. Ernest Borges Road, Parel,
Mumbai – 400012
22nd February, 0.15 Crossroads Hospital, ICU on wheels and CR system
2021 Survey No. 247/248, Dabhasa, Crossroads Hospital, Survey No.
Padra - 391440 247/248, Dabhasa,
Padra - 391440
12th March, 2021 0.16 Sushena Health Foundation Mobile Van, breast pumps and deep
Plot no. 49, Paragati Nagar, freezers
Yousufguda, Amerpeet, Plot no. 49, Paragati Nagar,
Hyderabad - 500045 Yousufguda, Amerpeet,
Hyderabad - 500045

Annual Report 2020-21 73

Date of creation Amount of CSR Details of the entity or public Provide details of the capital
or acquisition spent for creation or authority or beneficiary under asset(s) created or acquired
of the capital acquisition of capital whose name such capital asset is (including complete address and
asset(s) asset (` in crore) registered, their address etc. location of the capital asset)
15th March, 2021 0.19 Yusuf Meherally Centre • Hospital Super Delux Hydraulic
Tara, Mumbai Goa Road Taluka Panvel, Operating Table
Karnala - 410221 • HAAG Streit Surgical
Ophthalmic Operating
Microscope
• Anaesthesia Apparatus Machine
• Multipara Monitor Model
• OT Light Reflector
• Fumigator
Yusuf Meherally Centre,
Tara, Mumbai Goa Road, Taluka
Panvel, Karnala - 410221
25th March, 2021 0.15 North District Hospital, Mapusa Supply of Online UPS and H1N1 test
Mapusa Jamatkhana Road, Peddem, kits
Mapusa, Goa - 403507 Mapusa Jamatkhana Road, Peddem,
Mapusa, Goa - 403507
30th March, 2021 0.01 Sub Divisional Magistrate Nalagarh, 15 Water Geysers
Solan, Himachal Pradesh COVID Care Centre, BBN Area
Sub Divisional Magistrate, Nalagarh,
Solan, Himachal Pradesh

11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per
section 135(5).

Not Applicable

For and on behalf of the Board of Directors

H. M. Nerurkar Shantanu Khosla

Chairman Managing Director & Chairman CSR Committee
DIN: 00265887 DIN: 00059877

Place : Mumbai
Date : 24th June, 2021

74 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ANNEXURE 5
SECRETARIAL AUDIT REPORT

FORM MR-3
For The Financial Year Ended 31st March, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, (iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
The Members,
Crompton Greaves Consumer Electricals Limited (iv) Foreign Exchange Management Act, 1999 and the
Tower 3, 1 Floor, East Wing, rules and regulations made thereunder to the extent of
Equinox Business Park, LBS Marg, Foreign Direct Investment, Overseas Direct Investment
Kurla (West), Mumbai – 400070 and External Commercial Borrowings;

We have conducted the secretarial audit of the compliance (v) The following Regulations and Guidelines prescribed
of applicable statutory provisions and the adherence to good under the Securities and Exchange Board of India Act,
corporate practices by Crompton Greaves Consumer 1992 (‘SEBI Act’):-
Electricals Limited (hereinafter called “the Company”).
Secretarial audit was conducted in a manner that provided (a) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
us a reasonable basis for evaluating the corporate conducts/
Regulations, 2011;
statutory compliance and expressing our opinion thereon.
(b) The Securities and Exchange Board of India
Based on our verification of the Company’s books, papers,
(Prohibition of Insider Trading) Regulations, 2015;
minute books, forms and returns filed and other records
maintained by the Company and also the information
(c) The Securities and Exchange Board of India
provided by the Company, its officers, agents and authorised
(Issue of Capital and Disclosure Requirements)
representatives during the conduct of secretarial audit, Regulations, 2018 (during the period under review
we hereby report that in our opinion, the Company has, not applicable to the Company);
during the audit period covering the financial year ended on
31st March, 2021, complied with the statutory provisions (d) The Securities and Exchange Board of India
listed hereunder and also that the Company has proper (Share Based Employee Benefits) Regulations,
Board processes and compliance mechanism in place to 2014;
the extent, in the manner and subject to the reporting made
hereinafter: (e) The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
We have examined the books, papers, minute books,
forms and returns filed and other records maintained by the (f) The Securities and Exchange Board of India
Company for the financial year ended on March 31, 2021 (Registrars to an Issue and Share Transfer Agents)
according to the provisions of: Regulations, 1993 regarding the Companies Act
and dealing with client (during the period under
(i) The Companies Act, 2013 (‘the Act’) and the rules review not applicable to the Company);
made thereunder;
(g) The Securities and Exchange Board of India
(ii) The Securities Contracts (Regulation) Act, 1956 (Delisting of Equity Shares) Regulations, 2009
(‘SCRA’) and the rules made thereunder; (during the period under review not applicable to
the Company); and

Annual Report 2020-21 75

 (h) The Securities and Exchange Board of India on the agenda items before the meeting and for meaningful
(Buyback of Securities) Regulations, 2018 (during participation at the meeting.
the period under review not applicable to the
Company). Majority decision is carried through while the dissenting
members’ views, if any, are captured and recorded as part
(vi) Bureau of Indian Standards of the Minutes.

The National Standards Body of India We further report that there are adequate systems and
processes in the Company commensurate with the size
(vii) Bureau of Energy Efficiency (Government of India, and operations of the Company to monitor and ensure
Ministry of Power). compliance with applicable laws, rules, regulations and
guidelines. The Company has filed all the necessary e-forms
We have also examined compliance with the applicable as required under the Companies Act, 2013 except two for
clauses of the following: which the Company has initiated the process of condonation.

a) Secretarial Standards issued by the Institute of We further report that during the audit period, the Company
Company Secretaries of India; had the following specific events/actions having a major
bearing on the Company’s affairs in pursuance of the above
b) Securities and Exchange Board of India (Listing referred laws, rules, regulations, guidelines, standards, etc.
Obligations and Disclosure Requirements)
Regulations, 2015. 1) Members of the Company via Postal Ballot dated
27th November, 2020, have approved the below
During the period under review, the Company has mentioned resolutions:
substantially complied with the provisions of Acts, Rules,
a) Amendment in Crompton Employee Stock Option
Regulations, Guidelines, Standards, etc. mentioned above.
Plan 2019 (‘ESOP 2019’);

We further report that: b) Increase in Authorised Share Capital of the

The Board of Directors of the Company is duly constituted Company from the present ` 130,00,00,000/-
with proper balance of the Executive Directors, Non- (Rupees One Hundred and Thirty Crore only)
Executive Directors and Independent Directors. The divided into ` 65,00,00,000 (Sixty-Five Crore)
changes in the composition of the Board of Directors that equity shares of face value of ` 2/- (Rupees Two
took place during the period under review were carried out only) each to ` 131,00,00,000/- (Rupees One
in compliance with the provisions of the Act. Hundred and Thirty-One Crore only) divided into
65,50,00,000 (Sixty-Five Crore and Fifty Lakh)
Adequate notice is given to all Directors to schedule the equity shares of face value of ` 2/- (Rupees Two
Board Meetings, agenda and detailed notes on agenda were only) each by creation of additional 50,00,000
sent at least seven days in advance, and a system exists for equity shares of face value of ` 2/- (Rupees Two
seeking and obtaining further information and clarifications only);

2) The Nomination & Remuneration Committee approved grant of stock options to the eligible employees as follows:

Sr. Scheme under which options were

Date of Grant of Options No. of Options granted
No. granted
1. 21st January, 2021 71,62,750 ESOP 2019

76 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

3) The Allotment Committee has passed the following resolutions for allotment of equity shares under the provisions of
various ESOP schemes of the Company as follows:

Sr.
Date of Passing Resolution No. of Shares allotted Name of the Plan
No.
1 16th September, 2020 49,963 ESOP 2016
2 09th November, 2020 28,125 ESOP 2016
3 16 December, 2020
th
26,866 ESOP 2016
4 04 January, 2021
th
21,070 ESOP 2016
5 18 January, 2021
th
27,000 ESOP 2016
6 29th January, 2021 1,00,000 PSP-1 2016
7 17 February, 2021
th
48,000 ESOP 2016
8 18 March, 2021
th
25,000 ESOP 2016
32,357 ESOP 2019
9 23rd March, 2021 49,000 ESOP 2016

4) The Board of Directors in the Board Meeting held on 22nd October, 2020, has declared interim dividend of ` 3.00 per
share of face value of ` 2/- each be paid out of the profits of the Company.

5) The Board of Directors at their meeting held on 07th May, 2020 has passed resolution for issuance of Secured, Rated,
Listed, Redeemable, Non-Convertible Debentures aggregating to ` 300 crores on private placement basis.

6) The Committee of Debenture of the Company on 29th May, 2020 has passed resolution for allotment of 7.25% 3,000
Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 10,00,000 each aggregating to ` 300 crores on
private placement basis by way of circulation.

Note: Due to lockdown under COVID-19, Certification on this Form MR-3 is done on the basis of documents made
available to us in electronic form by the Secretarial Team of the Company and such documents will be verified physically
after the lockdown is lifted.

For Mehta & Mehta

Company Secretaries
(ICSI Unique Code P1996MH007500)

Dipti Mehta
Partner
PCS No: 3667
CP No: 23905
UDIN: F003667C000354974
Place: Mumbai
Date : 21st May, 2021

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.

Annual Report 2020-21 77

ANNEXURE A
To,

The Members,
Crompton Greaves Consumer Electricals Limited
Tower 3, 1st Floor, East Wing,
Equinox Business Park, LBS Marg,
Kurla West, Mumbai – 400070

Our report of even date is to be read along with this letter.

1) Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.

2) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable basis
for our opinion.

3) We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4) Wherever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.

5) The compliance of the provisions of corporate laws, rules, regulations, standards is the responsibility of management.
Our examination was limited to the verification of procedures on test basis.

6) As regard the books, papers, forms, reports and returns filed by the Company under the provisions referred to in
points vi and vii of our Secretarial Audit Report in Form No. MR-3, the adherence and compliance to the requirements
of the said regulations is the responsibility of management. Our examination was limited to checking the execution
and timeliness of the filing of various forms, reports, returns and documents that need to be filed by the Company with
various authorities under the said regulations. We have not verified the correctness and coverage of the contents of such
forms, reports, returns and documents.

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 Mehta & Mehta

Company Secretaries
(ICSI Unique Code P1996MH007500)

Dipti Mehta
Partner
PCS No: 3667
CP No: 23905
UDIN: F003667C000354974
Place: Mumbai
Date: 21st May, 2021

78 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

ANNEXURE 6
Details pertaining to remuneration as required under Section 197(12) read with Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014

a. The ratio of the remuneration of each Director to the median remuneration of the employees of the
Company for 2020-21:
The median remuneration of employees of the Company during 2020-21 was ` 7,28,952/- and ratio of the remuneration of
each Director to the median remuneration of the employees of the Company for the financial year is provided in the table
below:

Ratio of Remuneration of
Remuneration of
Sr. each Director to Median
Name of Director Designation Director for 2020-21
No. Remuneration of employees
(`)
for 2020-21
1 Mr. Shantanu Khosla Managing Director# 5,18,81,200 71.17
(DIN: 00059877)
2 Mr. Mathew Job Executive Director & Chief 3,67,65,882 50.44
(DIN: 02922413) Executive Officer*
3 Mr. H. M. Nerurkar Chairman, Independent 31,50,000 4.32
(DIN: 00265887) Director^
4 Mr. D. Sundaram Independent Director^ 30,80,000 4.23
(DIN: 00016304)
5 Mr. P. M. Murty Independent Director^ 28,30,000 3.88
(DIN: 00011179)
6 Ms. Smita Anand Independent Director^ 23,30,000 3.20
(DIN: 00059228)
7 Ms. Shweta Jalan Non-Executive Director Nil N.A.
(DIN: 00291675)
8 Mr. Sahil Dalal Non-Executive Director Nil N.A.
(DIN: 07350808)
9 Mr. Promeet Ghosh Non-Executive Director Nil N.A.
(DIN 05307658)

The remuneration includes fixed pay and variable pay. Variable pay is for 2019-20 paid in 2020-21.
#The remuneration to MD is excluding ESOPs of INR 3,25,05,000.
^ The remuneration of Independent Directors consists of sitting fees and commission. Commission is for 2019-20 paid in 2020-21.

Annual Report 2020-21 79

b. T
 he percentage increase in remuneration of each Director, Chief Executive Officer (CEO), Chief
Financial Officer (CFO), Company Secretary or Manager, if any, in the financial year:
The percentage Increase/Decrease in remuneration of each Director, Chief Executive Officer (CEO), Chief Financial Officer
(CFO), Company Secretary or Manager, if any, in 2020-21 is provided in the table below:

Sr. % increase in
Name of Director/KMP Designation
No. Remuneration in 2020-21*
1 Mr. Shantanu Khosla Managing Director -35.73%**
2 Mr. Mathew Job Executive Director & Chief Executive Officer -35.61%
3 Mr. Sandeep Batra Chief Financial Officer -25.73%
4 Ms. Pragya Kaul Company Secretary & Compliance Officer -8.73%
Decrease in Remuneration % are due to decrease in Variable pay out for FY 2019-20 paid in FY 2020-2021.
*Calculation is excluding perquisite value on exercise of ESOP.
**During FY 2020-2021, increase in remuneration is 4.54% including the perquisite value of ` 3.25 crore
c. The percentage increase in the median remuneration of employees in the financial year:
In the financial year, there was an increase of 7% in the median remuneration of employees.

d. The number of permanent employees on the rolls of the Company:

There were 1,853 permanent employees on the rolls of the Company as on 31st March, 2021.

e. Average percentile increase already made in the salaries of employees other than the managerial
personnel in the last financial year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration:
Average percentile increase/decrease made in the salaries of employees other than the managerial personnel in the last
financial year i.e. 2020-21 was 9.83% whereas the increase/decrease in managerial remuneration for the financial year
2020-21 was -32.43% (Calculated as per Weighted Average).

Justification: Increase in remuneration of the Managing Director and Executive Director & Chief Executive Officer
decided based on the individual performance, inflation, prevailing industry trends and benchmarks However, in
2020-21, the variable pay (for 2019-20 paid in 2020-21) was significantly lower leading to reduction in total remuneration.

The remuneration of Independent Directors consists of commission and sitting fees. While deciding the remuneration,
various factors such as Director’s participation in Board and Committee Meetings during the year, other responsibilities
undertaken, such as Membership or Chairmanship of Committees etc., were taken into consideration.

f. Affirmation that the remuneration is as per the remuneration policy of the Company:
It is hereby affirmed that the remuneration paid is as per the Nomination and Remuneration Policy of the Company.

“Median” means the numerical value separating the higher half of a population from the lower half and the median of a
finite list of numbers may be found by arranging all the observations from lowest value to highest value and picking the
middle one.

If there is an even number of observations, the median shall be the average of the two middle values.

For and on behalf of the Board of Directors

H.M. Nerurkar
Place: Mumbai Chairman
Date: 24th June, 2021 DIN: 00265887

80 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Corporate Governance Report

1. T
 HE COMPANY’S (CROMPTON’S) PHILOSOPHY Executive Directors, of whom four are Independent
ON CORPORATE GOVERNANCE Directors.
Your Company’s commitment towards the adoption
of best corporate governance practices goes beyond At the 6th AGM of the Company held on 24th July,
compliance with the law and endeavours to embrace 2020, the members accorded their approval for
responsibility for corporate actions and the impact re-appointment of Mr. Shantanu Khosla as the Managing
of its initiatives on all stakeholders. Your Company Director of the Company for a period of 5 years with
continuously strives for the betterment of its corporate effect from 1st January, 2021 to 31st December, 2025
governance mechanisms to improve efficiency,
and Mr. P. M. Murty as an Independent Director for a
transparency and accountability of its operations.
second term with effect from 18th September, 2020 to
25th July, 2025, Mr. D. Sundaram as an Independent
A Report on compliance with the Corporate Governance
Director for a second term of five consecutive years with
provisions as prescribed under the Securities and
effect from 18th September, 2020 to 17th September,
Exchange Board of India (Listing Obligations and
2025 and Mr. H. M. Nerurkar as an Independent
Disclosure Requirements) Regulations, 2015 (“Listing
Regulations” or “LODR”) is given below: Director for a second term with effect from 25th January,
2021 to 20th October, 2023.
BOARD OF DIRECTORS
Mr. Mathew Job was appointed as an Additional
a. COMPOSITION:
Director designated as the Executive Director &
Your Company has formulated and adopted the Chief Executive Officer by the Board of Directors on
Nomination and Remuneration Policy to ensure that the 22nd January, 2021 and Members of the Company
composition of the Board is optimum, balanced and vide special resolution passed through postal ballot
diverse to benefit from fresh perspectives, new ideas on 2nd May, 2021 approved the appointment w.e.f.
and broad experience. As on the date of this Report, 22nd January, 2021 for a period of 5 years.
your Company has ten members collectively forming
part of Board of Directors. Mr. P. R. Ramesh was
CONFIRMATION AS REGARDS INDEPENDENCE
appointed as an Independent Director with effect from
OF INDEPENDENT DIRECTORS
21st May, 2021. The Chairman, Mr. H. M. Nerurkar is an
Independent Director. The Composition of the Board The Board confirms that based on the written
of your Company is in conformity with Regulation 17 of affirmations from each Independent Director, all
the Listing Regulations. Independent Directors fulfil the conditions specified
for independence as stipulated in the Regulation 16
Mr. Shantanu Khosla is the Managing Director. (1)(b) of SEBI (Listing Obligations and Disclosure
Mr. Mathew Job is the Executive Director & Chief Requirements) (Amendment), Regulations, 2018
Executive Officer of the Company. Mr. D. Sundaram, (“Listing Regulations) w.e.f. 1st October, 2018 and
Mr. P. M. Murty, Ms. Smita Anand and Mr. P. R. Ramesh are independent of the Management. Further, the
are Independent Directors in terms of Regulation 17 of Independent Directors have also registered their
SEBI (Listing Obligations & Disclosure Requirements) names in the Data bank maintained by the Indian
Regulations, 2015 and Companies Act, 2013 (“the Institute of Corporate Affairs as mandated in the
Act”). Companies (Appointment and Qualification of
Directors), Rules, 2014 as amended. They have
Ms. Shweta Jalan, Mr. Sahil Dalal and Mr. Promeet also given the online self-assessment proficiency
Ghosh are Non-Executive, Non-Independent Directors. test and cleared the same within the timelines as
prescribed by MCA, to whomever it was applicable.
Your Company has complied with the provision of
None of the Independent Directors have any other
having one Woman Independent Director in terms of
material pecuniary relationship or transaction with
LODR.
the Company, its Promoters, or Directors, or Senior
As on 31st March, 2021, the Board of your Company Management which, in their judgement, would affect
comprises two Executive Directors and seven Non- their independence.

Annual Report 2020-21 81

Table 1 gives the composition of the Board, and the number of outside Directorships held by each Director. None of
the Directors are related to each other.
TABLE 1
Composition of the Board of Directors as on 31st March, 2021
Other Board/Committee Memberships
Name Particulars Committee Committee
Directorships*
Memberships** Chairmanships**
Mr. H. M. Nerurkar Chairman, Independent Director 7 6 2
Mr. Shantanu Khosla Managing Director - - -
Mr. D. Sundaram Independent Director 4 5 3
Mr. P. M. Murty Independent Director 1 2 -
Ms. Smita Anand Independent Director - - -
Ms. Shweta Jalan Non-Executive Non-Independent 5 - -
Director
Mr. Sahil Dalal Non-Executive Non-Independent 1 2 -
Director
Mr. Promeet Ghosh Non-Executive Non-Independent 1 - -
Director
Mr. Mathew Job# Executive Director & Chief Executive - - -
Officer
*
Excludes private limited companies, foreign companies and companies registered under Section 8 of the Act and Government Bodies and
excludes directorship in CGCEL.
For the purpose of calculating the above, only Audit and Stakeholders’ Relationship and Share Transfer Committee in public limited companies,
**

whether listed or not, are considered – Regulation 26(1) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
#
Appointed w.e.f. 22nd January, 2021
Pursuant to requirements of Regulation 26 of the Listing Regulations, none of the Company’s Director is a member of more than 10 committees
or Chairman of more than 5 committees across all Public companies in which he is a Director
TABLE 2
List of Directorship Held in Other Listed Companies
Name Name of the other Listed Entity Category of Directorship
Mr. H. M. Nerurkar (i) Adani Enterprise Limited Independent Director
(ii) NCC Limited Independent Director
(iii) Igarashi Motors India Limited Non-Executive Director
(iv) DFM Foods Limited Independent Director
Mr. D. Sundaram (i) Infosys Limited Independent Director
(ii) GlaxoSmithkline Pharmaceuticals Limited Independent Director
(iii) ACC Limited Independent Director
Mr. Sahil Dalal (i) DFM Foods Limited Non-Executive Director

b. BOARD MEETINGS: Notes and Presentations, if any, is sent to the Directors

Board Procedure at least seven days before the date of the Board
Meeting(s) and the Committee Meeting(s) through a
The dates for the Board meetings for the next year are web-based solution. A soft copy of the said Agenda(s)
fixed in advance. Board meetings are communicated is uploaded on the Board Portal at least 7 days before
by giving appropriate notice to the Directors. the meeting which also acts as a document repository.
The Directors are also provided the facility of video-
A detailed Agenda, setting out the business to be conferencing to enable them to participate effectively
transacted at the Meeting(s), supported by detailed in the Meeting(s), as and when required.

82 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Inputs and feedback of the Board Members are taken The Board sets annual performance objectives,
and considered while preparing the agenda and oversees the actions and results of the management,
documents for the Board and Committee meetings. evaluates its own performance, the performance of
its Committees and individual Directors on an annual
To enable the Board to discharge its responsibilities basis and monitors the effectiveness of the Company’s
effectively and take informed decisions, the MD & the governance practices for enhancing the stakeholders’
Executive Director & CEO apprise the Board at every value.
Meeting of the overall performance of your Company,
followed by Presentation(s) by the others. A detailed The Company has established a framework for the
functional Report is also presented at the Board Meetings of the Board and its Committees which seeks
Meeting(s). to systematise the decision-making process at the
Meetings in an informed and efficient manner.
The Board also, inter alia, periodically reviews strategy
and business plans, annual operating and capital
Apart from Board Members and the Company
expenditure budget(s), investment and exposure
Secretary, the Board and Committee Meetings are also
limit(s), compliance report(s) of all laws applicable
attended by the Chief Executive Officer, Chief Financial
to your Company, as well as steps taken by your
Officer and wherever required by the Heads of various
Company to rectify instances of non-compliances,
Functions.
review of major legal issues, minutes of the Committees
of the Board and of Board Meetings of your Company’s The meetings are generally held at the Company’s
Subsidiary Companies, significant transactions and Registered & Corporate Office at Tower 3, 1st Floor,
arrangements entered into by the unlisted subsidiary East Wing, Equinox Business Park, LBS Marg, Kurla
companies, approval of quarterly/half-yearly/annual (West), Mumbai - 400 070. However, due to the ongoing
results, significant labour problems and their proposed lockdown because of COVID-19 pandemic and in
solutions, safety and risk management, transactions accordance with the statutory provisions, exemptions
pertaining to purchase/disposal of property(ies), and relaxations as provided by Ministry of Corporate
sale of investments, remuneration of Key Managerial Affairs, all the meetings in the financial year 2020-21
Personnel, major accounting provisions and write-offs, were held through video-conferencing.
corporate restructuring, details of any joint ventures or
collaboration agreement, material default in financial The Board has complete access to all Company-
obligations, if any, fatal or serious accidents, any related information, including that of employees. At
material effluent or pollution problems, transactions Board meetings, managers and representatives who
that involve substantial payment towards goodwill, can provide additional insights into the items being
brand equity or intellectual property, any issue that discussed are invited. Information is provided to the
involves possible public or product liability claims Board members on a continuous basis for their review,
of substantial nature, including judgement or order inputs and approval.
which may have passed strictures on the conduct of
your Company, quarterly details of foreign exchange The Board of your Company met at least once in every
exposures and the steps taken by Management to quarter and the gap between two Board Meetings did
limit the risks of adverse exchange rate movement and not exceed the period of one hundred and twenty days
information on recruitment of Senior Officers just below (120). There were eleven (11) Board Meetings held
the Board level. during 2020-21.

Annual Report 2020-21 83

 TABLE 3
Attendance Record of the Directors for the year 2020-21
Board Meetings Last AGM
Name
09.04.2020 24.04.2020 07.05.2020 15.05.2020 24.07.2020 22.10.2020 27.11.2020 03.12.2020 04.12.2020 22.01.2021 13.02.2021 22.03.2021 23.03.2021
* **
24.07.2020

Mr. H. M. Nerurkar Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00265887)

Mr. Shantanu Khosla Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00059877)

Mr. D. Sundaram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00016304)

Mr. P. M. Murty Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00011179)

Ms. Shweta Jalan Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00291675)

Mr. Sahil Dalal Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 07350808)

Mr. Promeet Ghosh Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 05307658)

Ms. Smita Anand Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
(DIN: 00059228)

Mr. Mathew Job# NA NA NA NA NA NA NA NA NA NA Yes Yes Yes NA

(DIN: 02922413)

*Board Meeting held on 3rd December, 2020 was adjourned to 4th December, 2020.
**Board Meeting held on 22nd March, 2021 was adjourned to 23rd March, 2021.
#
Appointed w.e.f. 22nd January, 2021 and he attended all the Board Meetings held previously as the Chief Executive Officer.

MEETING OF INDEPENDENT DIRECTORS: grievances, Prevention of Insider Trading Regulations,

During the year under review, a meeting of the Independent SEBI Listing Regulations, framework for Related-Party
Directors was held on 23rd October, 2020. All Independent Transactions, etc. Pursuant to Regulation 46 of the
Directors were present at the meeting to discuss risks, Listing Regulations, the details required are available on
performance of the Company, strategy, leadership and the the website of your Company at the web link at https://
performance of the Non-Independent Directors and the Board www.crompton.co.in/investors/corporate-governance/.
and Chairman and assess information flow from management
to the Board that is necessary for the Board to effectively and d. DIRECTORS’ REMUNERATION:
reasonably perform its duties.
A. Remuneration Policy
Your Company has a well-defined Policy for
c. FAMILIARISATION PROGRAMME:
Remuneration of the Directors, Key Managerial
All new Non-Executive Directors inducted to the Board Personnel and other Employees. This Policy is annexed
are introduced to the Company’s culture through to this Report.
an orientation programme. MD, CEO and senior
management provide an overview of operations and Nomination and Remuneration Committee (NRC) while
familiarise the new Non-Executive Directors with the deciding the basis for determining the compensation,
organisation structure, Board procedures, operations both fixed and variable to the Non-Executive Directors,
of the Company, etc. takes into consideration various factors such as
Directors’ participation in Board and Committee
Pursuant to Regulation 25(7) of the Listing Regulations, Meetings during the year, other responsibilities
the Company conducted various familiarisation undertaken, such as Membership or Chairmanship of
programmes for its Directors including review of Industry Committees, time spent in carrying out other duties,
Outlook at the Board Meetings, regulatory updates at role and functions as envisaged in Schedule IV of the
Board and Audit Committee Meetings, presentations Act and Listing Regulations and such other factors as
on Internal Control over Financial Reporting, CSR the NRC may deem fit.
Strategy, Statutory Compliance, EHS, HR, IT, investor

84 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

B. Non-Executive Independent Directors Compensation

The shareholders at the 2nd Annual General Meeting held on 11th August, 2016, approved payment of commission
to the Company’s Non-Executive Independent Directors, collectively, up to 1% of net profits, as permitted by the
Companies Act, 2013. The Board has formulated guidelines for payment of commission to the Non-Executive
Independent Directors. Additional commission is paid to the Chairman of the Board, the Chairman of the Audit
Committee and the Chairman of the Nomination and Remuneration Committee. The Non-Executive Non- Independent
Directors are not paid any remuneration.

C. Directors’ Remuneration
The annual remuneration package of Mr. Shantanu Khosla, Managing Director and Mr. Mathew Job, Executive Director
& Chief Executive Officer comprises a fixed salary component including a basket of allowances/reimbursements and a
Variable Pay component as approved by the Nomination and Remuneration Committee and the Board of Directors, from
time to time.
Mr. Shantanu Khosla was re-appointed as the Managing Director for a period of 5 years effective from 1st January 2021.
Mr. Mathew Job was appointed as Executive Director & Chief Executive Officer for a period of 5 years effective from
22nd January, 2021.
The details of the remuneration of Directors during financial year 2020-21 are given below in Table 4:

TABLE 4
(` in crore)
Name of Director Salary and Variable Perquisites ESOP Sitting Fees Commission *
Total
allowances Pay*
Executive Directors
Mr. Shantanu Khosla 3.64 1.54 0.01 3.25 - - 8.44
Mr. Mathew Job 2.58 1.09 0.01 - - - 3.68
Non-Executive Directors
Mr. H. M. Nerurkar - - - - 0.12 0.20 0.32
Mr. D. Sundaram - - - - 0.12 0.19 0.31
Mr. P. M. Murty - - - - 0.10 0.18 0.28
Ms. Smita Anand - - - - 0.08 0.15 0.23
Ms. Shweta Jalan - - - - - - -
Mr. Sahil Dalal - - - - - - -
Mr. Promeet Ghosh - - - - - - -
*Variable Pay and Commission is for the financial year 2019-20 paid in 2020-21.
Notes:-
a. Notice period is three (3) months;
b. Variable Pay is performance-linked and gets paid on the basis of actual performance parameters (including sales growth, profit
before tax (growth and as % to sales), cash from operations etc. and as may be fixed by the NRC and Board from time to time.
All other components are fixed;
c. Executive Directors are not entitled to severance pay, commission or sitting fees for Board and Committee Meeting;
d. Details of Employee Stock Options (“ESOP”) granted, vesting criteria etc. are given in table below:-

Particulars Crompton Employees Stock Options Plans

Mr. Shantanu Khosla, Mr. Mathew Job,
Managing Director Executive Director &
Chief Executive Officer
Schemes PSP 1 PSP 2 ESOP 2019 PSP 1 ESOP 2019
No. of options 47,00,596 31,33,731 20,13,875 47,00,596 15,10,406
granted

Annual Report 2020-21 85

 Particulars Crompton Employees Stock Options Plans
Mr. Shantanu Khosla, Mr. Mathew Job,
Managing Director Executive Director &
Chief Executive Officer
Effective date of 25 October,
th
25 October,
th
21 January,
st
25 October,
th
21st January,
grant 2016 2016 2021 2016 2021
Options Vested 46,19,088 30,79,392 - 46,19,088 -
Options Unvested - - 20,13,875 - 15,10,406
Options Cancelled 81,508 54,339 - 81,508 -
Vesting period Not earlier than Not earlier than Not earlier than Not earlier than Not earlier than
1 year and not 1 year and not 1 year and not 1 year and not 1 year and not
later than 10 later than 10 later than 5 later than 10 later than 5
years from the years from the years from the years from the years from the
date of grant of date of grant of date of grant of date of grant of date of grant of
Options Options Options Options Options
Vesting Conditions Time based and Time 20% each year Time 20% each
performance based and over a 5-year based and year over a
based performance period based performance 5-year period
based on performance based based on
performance
Exercise Period October 2017 to October 2017 January 2022 October 2017 January 2022
November 2025 to November to January to November to January
2025 2031 2025 2031
Exercise Price ` 92.83 ` 185.66 ` 405.95 ` 92.83 ` 405.95
e. CODE OF CONDUCT: Mr. P. M. Murty holds 13 shares of the Company. No
other Non-Executive Director holds any shares in the
Your Company has a Code of Conduct for Directors
Company.
and senior management that reflects its high
standards of integrity and ethics. The Directors g. COMMITTEES OF THE BOARD:
and senior management of the Company have
affirmed their adherence to this Code of Conduct for 1. AUDIT COMMITTEE:
2020-21. As required by Regulation 34 of the Securities The Audit Committee acts as a link between the statutory
and Exchange Board of India (Listing Obligations and internal auditors and the Board of Directors. It
and Disclosure Requirements) Regulations 2015, assists the Board in fulfilling its oversight responsibilities
Mr. Mathew Job as the Executive Director and Chief of monitoring financial reporting processes, reviewing
Executive Officer has signed a declaration, stating the Company’s established systems and processes
that the Board of Directors and senior management for internal financial controls, governance and
personnel of the Company have affirmed compliance reviewing the Company’s statutory and internal audit
with this Code of Conduct, which is annexed to this activities. Majority of the Members on the Committee,
Report. The Code of Conduct also includes Code for including the Chairman are Independent Directors. The
Independent Directors which is a guide to professional Committee is governed by a Charter that is in line with
conduct for Independent Directors pursuant to Section the regulatory requirements mandated by the Act and
149(8) and Schedule IV of the Companies Act, 2013. SEBI Regulations.

This Code is available on the Company’s website https:// The Audit Committee also receives the report on
www.crompton.co.in/wp-content/uploads/2020/05/ compliance under the Code of Conduct for Prohibition of
Crompton-Code-of-Conduct.pdf. Insider Trading Regulations, 2015. Further Compliance
Reports under the Sexual Harassment of Women at
f. DIRECTORS’ SHAREHOLDING: Workplace (Prevention, Prohibition and Redressal) Act,
As on 31st March, 2021 Mr. H. M. Nerurkar holds 2013 and Whistle Blower Policy are also placed before
397 shares. Mr. Mathew Job holds 793 shares and
the Committee.

86 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

The Audit Committee also meets the Internal Auditors • Examination of the financial statement and the
and Statutory Auditors without the presence of the auditors’ report thereon;
management. The Audit Committee monitored and
• Approval or any subsequent modification of
reviewed the investigations of the whistle blower
transactions of the Company with related parties;
complaints received during the year.
• Scrutiny of inter-corporate loans and investments;
Meetings of the Audit Committee are also attended
by Chief Executive Officer, Chief Financial Officer, • Valuation of undertakings or assets of the
Company Secretary, Vice President of Finance, Head Company, wherever necessary;
Audit - Risk & Control, Internal Auditor and the Statutory
Auditor. The Company Secretary acts as the Secretary • Evaluation of internal financial controls and risk
of the Audit Committee. management systems;

The Board of Directors has appointed M/s Grant • Monitoring the end use of funds raised through
Thornton India LLP as Internal Auditors to conduct the public offers and related matters;
internal audit of the various areas of operations and • Carrying out any other function contained in
records of the Company. The periodical reports of the Listing Agreement/Listing Regulations, as
the said internal auditors are regularly placed before amended from time to time; and
the Audit Committee along with the comments of
the management on the action taken to correct any • To perform such other functions as may be
observed deficiencies on the working of the various necessary under any statutory or other regulatory
departments. requirements to be performed by the Committee
and as delegated by the Board from time to time.
The Cost Auditor of the Company also attended the
Committee Meeting in which the Cost Audit Report was As on 31st March, 2021, the total strength of the Audit
considered. Committee is 4 members out of which, 3 members
fall under the Independent Category. The regulations
Terms of reference of Audit Committee are:
require 2/3rd of the members to be Independent
• Recommendation for appointment, remuneration Directors and the Company has complied with the
and terms of appointment of auditors of the same. During the year, there were no changes in the
Company; composition of Audit Committee.
• Review and monitor the auditor’s independence There were six (6) Audit Committee Meetings held
and performance, and effectiveness of the audit during 2020-21.
process;

Table 5 given below gives the attendance record of the Members of the Audit Committee:

TABLE 5
Audit Committee Meetings
Name Designation 15.05.2020 23.07.2020 24.07.2020* 22.09.2020 21.10.2020 22.10.2020** 21.01.2021 22.01.2021# 08.03.2021
Mr. D. Sundaram Chairman Yes Yes Yes Yes Yes Yes Yes Yes Yes
Mr. P. M. Murty Member Yes Yes Yes Yes Yes Yes Yes Yes Yes
Mr. H. M. Nerurkar Member Yes Yes Yes Yes Yes Yes Yes Yes Yes
Ms. Shweta Jalan Member Yes Yes Yes Yes Yes Yes Yes Yes Yes
Notes:
*Audit Committee Meeting held on 23rd July, 2020 was adjourned to 24th July, 2020
**Audit Committee Meeting held on 21st October, 2020 was adjourned to 22nd October, 2020
#
Audit Committee Meeting held on 21st January, 2021 was adjourned to 22nd January, 2021

Annual Report 2020-21 87

2. 
NOMINATION AND REMUNERATION • Carrying out any other function contained in
COMMITTEE (NRC): the Listing Agreement/Listing Regulations, as
The Committee is responsible for formulating amended from time to time; and
evaluation policies and reviewing all major aspects • To perform such other functions as may
of Company’s HR processes relating to hiring, be necessary under any statutory or other
training, talent management, succession planning regulatory requirements to be performed by the
and compensation structure of the Directors, Committee and as delegated by the Board from
KMPs and Senior Management. The Committee time to time.
also anchored the performance evaluation of the
The total strength of the NRC is 6 members which are
Individual Directors.
Non-Executive Directors of the Company out of which,
Terms of reference of Nomination and 4 members fall under the Independent Category. The
Remuneration Committee are: regulations require at least 50% of the members to be
Independent Directors and the Company has complied
• Determine the criteria for appointment with the same. During the year, there were no changes
including qualifications, positive attributes and in the composition of NRC.
independence of Director;
There were six (6) Nomination and Remuneration
• Identify candidates who are qualified to become Committee Meetings held during 2019-21. The
Directors and who may be appointed in senior Managing Director, Chief Executive Officer, Chief
management and recommend to the Board their Financial Officer and Company Secretary also
appointment and removal; attended the meetings.
• Recommend to the Board policy concerning the The Vice President of Human Resources also attends
remuneration for the Directors, Key Managerial the meetings wherever required for discussion of
Personnel and other employees certain items.

• Evaluate the performance of each Director and The Company Secretary of the Company acts as the
performance of the Board as a whole; Secretary of the Committee.

Table 6 given below gives the attendance record of the Members of the Nomination and Remuneration Committee:

TABLE 6
Nomination and Remuneration Committee Meetings
Name Designation 15.05.2020 02.06.2020 17.08.2020 22.10.2020 27.11.2020 21.01.2021 22.01.2021*
Mr. P. M. Murty Chairman Yes Yes Yes Yes Yes Yes Yes
Mr. D. Sundaram Member Yes Yes Yes Yes Yes Yes Yes
Mr. H. M. Nerurkar Member Yes Yes Yes Yes Yes Yes Yes
Ms. Shweta Jalan Member Yes Yes Yes Yes Yes Yes Yes
Mr. Promeet Ghosh Member Yes Yes Yes Yes Yes No Yes
Ms. Smita Anand Member Yes Yes Yes Yes Yes Yes Yes
*Nomination & Remuneration Committee Meeting held on 21st January, 2021 was adjourned to 22nd January, 2021.

3. CORPORATE SOCIAL RESPONSIBILITY (CSR) • To review and recommend the amount of

COMMITTEE: expenditure to be incurred on the activities to
be undertaken by the Company under the CSR
Corporate Social Responsibility Policy (CSR) policy of
Policy;
the Company was amended by the Board of Directors
in their meeting held on 23rd March, 2021. • To monitor the CSR policy of the Company from
time to time;
The Company Secretary of the Company acts as the
Secretary of the Committee. • Adhere to the applicable provisions of the
Companies Act, 2013 and the Rules made
Terms of reference of CSR Committee are:
thereunder (including any statutory modifications,
• To formulate and recommend to the Board, a
amendments or re-enactments thereto for the time
CSR policy which shall indicate the activities to be
being in force);
undertaken by the Company as per the Act;

88 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

• Carrying out any other function contained in the Listing Agreement/Listing Regulations, as amended from time to
time; and
• To perform such other functions as may be necessary under any statutory or other regulatory requirements to be
performed by the Committee and as delegated by the Board from time to time.
The total strength of the CSR Committee is 6 members. During the year, there were no changes in the composition of
CSR committee.
There were three (3) Corporate Social Responsibility Committee Meetings held during financial year 2020-21.
The Managing Director, Executive Director & Chief Executive Officer, Chief Financial Officer and Company Secretary
also attended the meeting(s).
The Company Secretary of the Company acts as the Secretary of the Committee.
Table 7 given below gives the attendance record of the Members of the Corporate Social Responsibility Committee

TABLE 7
Corporate Social Responsibility Committee Meetings
Name Designation 15.05.2020 21.10.2020 22.03.2021
Mr. Shantanu Khosla Chairman Yes Yes Yes
Mr. H. M. Nerurkar Member Yes No Yes
Mr. D. Sundaram Member Yes Yes Yes
Ms. Shweta Jalan Member Yes Yes Yes
Mr. Promeet Ghosh Member Yes Yes Yes
Ms. Smita Anand Member Yes Yes Yes

4. 
STAKEHOLDERS’ RELATIONSHIP AND Communications sent to shareholders
SHARE TRANSFER COMMITTEE: In the month of March 2021, your Company had sent
Terms of reference for Stakeholders’ Relationship and following communications to its shareholders:
Share Transfer Committee are:
No. of
Purpose Shareholders
• Resolving the grievances of security holders of
the Company including Investors’ complaints; Claim shares lying in the 4,036
Unclaimed Demat Suspense
• Approval of transfer or transmission of shares,
Account
debentures or any other securities;
Shareholders holding shares in 4,580
• Issue of duplicate certificates and new certificates physical form to
on split/consolidation/renewal etc.; • Convert shares into demat
• Redress the complaints regarding non-receipt • Update details - PAN, Bank,
of declared dividends, balance sheets of the Email, Address
Company, etc.; • Encash unclaimed dividend(s)
• Carrying out any other function contained in Shareholders whose share 1,619
the Listing Agreement/Listing Regulations, as certificates were returned
amended from time to time; and undelivered to:
• Update details - PAN, Bank,
• To perform such other functions as may be Email, Address
necessary under any statutory or other
regulatory requirements to be performed by the • Claim share certificates
Committee and as delegated by the Board from • Convert shares into demat
time to time.
• Encash unclaimed dividend(s)
The Company Secretary of the Company acts as the Shareholders holding shares 5,897
Secretary of the Committee. in demat form but dividends
are unpaid/unclaimed to claim
The status of investor grievance redressal is updated dividend
to the Committee and the Board periodically. Total 16,132

Annual Report 2020-21 89

 Stakeholders’ Relationship and Share Transfer Table 8 given below gives the attendance record
Committee report for the year ended 31st March, of the Members of the Stakeholders’ Relationship
2021 and Share Transfer Committee:
Activities of the Committee during Frequency
TABLE 8
the year
Stakeholders’ Relationship & Share Transfer
Monitored and reviewed the Periodically Committee Meetings
Company’s performance in dealing
with stakeholder grievances Name Designation 21.10.2020 08.03.2021
Reviewed various measures and Periodically Mr. H. M. Chairman Yes Yes
initiatives taken for reducing the Nerurkar
quantum of unclaimed dividends and Mr. D. Member Yes Yes
Sundaram
ensuring timely receipt of dividend
Mr. Shantanu Member Yes Yes
warrants/annual reports/notices by the
Khosla
shareholders of the Company
Mr. Sahil Dalal Member Yes Yes
Reviewed the annual audit report Annually
submitted by the independent
During the year, 14 complaints were received
auditors on the annual internal audit from the shareholders, all of which have been
conducted on the RTA operations attended/resolved to the satisfaction of the
as mandated by SEBI including the Shareholders.
mechanism of investor grievance
redressal, compliances stipulated by The details of the complaints are:
SEBI and other matters concerning the Sr. No. of
Complaints Received
functioning of the RTA No. Complaints
Periodically provided updates to the Periodically 1. Non-receipt of Annual Report 0
Board 2. Non-receipt of Securities 0
Reviewed the measures taken for Periodically 3. Non-receipt of Dividend 3
effective exercise of voting rights by Warrants
shareholders 4. Escalation to SEBI 7
Reviewed the adherence to the service Periodically 5. Escalation to Stock Exchange 4
standards and security assessment Total 14
adopted in respect of various services
being rendered by the Registrar & 5. RISK MANAGEMENT COMMITTEE:
Share Transfer Agent As per SEBI LODR (Amendment) Regulations, 2018,
The Committee undertook an annual Annually Risk Management Committee was constituted on 25th
performance evaluation of its own October, 2018 to monitor and review risk management
plans of the Company including cyber security.
effectiveness
The terms of reference of Risk Management Committee
• There were two (2) Stakeholders’ Relationship are to assist the Board in fulfilling its corporate
and Share Transfer Committee Meetings held governance oversight responsibilities with regard to
during the financial year 2020-21. Mr. H. M. the identification, evaluation and mitigation of risks
Nerurkar, a Non-Executive Independent Director including risks related to cyber security.
of the Company is heading the Stakeholders’ The Committee has the overall responsibility for
Relationship and Share Transfer Committee. monitoring and approving the risk management
framework and associated practices of the Company.
• For any grievances/complaints, shareholders
The Risk Management Committee is also responsible
may contact the RTA, KFin Technologies Private for reviewing and approving risk disclosure statements
Limited. For any escalations, shareholders may in any public documents or disclosures.
write to the Company Secretary & Compliance
Officer at crompton.investorrelations@crompton. There were two (2) Risk Management Committee
co.in. Meetings held during financial year 2020-21.

90 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

The Company Secretary of the Company acts as the of Directors on such strategic investment/disinvestment
Secretary of the Committee. opportunities.

Table 9 given below gives the attendance record of Table 10 given below gives the details of the
the Members of the Risk Management Committee: Members of the Strategic Investment Committee:

TABLE 9 TABLE 10
Risk Management Committee Meetings Strategic Investment Committee

Name Designation 22.09.2020 08.03.2021 Designation

Mr. D. Chairman Yes Yes Mr. H. M. Nerurkar Chairman

Sundaram Mr. D. Sundaram Member
Mr. H. M. Member Yes Yes Mr. P. M. Murty Member
Nerurkar
Mr. Shantanu Khosla Member
Mr. P. M. Murty Member Yes Yes
Ms. Smita Anand* Member
Ms. Shweta Member Yes Yes
Mr. Mathew Job* Member
Jalan
*Appointed as Member w.e.f. 13 February, 2021.
th

6. ALLOTMENT COMMITTEE:
The Allotment Committee for Allotment of Shares 9. ESG Committee:
arising out of the exercise of stock options by Eligible The Environment, Social and Governance (ESG)
Employees under ESOP Schemes of the Company was Committee was constituted on 21st May, 2021 with the
constituted by the Board of Directors of the Company objective of supporting its ongoing commitment to
on 26th October, 2017. environment, health and safety, social responsibility,
governance, and sustainability matters.
The members of Allotment Committee are Mr. H. M.
Nerurkar (Independent Director) and Mr. P. M. Murty The ESG Committee will assist the Senior Leadership
(Independent Director). Team of the Company in –

During the year, the Allotment Committee has approved (a) setting general strategy relating to ESG Matters,
allotment of 4,07,381 shares arising out of the exercise
(b) developing, implementing, and monitoring
of stock options by Eligible Employees.
initiatives and policies based on that strategy,
The Company Secretary of the Company acts as the
Secretary of the Committee. (c) overseeing communications with employees,
investors and stakeholders with respect to ESG
7. COMMITTEE OF DEBENTURES: Matters,
The Committee for Debentures was constituted (d) monitoring and assessing developments relating
on 18th May, 2016 for allotment and issue of Non- to, and improving the Company’s understanding
Convertible Debentures and for approval of matters of ESG Matters, and
connected thereto.
(e) efficient and timely disclosure of ESG matters to
The members of Committee of Debentures are internal and external stakeholders.
Mr. Shantanu Khosla (Managing Director) and Mr. D.
Sundaram (Independent Director). TABLE 11
Table 11 given below gives the details of the Members
During the year, the Committee of Debentures
of the Environment, Social and Governance (ESG)
approved allotment of 3,000 Rated, Secured, Listed,
Committee:
Redeemable Non-Convertible Debentures of a face
value of ` 10,00,000 each aggregating to ` 300 crore. Name Designation
8. STRATEGIC INVESTMENT COMMITTEE: Mr. Promeet Ghosh Chairman

The Strategic Investment Committee was constituted Mr. P. M. Murty Member

on 24th August, 2018 for evaluation and assessment Mr. Sahil Dalal Member
of Strategic Investment opportunities feasible for the
Mr. Mathew Job Member
Company and to make recommendations to the Board

Annual Report 2020-21 91

  ONFIRMATION BY THE BOARD OF DIRECTORS - ACCEPTANCE OF RECOMMENDATION OF
C
MANDATORY COMMITTEES
In terms of the amendments made to the SEBI Listing Regulations, the Board of Directors confirm that during the year,
it has accepted all recommendations received from its mandatory committees.

INSIDER TRADING
Your Company has issued comprehensive guidelines in accordance with the SEBI Regulations as amended, in this
regard, which advise and caution the Directors, dealing with the securities of the Company. The Insider Trading
Code framed by the Company helps in ensuring compliance with these requirements.

9. KEY BOARD SKILLS, EXPERTISE, COMPETENCE OF THE BOARD OF DIRECTORS

The Board comprises distinguished, qualified and experienced members who bring in the requisite skills, expertise and
competence that allows them to make a valuable contribution to the Board and its Committees.

Table 11 below summarises the key skills, expertise and competence required for the Company and is taken into
consideration while nominating candidates to serve on the Board.

TABLE 11
Skills Identified Definition
Experience and Industry experience through detailed knowledge of the Company or the sector in which it operates,
Industry Knowledge as well as those who understand the broader industry environment.
Financial Leadership of a financial firm or management of the finance function of an enterprise, resulting in
proficiency in complex financial management, capital allocation and financial reporting processes.
Gender, Nationality Representation of gender, geographic, cultural or other perspectives that expand the Board’s
or other Diversity understanding of the needs and viewpoints of customers, partners, employees, governments and
other stakeholders.
Leadership Extended leadership experience resulting in a practical understanding of organisations,
processes, strategic planning, and risk management.
Talent Development Experience in Leadership Development and ensuring an ongoing process exists which
continuously enhances the knowledge and capability of key talent to enable these managers to
effectively lead the organisation in achieving key strategic initiatives.
Mentoring Ability Demonstrated strengths in developing talent, succession planning, and driving change and long-
term growth.
Technology A significant background in technology, resulting in knowledge as to how to anticipate
technological trends, generate disruptive innovation and extend or create new business models.
Mergers and A history of leading growth through acquisitions and other business combinations, with the ability
Acquisitions to assess “make or buy” decisions, analyse the fit of a target with the Company’s strategy and
culture, accurately value transactions, and evaluate operational integration plans.
Board Service and Service on a public listed company board to develop insights about maintaining board and
Governance management accountability, protecting shareholder interests, and observing appropriate
governance practices.
Sales and Experience in developing strategies to grow sales and market share, build brand competitiveness,
Marketing awareness and equity, and build a strong Corporate reputation.
Compliance and Experience and background in regulatory affairs and regulatory policies, procedures and risk
Risk management.
In the table below, the key skills, expertise and competence of the Board of Directors in the context of the Company’s business
for effective functioning and as available with the Board have been highlighted.

92 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Mr. Mr. Ms. Ms. Mr. Mr.

Mr. H. M. Mr. D. Mr. Sahil
Name of Director Shantanu P. M. Smita Shweta Promeet Mathew
Nerurkar Sundaram Dalal
Khosla Murty Anand Jalan Ghosh Job
Experience and Industry √ √ √ √ √ √ √ √ √
Knowledge
Financial √ √ √ √ √ √ √ √
Gender, Nationality or √ √ √ √ √ √ √ √ √
other Diversity
Leadership √ √ √ √ √ √ √ √ √
Talent Development √ √ √ √ √ √ √ √ √
Mentoring Ability √ √ √ √ √ √ √ √ √
Technology √ √ √ √ √ √ √ √ √
Mergers and √ √ √ √ √ √ √ √ √
Acquisitions
Board Service and √ √ √ √ √ √ √ √ √
Governance
Sales & Marketing √ √ √ √ √
Compliance and √ √ √ √ √ √ √ √ √
Risk
The absence of a mark against a Board Member’s name does not necessarily mean the Director does not possess the
corresponding skill, expertise or competence.

INFORMATION ON GENERAL BODY MEETINGS:

The details of the Annual and Extra Ordinary General Meeting(s) held during the last three years are as follows:

TABLE 12
Information on General Body Meetings
No. of
Sr.
Event Date, Time & Venue Resolution Resolutions Purpose
No.
Passed
1. 4th Annual 25th July, 2018 at 3.00 p.m. Ordinary 4 1. Adoption of Financial Statements;
General at Patkar Hall, S.N.D.T. 2. Declaration of Dividend;
Meeting Women’s University,
3. Appointment of Ms. Shweta Jalan as
1, Nathibai Thackersey Road,
Director liable to retire by rotation; and
New Marine Lines,
Mumbai - 400 020 4. Ratification of the remuneration payable
to M/s Ashwin Solanki and Associates,
Cost Auditors of the Company.
2. 5th Annual 24th July, 2019 at 3.00 p.m. Ordinary 5 1. Adoption of Financial Statements;
General at Patkar Hall, S.N.D.T. 2. Declaration of Dividend;
Meeting Women’s University, 1,
3. Appointment of Mr. Sahil Dalal as
Nathibai Thackersey Road,
Director liable to retire by rotation;
New Marine Lines,
Mumbai – 400 020 4. Appointment of Ms. Smita Anand as an
Independent Director; and
5. Ratification of the remuneration payable
to M/s. Ashwin Solanki and Associates,
Cost Auditors of the Company.

Annual Report 2020-21 93

 No. of
Sr.
Event Date, Time & Venue Resolution Resolutions Purpose
No.
Passed
3. 6th Annual 24th July, 2020 at 3.00 p.m. Ordinary 3 1. Adoption of Financial Statements;
General through Video Conferencing 2. Appointment of Mr. Promeet Ghosh as
Meeting (“VC”)/Other Audio Visual Director liable to retire by rotation;
Means (“OAVM”)
3. Ratification of the remuneration payable
to M/s. Ashwin Solanki and Associates,
Cost Auditors of the Company;
Special 4 4. Re-appointment of Mr. Shantanu
Khosla (DIN:00059877) as the
Managing Director;
5. Re-appointment of Mr. P. M. Murty
(DIN:00011179) as an Independent
Director;
6. Re-appointment of Mr. D. Sundaram
(DIN:00016304) as an Independent
Director; and
7. Re-appointment of Mr. H. M. Nerurkar
(DIN: 00265887) as an Independent
Director.
No Special Resolution(s) were passed at the 4th and 5th Annual General Meeting.
4 Special Resolution(s) were passed at the 6th Annual General Meeting

POSTAL BALLOT:
During the year 2020-21, under Section 110 of the Companies Act, 2013 read with Companies Management and Administration
Rules, 2014, the Company passed the following Resolutions by postal ballot:

Postal Ballot No. 1

Date of Postal Ballot Notice: 27th November, 2020
Date of Declaration of Result: 8th January, 2021
Voting Period: 8th December, 2020 to 6th January, 2021
Date of Approval: 6th January, 2021

Votes cast in favour of the Votes cast against the

Sr. Invalid Votes
Resolution Resolution Resolution
No.
No. % No % No.
1. To approve the amendment in 45,07,39,433 97.47 1,16,77,267 2.53 5,905
Crompton Employee Stock Option
Plan 2019 (“ESOP 2019”) – Special
Resolution
2. To approve increase in Authorised 45,29,44,562 97.95 94,72,395 2.05 5,905
Share Capital of the Company –
Ordinary Resolution

Mrs. Ashwini Inamdar (FCS 9409), Practising Company Secretary was appointed as the scrutiniser for carrying out the Postal
ballot process in a fair and transparent manner.

94 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Postal Ballot No. 2

Date of Postal Ballot Notice: 23rd March, 2021
Date of Declaration of Result: 3rd May, 2021
Voting Period: 3rd April, 2021 to 2nd May, 2021
Date of Approval: 2nd May, 2021

Votes cast in favour of the Votes cast against the

Sr. Invalid Votes
Resolution Resolution Resolution
No.
No. % No % No.
1. To approve appointment of 46,52,76,771 99.56 20,35,689 0.44 NA
Mr. Mathew Job (DIN: 02922413) as
Director of the Company – Ordinary
Resolution
2. To approve appointment of 47,66,49,383 99.97 1,27,599 0.03 NA
Mr. Mathew Job (DIN: 02922413) as
Executive Director & Chief Executive
Officer of the Company for a period
of 5 (five) years w.e.f. 22nd January,
2021 to 21st January, 2026 – Special
Resolution

Makarand M. Joshi (FCS 5533), Practising Company Secretary was appointed as the scrutiniser for carrying out the Postal ballot
process in a fair and transparent manner.

No special resolutions are proposed to be conducted through postal ballot as covered under Section 110 of the Companies Act,
2013, at the ensuing 7th Annual General Meeting.

PROCEDURE FOR POSTAL BALLOT: were requested to vote before the close of business hours
on the last date of e-voting. The last date for receipt of Postal
For Postal Ballot No.1
ballot forms or E-voting was the date on which the resolution
In compliance with Sections 108 and 110 and other applicable would be deemed to have been passed if approved by the
provisions of the Companies Act, 2013 read with the related requisite majority.
rules, the Company provided electronic voting (e-voting)
facility, in addition to the physical ballot, to all its Members. Postal Ballot No. 2
For this purpose, the Company had engaged the services of In compliance with Sections 108 and 110 and other applicable
Central Depository Services (India) Limited. provisions of the Companies Act, 2013 read with the related
Postal ballot notices and forms were despatched, along with rules, General Circular Nos. 14/2020 and 17/2020 dated
postage - pre-paid business reply envelopes to Registered 8th April, 2020, 13th April, 2020 and General Circular No.
members/beneficiaries. The same notice was sent by email 39/2020 dated 31st December, 2020 (the “MCA Circulars”)
to members who had opted for receiving communication respectively issued by the Ministry of Corporate Affairs (MCA),
through the electronic mode. the Company provided electronic voting (e-voting) facility, to
all its Members. For this purpose, the Company had engaged
The Company had also published a notice in the newspaper the services of Central Depository Services (India) Limited.
for postal ballot declaring the details and requirements as
mandated by the Act and applicable rules post circulation of Further, pursuant to the relaxations provided by Ministry of
postal ballot notice to all the shareholders. Corporate Affairs dated 27th March, 2020 the Company had
also published a public notice in the newspaper for all the
Voting right was reckoned on the paid-up value of shares shareholders to update their email addresses and mobile
registered in the name of the member as on the cut-off date. numbers with the depositories prior to the circulation of postal
Members who wanted to exercise their votes by physical ballot notice.
postal ballot were requested to return the forms duly
completed and signed, to the scrutiniser on or before the The Notice of Postal Ballot was sent in electronic mode only
close of the voting period. Those using the e-voting option to all those Members who had registered their e-mail

Annual Report 2020-21 95

addresses with the Company or Depository Participant/ iii. The quarterly, half-yearly and yearly results (unaudited
Depository/KFin Technologies Private Limited. Further, the or audited, as the case may be) prepared in accordance
Members had the option to vote only through remote e-voting with the Companies (Indian Accounting Standards)
and voting through physical ballot papers was not provided.
Rules, 2015 (Ind-AS Rules) in the format prescribed
The Company had also published a notice in the newspaper under Regulation 33 of the Listing Regulations read
declaring the details and requirements for postal ballot as with Circular Ref No. CIR/CFD/FAC/62/2016 dated
mandated by the Act and applicable rules post circulation of 5th July, 2016 issued by SEBI are sent to the Stock
postal ballot notice to all the shareholders.
Exchanges where the shares of the Company are
Voting right was reckoned on the paid-up value of shares listed i.e. BSE Limited and National Stock Exchange
registered in the name of the member as on the cut-off date. of India Limited. The results are normally published
in “Financial Express” (English Daily) and “Loksatta”
The scrutiniser completed their scrutiny and submitted (Marathi Daily) within 48 hours of the conclusion of
the report to the Chairman/Managing Director, and the
the meeting of the Board in which they are approved.
consolidated results of the voting were announced by the
The results are displayed on the Company’s website
Chairman/Authorised Officer.
https://www.crompton.co.in/investors/newspaper-
The results were also displayed on the Company’s website publications/. Press Releases are also issued, which
www.crompton.co.in besides being communicated to the are also displayed on the Company’s website in a
Stock Exchanges, Depositories and Registrar and Share separate section.
Transfer Agent.
iv. The required disclosures were made to the Stock
MANAGEMENT DISCUSSION AND ANALYSIS
Exchanges and were uploaded on the website of the
REPORT
Company.
This is given as a separate Chapter in the Annual Report.

v. Any presentations made to the institutional investors

COMPLIANCE WITH MANDATORY REQUIREMENTS
or/and analysts are also posted on the Company’s
Your Company has complied with all the mandatory
website and also submitted to the stock exchanges
requirements of the Listing Regulations relating to Corporate
Governance as specified in regulation 17 to 27 and clauses were the securities of the Company are listed.
(b) to (i) of sub-regulation (2) of regulation 46 of SEBI (LODR)
Regulations. COMPLIANCE WITH NON-MANDATORY
PROVISIONS
MEANS OF COMMUNICATON: The status concerning compliance by your Company with
WEBSITE, NEWS & EVENTS discretionary requirements as listed out in Part E of Schedule
II of SEBI Listing Regulations is as under:
i. A separate dedicated section under ‘lnvestors’ at
www.crompton.co.in/investors/corporate-governance/
 The position of the Chairman of the Board of Directors
gives information on applicable policies including
and that of the Managing Director and the Chief
policy on dealing with related-party transactions which
Executive Officer are separate.
is at https://www.crompton.co.in/media/Policy-on-RPT-
CGCEL.pdf, along with news and events held during
 The audit report on the Company’s FinanciaI Statements
the year of the Company.
for the year ended 31st March, 2021 is unmodified.

ii. A separate dedicated section under ‘Investors’

 The Internal Auditors report directly to the Audit
section on the Company’s website at https:// Committee.
www.crompton.co.in/investors/corporate-governance/
gives information on policy for determining material  Your Company follows a robust process of
subsidiary at https://www.crompton.co.in/media/ communicating with the shareholders which have been
Policy-on-Material-Subsidiary.pdf. elaborated in the Report under the heading “Means of
Communication”.

96 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

GENERAL SHAREHOLDER INFORMATION form w.e.f. 1st April, 2019, except in case of request received
7th ANNUAL GENERAL MEETING for transmission or transposition of securities. All share
transfers and other share-related issues are approved by
Date & Day : Friday, 23rd July, 2021 Stakeholders’ Relationship and Share Transfer Committee
Time : 3:00 P.M. duly constituted for this purpose and processed by the
Venue : Through video conferencing/other audio- Registrar and Share Transfer Agent of the Company. Share
visual means (Deemed venue - Tower 3, transfer is normally affected within the maximum period of 15
1st Floor, East Wing, Equinox Business Park, days from the date of receipt, if all the required documentation
LBS Marg, Kurla (West), Mumbai 400070. is submitted. During 2020-21, one approval was obtained.
The total number of shares in physical form transferred during
FINANCIAL YEAR the year under review was 2,450 shares.
The financial year of the Company is from 1st April to
31st March. The one transfer case was lodged prior to 31st March, 2019
and was rejected under objections. The investor re-lodged
FINANCIAL CALENDAR the transfer request post 31st March, 2019 after necessary
rectifications and hence the request was processed in
First Quarter Results 2020-21.
End July/First fortnight of August
DEMATERIALISATION OF SHARES
Second Quarter Results
As on 31st March, 2021, 99.40% of the total shares of your
End October/First fortnight of November
Company representing 62,39,53,954 were in dematerialised
Third Quarter Results form, compared with 99.39% as on 31st March, 2020.
End January/First fortnight of February
STOCK CODES:
Last Quarter Results and Annual Audited Results
BSE Ltd. - 539876
April/May
Phiroze Jeejeebhoy Towers,
DATES OF BOOK CLOSURE AND DIVIDEND Dalal Street, Fort,
PAYMENT DATE: Mumbai – 400 001.
Record date shall be 9th July, 2021 and Book Closure for National Stock Exchange of India Ltd. - CROMPTON
Dividend will be from 10th July, 2021 to 23rd July, 2021 both Exchange Plaza, C-1, Block G,
days inclusive and the Dividend would be paid/despatched Bandra-Kurla Complex,
on or after 26th July, 2021 but within a period of 30 days from Bandra (East), Mumbai – 400 051.
the date of the Annual General Meeting. ISIN - INE299U01018 (NSDL & CDSL)
The Interim Dividend of ` 3/- per equity share was paid on Corporate Identification Number -
13th November, 2020. L31900MH2015PLC262254

SHARE TRANSFER SYSTEM Your Company has paid the Listing fees for both the Stock
In terms of Regulation 40(1) of SEBI Listing Regulations, as Exchanges for 2020-21 and 2021-22 for Equity Shares and to
amended, securities can be transferred only in dematerialised the National Stock Exchange of India Ltd. for NCDs.
PLANT LOCATIONS

Sr.
State City Address
No.
1. Goa Kundaim Plot No. 214-A, Kundaim Industrial Estate, Kundaim, Goa - 403 115, India
2. Goa Bethora Plot No. 1, Goa IDC Industrial Estate, Bethora, Panda, Goa - 403 409, India
3. Gujarat Vadodara Padra Jambusar Highway, Village Kural, Taluka Padra, District Vadodara,
Gujarat - 391430, India
4. Maharashtra Ahmednagar C-19, MIDC, Ahmednagar, Maharashtra - 414 111, India

Annual Report 2020-21 97

 Sr.
State City Address
No.
5. Maharashtra Ahmednagar A-28, MIDC, Ahmednagar, Maharashtra - 414 111, India
6. Himachal Baddi Baddi (Unit I) Plot No. 81, HPSIDC, Industrial Area Baddi, District Solan,
Pradesh Himachal Pradesh - 173 205, India
7. Himachal Baddi Baddi (Unit II) Plot No. 148,149,150,157, 158 and 159, HPSIDC, Industrial
Pradesh Area, Baddi, District Solan, Himachal Pradesh - 173 205, India
8. Himachal Baddi Baddi (Unit Ill) Village Thana, Tehsil Baddi, District Solan, Himachal Pradesh
Pradesh - 173 205, India

COMMODITY PRICE RISK OR FOREIGN EXCHANGE RISK AND HEDGING ACTIVITIES:

Your Company actively monitors the foreign exchange movements and takes forward/options covers as appropriate to reduce
the risks associated with transactions in foreign currencies.
Your Company also undertakes short-term commodity hedging activities to prevent future adverse price movement.

NON-CONVERTIBLE DEBENTURES (NCDs) AND CREDIT RATING

Your Company has NCDs amounting to ` 480 crore as on 31st March, 2021, which are listed on the National Stock Exchange.
The details of the Non-Convertible Debentures of the Company are as follows:

Particulars Series C Series A Series B

Date of Allotment 24 June, 2016
th
29 May, 2020
th
29 May, 2020
th

Repayment 5th Year 3rd Year 3rd Year

Embedded option, if any NA Call Option on Call Option on
expiry of 18th month expiry of 24th month
from the Date of from the Date of
Allotment Allotment
Year of Repayment 2021 2023 2023
Coupon Rate 8.95% 7.25% 7.25%
Face Value ` 10,00,000 per NCD
Rating at the time of issue CRISIL AA CRISIL AA+/Stable
Rating at the end of 31st March, 2017 CRISIL AA/Stable NA
Rating at the end of 31st March, 2018 CRISIL AA/Positive NA
Rating at the end of 31st March, 2019 CRISIL AA+/Stable NA
Rating at the end of 31st March, 2020 CRISIL AA+/Stable NA
Rating at the end of 31st March, 2021 CRISIL AA+/Stable CRISIL AA+/Stable
The debenture trustees of the Company are IDBI Trusteeship Services Limited. Their contact details are Asian Building, Ground
Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001.
Details of redemption
Series B Non-Convertible Debentures (NCDs), issued in June 2016, amounting to ` 170 crore were redeemed on 24th June,
2020.
Series C Non-Convertible Debentures (NCDs), issued in June 2016, amounting to ` 180 crore are due fo redemption on 24th
June, 2021.

CERTIFICATE FROM PRACTICING COMPANY SECRETARY

Certificate, as required under Part C of Schedule V of Listing Regulations, received from M/s. Pradeep Purwar & Associates,
Practicing Company Secretaries, confirming that none of the Directors on the Board of the Company have been debarred or
disqualified for the financial year ending on 31st March, 2021 from being appointed or continuing as Directors of the Company
by the Securities and Exchange Board of India/Ministry of Corporate Affairs or any such statutory authority was placed before
the Board of Directors at their meeting held on 21st May, 2021 and is enclosed with this Report as Annexure A.

98 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

STATUTORY AUDITOR AND AUDIT FEES

M/s. Sharp & Tannan are the Statutory Auditors of your Company. The details of the total fees for all services paid by the
Company to the Statutory Auditors are as follows:

(` in crore)
Type of Service Financial Year 2020-21* Financial Year 2019-20*
Audit Fees* 0.42 0.42
Tax Audit Fees 0.08 0.08
Others 0.34 0.40
Total 0.84 0.90
* Includes Audit and Audit-related services on a consolidated basis.
The Audit Fees paid to the auditors for the financial year ended 31st March, 2021 is covered separately in the Notes to Accounts.

DISCLOSURE UNDER SEXUAL HARASSMENT Telephone : 1800 309 4001

Your Company has constituted Internal Complaints
Committee (ICC) to consider and resolve all sexual Email : einward.ris@kfintech.com
harassment complaints. The constitution of ICC is as per the Website : www.kfintech.com
Sexual Harassment of Women at Workplace (Prevention,
Contact Person : Ms. Krishna Priya
Prohibition and Redressal) Act, 2013 and the Committee
includes an external member who is an independent POSH Designation : Senior Manager -
consultant with relevant experience. Corporate Registry

The details of sexual harassment complaints for the year SEBI Registration : INR000000221
ended 31st March, 2021 are furnished as under: For the benefit of shareholders, documents will continue
to be accepted at the Registered and Corporate Office of
No. of
Particulars the Company at: Crompton Greaves Consumer Electricals
Complaints
Limited.
Number of complaints filed during the 1
financial year CIN : L31900MH2015PLC262254
Number of complaints disposed of 1
Address : Tower 3, 1st Floor, East Wing, Equinox Business
during the financial year
Park, LBS Marg, Kurla (West), Mumbai - 400 070
Number of complaints pending as on Nil
the end of the financial year Telephone : +91 22-61678499
Fax : +91 22-61678383
REGISTRAR AND TRANSFER AGENT AND
Email : crompton.investorrelations@crompton.co.in
ADDRESS FOR CORRESPONDENCE
For any queries relating to the shares and debentures of the Website : www.crompton.co.in
Company, correspondence may please be addressed to
KFin Technologies Private Limited at: Shareholders are requested to quote their Folio No./DP ID &
Client ID, E-mail address, if any, telephone number and full
Selenium Tower B, Plot No. 31 & 32, Gachibowli, Financial address while corresponding with the Company and its RTA.
District, Nanakramguda, Serilingampally, Hyderabad -
500 032

Annual Report 2020-21 99

DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH, 2021
Sr.
Number of Shares held Number of Shareholders Number of Shares held % of Shareholding
No.
1 1 – 5000 1,18,949 2,99,76,326 4.78
2 5001 – 10000 1,095 76,89,289 1.22
3 10001 – 20000 466 64,82,736 1.03
4 20001 – 30000 148 36,41,346 0.58
5 30001 – 40000 59 20,58,676 0.33
6 40001 – 50000 38 17,26,666 0.28
7 50001 – 100000 119 87,14,963 1.39
8 100001 and above 367 56,74,01,351 90.39

TOTAL 1,21,241 62,76,91,353 100.00

CATEGORIES OF SHAREHOLDERS AS ON 31ST MARCH, 2021

Sr.
Category No. of Shares of ` 2 each % of Shareholding
No.
1 Promoter & Promoter Group (Foreign Bodies Corporate)* 7,13,02,579 11.36
2 Indian Financial Institutions 16,61,250 0.26
3 Bodies Corporate 1,19,49,560 1.90
4 Foreign Institutional Investors 2,33,297 0.04
5 Banks 1,11,304 0.02
6 Clearing Members 4,47,741 0.07
7 Foreign Nationals 808 0.00
8 Foreign Portfolio Investors 24,56,89,136 39.14
9 HUF 9,30,949 0.15
10 Mutual Funds 17,66,53,739 28.14
11 NBFC 1,38,313 0.02
12 Non-Resident Indians 12,97,411 0.21
13 Overseas Corporate Bodies 61,600 0.01
14 Resident Individuals 4,83,23,263 7.70
15 Trusts 46,087 0.01
16 Alternative Investment Fund 1,06,12,972 1.69
17 NRI Non-Repatriable 28,74,929 0.46
18 Beneficial Holdings under MGT-4 1,497 0.00
19 Qualified Institutional Buyer 5,53,54,918 8.82
TOTAL 62,76,91,353 100.00

Notes:
*MacRitchie is person acting in concert with Amalfiaco and Nirsinia Ltd. MacRitchie has entered into an Inter-se Agreement dated 23rd April,
2015 with Amalfiaco and Nirsinia (“Inter-se Agreement”). Pursuant to the said Agreement, MacRitchie does not have control rights and will not
be exercising control over your Company.

100 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

MARKET PRICE DATA

The details of monthly high/low market price of the Equity Shares of the Company at BSE Ltd. and at the National Stock
Exchange of India Ltd. for the year under review is provided hereunder :

BSE Ltd. National Stock Exchange of India Ltd.

High Low Total High Low Total
Month
Face Value Face Value Turnover Face Value Face Value Turnover
`2 `2 (` in crore) `2 `2 (` in crore)
April 2020 239.10 200.00 15.45 239.65 199.70 364.61
May 2020 227.90 196.40 19.97 227.90 196.55 384.16
June 2020 247.60 217.40 36.82 247.75 217.20 453.93
July 2020 256.00 234.50 12.01 254.95 234.30 471.87
August 2020 277.80 238.05 13.57 278.00 238.00 420.55
September 2020 295.00 248.85 12.36 295.00 249.00 574.04
October 2020 328.45 260.20 51.00 329.00 267.40 854.59
November 2020 316.45 285.95 83.16 316.60 285.70 2,572.51
December 2020 393.60 302.65 83.93 393.65 302.25 1,320.41
January 2021 455.60 368.85 57.61 456.00 367.05 1,354.40
February 2021 427.75 371.50 1,749.62 426.00 371.25 1,819.13
March 2021 420.55 358.45 72.61 421.25 358.05 1,414.53

STOCK PERFORMANCE VS S&P BSE 500 AND NSE NIFTY 500

The performance of your Company’s shares relative to the S&P BSE 500 index is given in the chart below:

Crompton on BSE S&P BSE 500

460 22000

420 20000

380 18000
BSE Closing Price (`)

SENSEX (Points)
340 16000

300 14000

260 12000

220 10000

180 8000
May-20

Jul-20

Jan-21
Apr-20

Jun-20

Nov-20

Dec-20
Oct-20
Aug-20

Sep-20

Mar-21
Feb-21

Annual Report 2020-21 101

The performance of your Company’s shares relative to the NSE Nifty 500 Index is given in the chart below:

Crompton on NSE NIFTY 500

460 13000

420 12000

380 11000
NSE Closing Price (`)

NIFTY (Points)
340 10000

300 9000

260 8000

220 7000

180 6000
May-20

Jul-20

Jan-21
Apr-20

Jun-20

Nov-20

Dec-20
Oct-20
Aug-20

Sep-20

Mar-21
Feb-21
BREAK-UP OF SHARES IN PHYSICAL AND DEMAT FORM AS ON 31ST MARCH, 2021

Description No. of Shareholders Shares % to Equity

Physical 6,181 37,37,399 0.60
NSDL 62,385 60,18,46,028 95.88
CDSL 52,675 2,21,07,926 3.52
TOTAL 1,21,241 62,76,91,353 100.00

OUTSTANDING GDRs/ADRs/WARRANTS/CONVERTIBLE INSTRUMENTS AS ON 31ST MARCH, 2021

Nil

DETAILS OF CAPITAL MARKET NON-COMPLIANCE, IF ANY

No penalties/strictures were imposed on your Company by the stock exchanges or SEBI or any statutory authority in any
matters related to the capital markets since incorporation.

UNCLAIMED SHARES
9,55,925 number of equity shares were lying in the unclaimed suspense account of CG Power and Industrial Solutions Limited
(erstwhile Crompton Greaves Limited) at the time of demerger. Pursuant to the Scheme of demerger, equivalent number of
equity shares were allotted on 22nd March, 2016. There were 9,26,646 number of equity shares lying in Unclaimed Suspense
Account as unclaimed shares as on 31st March, 2021.

102 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Disclosure in Respect of Equity Shares Transferred in the ‘Crompton Greaves Consumer Electricals Limited – Unclaimed
Suspense Account’ is as under:

Number of Number of Equity

Particulars
Shareholders Shares
Aggregate number of shareholders and the outstanding shares in the suspense 4,046 9,28,104
account lying as on 1st April, 2020
Number of shareholders who approached the Company for transfer of shares 10 1,458
from suspense account during the year
Number of shareholders to whom shares were transferred from suspense 10 1,458
account during the year
Aggregate number of shareholders and the outstanding shares in the suspense 4,036 9,26,646
account lying as on 31st March, 2021

The voting rights on these shares in the suspense account as on 31st March, 2021 shall remain frozen till the rightful owner of
such shares claims the shares.

In the month of March 2021, your Company had sent communication to such shareholders for claiming these shares lying in
Unclaimed Suspense Account.

DISCLOSURES ON MATERIALLY SIGNIFICANT RELATED-PARTY TRANSACTIONS THAT MAY HAVE

POTENTIAL CONFLICT WITH THE INTERESTS OF LISTED ENTITY AT LARGE
The details relating to materially significant related-party transactions that may have potential conflict with the interests of listed
entity at large forms part of the Board Report.

ESTABLISHMENT OF VIGIL MECHANISM AND WHISTLE BLOWER POLICY

The details pertaining to establishment of vigil mechanism and whistle blower policy forms part of the Board Report.

CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER CERTIFICATION

The Executive Director & Chief Executive Officer and Chief Financial Officer’s annual certificate on financial reports and internal
controls to the Board in terms of Regulation 17(8) of the Listing Regulations is contained in this Annual Report.

The Managing Director and Chief Financial Officer also jointly issue a quarterly compliance certificate on financial results and
place the same before the Board in terms of Regulation 33(2) of the Listing Regulations.

REPORT ON CORPORATE GOVERNANCE

This Chapter read together with the “Annexure to Corporate Governance” constitutes the Compliance Report on Corporate
Governance for 2020-21.

For and on behalf of the Board of Directors

H. M. Nerurkar
Place: Mumbai Chairman
Date: 24th June, 2021 DIN: 00265887

Annual Report 2020-21 103

Annexure A
Certificate as required under Part C of Schedule V of Listing Regulations - Regulation 34-Annual Report
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
To

The Members,
Crompton Greaves Consumer Electricals Limited
Tower 3, 1st Floor, East Wing,
Equinox Business Park, LBS Marg,
Kurla (West), Mumbai – 400 070

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Crompton
Greaves Consumer Electricals Limited having CIN L31900MH2015PLC262254 and having registered office at Tower 3,
1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400070 (hereinafter referred to as ‘the
Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3)
read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending
on 31st March, 2021 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority:
Date of Appointment in
Sr. No. Name of Director DIN
the Company
1 Mr. Damodarannair Sundaram 00016304 26/08/2015
2 Mr. Pangulury Mohan Murty 00011179 26/08/2015
3 Mr. Shantanu Khosla 00059877 21/09/2015
4 Mr. Hemant Nerurkar 00265887 25/01/2016
5 Ms. Shweta Jalan 00291675 16/08/2016
6 Mr. Sahil Dalal 07350808 16/08/2016
7 Mr. Promeet Ghosh 05307658 16/08/2016
8 Ms. Smita Anand 00059228 10/12/2018
9 Mr. Mathew Job 02922413 22/01/2021

Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted
the affairs of the Company.

For Pradeep Purwar & Associates

Company Secretaries
[Unique Identification No. S2003MH071600] [PR: 599/2019]

Pradeep Kumar Purwar

Proprietor
FCS No. 5769
Place : Mumbai CoP No. 5918
Date : 19th May, 2021 UDIN: F005769C000343238

104 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Annexure to Corporate Governance

Nomination and Remuneration Policy
APPOINTMENT AND REMOVAL OF DIRECTOR, Director for a term not exceeding five years at a time.
KMPs AND SENIOR MANAGEMENT No re-appointment shall be made earlier than one
Appointment criteria and qualifications year before the expiry of term.

1. The Committee shall identify and ascertain, 2. Independent Director

qualification, expertise and experience of the
An Independent Director shall hold office for a term
person for appointment as Director, KMP or senior
up to five consecutive years on the Board of the
management level and recommend to the Board his/
Company and will be eligible for re-appointment on
her appointment.
passing of a special resolution by the Company and
2. The Company shall not appoint or continue the disclosure of such appointment in the Board’s report.
employment of any person as Managing Director/
Whole-Time Director or Manager who has attained No Independent Director shall hold office for more
the age of seventy years. Provided that the term of than two consecutive terms, but such Independent
the person holding this position may be extended Director shall be eligible for appointment after expiry
at the discretion of the Committee beyond the age of three years of ceasing to become an Independent
of seventy years with the approval of shareholders Director.
by passing a special resolution based on the
Provided that an Independent Director shall not,
explanatory statement annexed to the notice for such
during the said period of three years, be appointed
motion indicating the justification for an extension of
in or be associated with the Company in any other
appointment beyond seventy years.
capacity, either directly or indirectly. However, if a
3. A whole-time KMP of the Company shall not hold person who has already served as an Independent
office in more than one company except in its Director for five years or more in the Company as
subsidiary company at the same time. However, a on 1st April, 2014 or such other date as may be
whole-time KMP can be appointed as a Director in determined by the Committee as per regulatory
any company, with the permission of the Board of requirement, he/she shall be eligible for appointment
Directors of the Company. for one more term of five years only.

4. A Director shall not be a member in more than ten At the time of appointment of Independent Director,
Committees or act as chairperson of more than five it should be ensured that number of Boards on which
Committees across all listed entities in which he is a such Independent Director serve is restricted to
Director, which shall be determined as follows: seven listed companies as an Independent Director
and three listed companies as an Independent
The limit of the Committees on which a Director may Director in case such person is serving as a Whole-
serve in all public limited companies, whether listed time (Executive) Director of a listed company.
or not, shall be included and all other companies
including private limited companies, foreign Removal
companies and companies under Section 8 of the
Due to reasons for any disqualification mentioned in
Companies Act, 2013 shall be excluded;
the Act and rules made thereunder or under any other
For the purpose of determination of limit, applicable Act, rules and regulations, the Committee
chairpersonship and membership of the audit may recommend, to the Board with reasons recorded
Committee and the Stakeholders’ Relationship in writing, removal of a Director or KMP subject to the
Committee alone shall be considered. provisions and compliance of the said Act, rules and
regulations.
Term/Tenure
1. Managing Director/Whole-time Director Retirement
The Company shall appoint or re-appoint any person The Whole-time Directors, KMP and senior
as its Managing Director and CEO or Whole-time management personnel shall retire as per the

Annual Report 2020-21 105

 applicable provisions of the Companies Act, 2013 5. The remuneration to KMP’s shall be decided
and the prevailing policy of the Company. The Board and recommended by the Nomination and
will have the discretion to retain the Whole-time Remuneration Committee (NRC) and approved
Directors, KMP and senior management personnel in by the Board of Directors.
the same position/remuneration or otherwise, even 6. If in any financial year, the Company has no
after attaining the retirement age, for the benefit of profits or its profits are inadequate, the Company
the Company. shall pay remuneration to its Managing Director
in accordance with the provisions of Schedule
The retirement date of Non-Executive Directors shall V of the Act and if it is not able to comply with
be on the day when they attain the age of 75 years. such provisions, with the previous approval of
the Central Government.
Remuneration for Directors and KMPs
7. The remuneration payable to each Non-
1. The remuneration/compensation/commission
Executive Director(s) is based on the
etc. to Directors will be determined by the
remuneration structure as determined by
Committee and recommended to the Board for
the Board, and is revised from time to time,
approval.
depending on individual contribution, the
2. The remuneration and commission to be paid Company’s performance, and the provisions of
to the Managing Director shall be in accordance the Companies Act, 2013 and the rules made
with the provisions of the Companies Act, 2013, thereunder.
and the rules made thereunder.
8. The remuneration to the Non-Executive
3. Increments to the existing remuneration/ Directors (including Independent Directors) may
compensation structure may be recommended be paid within the monetary limit approved by
by the Committee to the Board which should be shareholders, subject to the limit not exceeding
within the limits approved by the shareholders 1% of the profits of the Company computed as
in the case of Managing Director. per the applicable provisions of the Companies
Act, 2013.
4. Where any insurance is taken by the Company
on behalf of its Managing Director, Chief 9. The Independent Directors shall not be entitled
Financial Officer, the Company Secretary for to any stock option of the Company.
indemnifying them against any liability, the
premium paid on such insurance shall not be
treated as part of the remuneration payable to For and on behalf of the Board of Directors
any such personnel.
H. M. Nerurkar
Provided that if such person is proved to be
guilty, the premium paid on such insurance Place: Mumbai Chairman
shall be treated as part of the remuneration. Date: 24 June, 2021
th
DIN: 00265887

106 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Certificate On Corporate Governance

To
The Members,
CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED

We have examined the compliance of conditions of Corporate Governance by Crompton Greaves Consumer Electricals
Limited (hereinafter referred as “Company”) for the Financial year ended March 31, 2021 as prescribed under Regulations
17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and paras C, D and E of Schedule V of Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as
“Listing Regulations”).

We state that compliance of conditions of Corporate Governance is the responsibility of the management, and our examination
was limited to procedures and implementation thereof adopted by the Company for ensuring compliance with conditions of
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion, and to the best of our information and according to our examination of the relevant records and the explanations
given to us, we certify that the Company has complied with the conditions of Corporate Governance as prescribed under
Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

This certificate is issued solely for the purposes of complying with Listing Regulations and may not be suitable for any other
purpose.

Note: Due to lockdown under COVID-19, Certification on this Corporate Governance Report is done on the basis of
documents made available to us in electronic form by the Secretarial Team of the Company and such documents will be
verified physically after the lockdown is lifted.

For Mehta & Mehta

Company Secretaries
(ICSI Unique Code P1996MH007500)

Dipti Mehta
Partner
FCS No: 3776
CP No.: 23905
UDIN: F003667C000354864

Place : Mumbai
Date : 21st May, 2021

Annual Report 2020-21 107

Compliance Certificate by the Executive
Director & Chief Executive Officer and
Chief Financial Officer
To
The Members,
CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED
Dear Sir/Madam,
Sub: Compliance Certificate for the year ended 31st March, 2021 – Regulation 17(8) & Part B of Schedule II of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)
In compliance with Regulation 17(8) & Part B of Schedule II of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, (as amended), it is certified that –
A. We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge
and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(2) these statements together present a true and fair view of the Company’s affairs and comply with existing accounting
standards, applicable laws and regulations.
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which
is fraudulent, illegal or violative of the Company’s code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have
disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if
any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated to the Auditors and the Audit Committee:
(1) significant changes in internal control over financial reporting during the year;
(2) there were no significant changes in accounting policies during the year; and
(3) there were no instances of significant fraud of which we have become aware and the involvement therein, if any, of
the management or an employee having a significant role in the Company’s internal control system over financial
reporting.
Thanking you,

Mathew Job Sandeep Batra

Executive Director & Chief Executive Officer Chief Financial Officer
DIN: 02922413
Place : Mumbai
Date : 21st May, 2021

DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT UNDER SEBI (LISTING OBLIGATIONS

AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
In accordance with the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I hereby
confirm that all the Directors and Senior Management personnel of the Company have affirmed compliance with the Code of
Conduct, as applicable to them, for the financial year ended 31st March, 2021.

Mathew Job
Place : Mumbai Executive Director & Chief Executive Officer
Date : 21st May, 2021 DIN: 02922413

108 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Business Responsibility Report (BRR)

[As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

SECTION A - GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identity Number (CIN) L31900MH2015PLC262254
2. Name of the Company Crompton Greaves Consumer Electricals Limited
3. Registered Office and Corporate Office Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg,
Kurla (West), Mumbai - 400 070
4. Website www.crompton.co.in
5. E-mail Id crompton.investorrelations@crompton.co.in
6. Financial Year reported 2020-21
7. Sections that the Company is engaged 1. Electrical Consumer Durables (27501, 27502, 27503, 28132)
in (Industrial Activity code-wise) 2. Lighting Products (27400)
8. List three key products/services that the 1. Electrical Consumer Durables – Fan, Appliances and Pumps
Company manufactures/provides (as in 2. Lighting Products – Luminaires and Light Sources
Balance Sheet)
9. Locations where business activity is The Company has 8 Factories, 4 Regional Offices and 23 Branch
undertaken by the Company Offices.
10. Markets served by the Company Local/ The Company’s products are distributed pan-India and are also
State/National/International marketed in several countries like Nepal, Sri Lanka, Singapore,
Fiji, UAE, Oman, Saudi Arabia, Bahrain, Iraq, Kuwait, Qatar, South
Africa, Kenya, Ghana, Nigeria, Equatorial Guinea, Uganda, Italy and
Bangladesh.

SECTION B - FINANCIAL DETAILS OF THE COMPANY

1. Paid-up Capital (As on 31st March, 2021) ` 125.54 crore

2. Total Turnover ` 4,825.58 crore

3. Total Profit after Taxes ` 604.74 crore

4. Total Spending on Corporate Social Responsibility (CSR) ` 10.99 crore

5. As percentage of Profit after Taxes 1.82%

6. List of activities in which Corporate Social Responsibility • Skill Development

(CSR) expenditures have been incurred
• Water Conservation
• Response to COVID-19 Pandemic
• Community Development initiatives

Annual Report 2020-21 109

SECTION C - OTHER DETAILS
1. Does the Company have any Subsidiary Company/Companies?
Yes, the Company has three subsidiary companies in India:

(i) Nexustar Lighting Project Private Limited;

(ii) Pinnacles Lighting Project Private Limited; and
(iii) Crompton CSR Foundation.

2. Do the Subsidiary Company/Companies participate in the BR initiatives of the Parent Company? If
yes, then indicate the number of such Subsidiary Company(s)?
The Company’s subsidiaries define their own initiatives based on the context of their operations. As the parent company,
Crompton provides access to information and expertise, as applicable.

3. Do any other entity/entities (e.g. suppliers, distributors, etc.) that the Company does business with,
participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/
entities? [Less than 30%, 30-60%, More than 60%]
The Company has a long-lasting relationship with its Suppliers/Vendors and has aligned, its policies and guidelines on
sustainability, with them. Some of the initiatives taken have been as follows:
- significant amount of awareness is being created on sustainability among the Vendors;
- continued training is being imparted to all Strategic Vendors on Energy, Health and Safety; and
- skill enhancement sessions are being conducted at Vendor locations to build organisational capability and improve
performance standards.

SECTION D - BUSINESS RESPONSIBILITY INFORMATION

1. Details of Director/Directors responsible for BR
a. Details of Director/Directors responsible for the implementation of the BR policy/policies

Sr. No. Particulars Details

1. DIN 00059877
2. Name Mr. Shantanu Khosla
3. Designation Managing Director

b. Details of the BR Head

Sr. No. Particulars Details
1. DIN (if applicable) 02922413
2. Name Mr. Mathew Job
3. Designation Executive Director & Chief Executive Officer
4. Telephone Number +91 22-61678499
5. E-Mail ID mathew.job@crompton.co.in

110 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

2. 
Principle-wise (as per National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business {NVGs}) BR policy/policies (Reply in Y/N)
Sr.
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
1. Do you have a policy/policies for Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation Y Y Y Y Y Y Y Y Y
with the relevant Stakeholders? (Refer Note 1)
3. Does the policy conform to any national/ Y Y Y Y Y Y Y Y Y
international standards? If yes, specify? The Company’s Business Responsibility policies abide by
the spirit and content of Code of Conduct, all applicable
Laws and Standards. The policies are framed to comply with
applicable Regulatory requirements.
4. Has the policy been approved by the Board? All statutory policies are approved by the Board of Directors
and other policies are signed by the respective Business/
If yes, has it been signed by MD/Owner/CEO/ Function head.
appropriate Board of Directors?
5. Does the Company have a specified Yes, the implementation and adherence to the Policies are
Committee of the Board/Director/Official to overseen as stated:
oversee the implementation of the policy? Code of Conduct – Human Resources Department
Corporate Social Responsibility Policy – CSR Committee
(as per Companies Act 2013 and Rules framed thereunder)
Energy Health and Safety Policy – The Chief Executive Officer
Customer Service/Complaints – Designated After-Sales
Service Centres (Customer Delight being one of the
Company’s core values).
6. Indicate the link for the policy to be viewed Please refer to the links in the table below.
online?
7. Has the policy been formally communicated to Code of Conduct, CSR Policy, Vigil Mechanism and Whistle
all relevant internal and external stakeholders? Blower Policy and Prevention of Sexual Harassment Policy
are available on the website of the Company. The EHS Policy
has been communicated to all relevant stakeholders.
8. Does the Company have in-house structure to Yes.
implement the policy/policies?
9. Does the Company have a grievance Yes.
redressal mechanism related to the policy/ Crompton Ethics Line, the Company’s Whistle Blower
policies to address stakeholders’ grievances Mechanism provides Employees and Vendors a mode to
related to the policy/policies? report any concerns or grievances pertaining to any potential
or actual violation of Code of Conduct.
Customer Care Line, a customer complaint mechanism
records the grievances of customers on Quality of Product,
Service and any other issues.
The Company has an exclusive e-mail id for redressal
of investor grievances. Investors can email at crompton.
investorrelations@crompton.co.in to lodge their complaints.
10. Has the Company carried out an independent These policies are reviewed by internal and external auditors,
audit/evaluation of the working of this policy if need be, during their audits and reviews. However, no
by an internal or external agency? formal evaluation has been done by any internal or external
agency.

Note 1: While there may not be formal consultation with all stakeholders, the relevant policies have been drafted after
taking inputs from concerned internal stakeholders.

Annual Report 2020-21 111

 Linkages of various Company policies with BR Principles as per National Voluntary Guidelines (NVGs)
Principle
Principle Reference Document Reference Links
No.
1. Businesses should conduct 1. Code of Conduct 1. https://www.crompton.co.in/
and govern themselves with 2. Vigil Mechanism and wp-content/uploads/2020/05/
ethics, transparency and Whistle Blower Policy Crompton-Code-of-Conduct.pdf
accountability 2. https://www.crompton.co.in/wp-
3. Code of Conduct to
Regulate, Monitor and content/uploads/2020/05/Vigil-
Report Trading by Insiders Mechanism-and-Whistleblower-
Policy.pdf
4. Prevention of Sexual
Harassment Policy 3. https://www.crompton.co.in/
wp-content/uploads/2020/02/
Code-of-Conduct-to-Regulate-
Monitor-and-Report-trading-by-
Designated-Persons.pdf
4. https://www.crompton.co.in/media/
CGCEL-POSH-Policy-.pdf
2. Businesses should provide 1. Environment, Health and 1. https://www.crompton.co.in/media/
goods and services that Safety Policy EHS-Policy.pdf
are safe and contribute to
sustainability throughout
their lifecycle
3. Businesses should 1. Code of Conduct 1. https://www.crompton.co.in/
promote the wellbeing of all 2. Environment, Health and wp-content/uploads/2020/05/
employees Safety Policy Crompton-Code-of-Conduct.pdf
3. Maternity Leave Policy 2. https://www.crompton.co.in/media/
EHS-Policy.pdf
3. The other policies are internal
policies and are not displayed on
the website of the Company but are
part of the Company’s Employee
portal.
4. Businesses should 1. Code of Conduct 1. https://www.crompton.co.in/
respect the interests 2. Corporate Social wp-content/uploads/2020/05/
of, and be responsive Responsibility Policy Crompton-Code-of-Conduct.pdf
towards all stakeholders, 2. https://www.crompton.co.in/
especially those who are wp-content/uploads/2021/03/
disadvantaged, vulnerable Corporate-Social-Responsibility-
and marginalized Policy.pdf
5. Businesses should respect 1. Code of Conduct 1. h t t p s : / / w w w . c r o m p t o n . c o . i n /
and promote human rights wp-content/uploads/2020/05/
Crompton-Code-of-Conduct.pdf
6. Businesses should respect, 1. Corporate Social 1. h t t p s : / / w w w . c r o m p t o n . c o . i n /
protect, and make efforts to Responsibility Policy wp-content/uploads/2021/03/
restore the environment 2. Environment, Health and Corporate-Social-Responsibility-
Safety Policy Policy.pdf
2. https://www.crompton.co.in/media/
EHS-Policy.pdf

112 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Principle
Principle Reference Document Reference Links
No.
7. Business when engaged 1. Code of Conduct 1. h t t p s : / / w w w . c r o m p t o n . c o . i n /
in influencing public and wp-content/uploads/2020/05/
regulatory policy, should do Crompton-Code-of-Conduct.pdf
so in a responsible manner
8. Businesses should support 1. Corporate Social 1. h t t p s : / / w w w . c r o m p t o n . c o . i n /
inclusive growth and Responsibility Policy wp-content/uploads/2021/03/
equitable development Corporate-Social-Responsibility-
Policy.pdf
9. Businesses should engage 1. Code of Conduct 1. https://www.crompton.co.in/
with and provide value 2. Product Service Policy wp-content/uploads/2020/05/
to their customers and Crompton-Code-of-Conduct.pdf
consumers in a responsible 2. The Company framed Service
manner Policy internally and circulated
amongst the Service centres for
adherence.

3. Governance related to BR To emphasise on the values of transparency, ethical

(a) Indicate the frequency with which the Board of behaviour, empowerment and accountability, the
Directors, Committee of the Board or CEO meet to Company has formalised the ‘Code of Conduct’
assess the BR performance of the Company. for Directors and all employees of the Company.
The Code lays down principles and standards that
Annually. govern the actions of the employees during conduct
of the Company’s business. It covers all dealings with
(b) Does the Company publish a BR or a Sustainability vendors, customers, and other business partners. Any
Report? What is the hyperlink for viewing this actual or potential violation of the Code, howsoever
report? How frequently it is published? insignificant, would be a matter of serious concern for
the Company. The Company’s induction programme
The Company publishes the information on BR for new joinees mandates initiation to the Crompton
in the Annual Report which is available on the Code of Conduct.
website of the Company.
The Company has introduced the e-learning tool on
SECTION E - PRINCIPLE-WISE PERFORMANCE POSH, Whistle Blower Policy and Code of Conduct for
all regular employees of the Company. The Company
Principle 1: BUSINESSES SHOULD CONDUCT has also introduced the e-learning tool on Prohibition
AND GOVERN THEMSELVES WITH ETHICS, of Insider Trading for all the designated persons of the
TRANSPARENCY AND ACCOUNTABILITY Company.
1. 
Does the policy relating to ethics, bribery and
corruption cover only the company? Yes/No. Does The Company has established mechanisms to receive
it extend to the Group/Joint Ventures/Suppliers/ and address complaints from different stakeholders
Contractors/NGOs/Others? including Investors, Customers, Consumers,
Employees and Suppliers.
The Company is committed to adhere to the highest
standards of ethical, moral and legal code of conduct
The Company has laid down a Vigil Mechanism for
for business operations. Crompton’s behavioural
Employees, Directors and Vendors to report concerns
framework is built upon five Value pillars i.e. Personal
on any unethical behaviour, actual or suspected fraud
Leadership, Courage, People Development, Innovation
or any violation of the Company’s Code of Conduct.
and Execution Excellence.
The Whistle Blower Policy facilitates employees and
vendors to report without fear, any wrongdoings,
unethical or improper practice.

Annual Report 2020-21 113

 The Company has formed a separate Stakeholders’ Principle 2: PRODUCT LIFE CYCLE
Relationship Committee to address shareholder SUSTAINABILITY
grievances.
BUSINESSES SHOULD PROVIDE GOODS AND
The Company has an exclusive e-mail id for redressal of SERVICES THAT ARE SAFE AND CONTRIBUTE TO
SUSTAINABILITY THROUGHOUT THEIR LIFE CYCLE
investor grievances. Investors can email at crompton.
investorrelations@crompton.co.in to lodge their 1. List three products or services whose design has
complaints. All shareholder complaints received during incorporated social or environmental concerns,
the reporting year have been resolved successfully as risks and/or opportunities:
on 31st March, 2021. The Company emphasises on energy efficiency while
designing all its products. Three products whose
To address workplace-related issues, the senior
design has incorporated social or environmental
management team has periodic interactions, including concerns, risks and/or opportunities are:
open houses with employees at different locations.
The Managing Director and Executive Director & Chief i) Quantum series of pumps with BEE star ratings
Executive Officer receive feedback from employees
across the country through specially instituted ii) Arno Neo Water heaters
mechanisms.
iii) Sol Aura storage Water heaters
The Company has implemented an IT tool that helps
iv) Rapid Jet instant water heater
track statutory compliances as close as possible to
the actual due date. Any deviations are highlighted 2. For each such product, provide the following details
for prompt corrective actions. Functional owners in respect of resource use (energy, water, raw
are responsible for taking preventive actions. This material, etc.) per unit of product (optional):
web-based compliance management system not
i) Quantum series of pumps launched for residential
only helps adhere to the regulatory requirements,
and agricultural applications have highest star
but also develops a culture of self-regulation and
ratings given by BEE (5 Star) which has almost
accountability within the organisation. In the present
40% more efficiency than normal ISI pump.
times, when governance is looked upon as a critical
aspect of sustainability, the Company believes that its ii) The Company launched an energy-efficient
compliance management system plays a significant range of Storage Water Heater which is designed
role in ensuring good corporate governance practices. in such a way to get maximum 5 BEE star rated
product with proper insulation and better-quality
2. 
How many stakeholder complaints have been Thermostat for Temp sensing.
received in the past financial year and what
percentage was satisfactorily resolved by the iii) These 5 Star Rated products saves up to 46%
management? on energy bills for the consumer as compared
During the year under review, the Company received 14 to 1 Star rated Storage Water Heater for their
complaints from its shareholders which were promptly respective capacity.
resolved. The details of the complaints are:
iv) Company put more focus to introduce 6 Litre - 5
Sr. No. of Star BEE rated SWH to move Instant water heater
Complaints Received
No. Complaints consumers to Storage Water heater, which
1 Non-receipt of Annual Report 0 results in saving of energy.
2 Non-receipt of Securities 0
3 Non-receipt of Dividend 3 3. 
Procedures in place for sustainable sourcing
Warrants (including transportation) and percentage of inputs
sourced sustainably.
4 Escalation to SEBI 7
5 Escalation to Stock Exchange 4 (i) Sustainability Roadmap

Total 14 The Company has been continuously striving

to enhance sustainability associated with its
sourcing practices.

114 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

The sustainability roadmap of the Company Towards the same, the Company has been
includes strategy of one vendor per platform, able to reduce the primary distance travelled
common supplier basket for different product via significantly optimising the warehouse
lines, sourcing from tightly knit clusters, footprint across the country and leveraging GST
optimising logistics to reduce fuel consumption, implementation.
emissions and carbon footprint, re-working
packaging to minimise wastage and re-use. The Company does not allow any vehicles which
are not having valid documents, including PUC
certificates inside the factory, nor use them for
(ii) Supply Chain Partnering
transportation purpose.
Sustainability is extended to vendors through
responsible procurement practices and selection Import substitution across products and
criteria focussed on the protection of the components in Lighting and Fans has been
environment, societal interest seeking resource initiated.
efficiency, improving the quality of products and
services. The Company is committed to improving The Company uses managed centralised print
awareness among Vendors, on legal compliances, services, with the help of password authentication,
enhance eco-efficiencies, employee health and which minimise usage of paper and ink.
safety through various initiatives.
4. Steps taken to procure goods and services from
Vendors and service providers are encouraged to local and small producers, including communities
adopt management practices detailed under the and capability building initiatives, undertaken for
International Standards such as ISO 9001, ISO local and small vendors.
14001, OHSAS 18001 and other Environment, The Company encourages the procurement of
Health and Safety (EHS) guidelines. New vendor goods and services from local and small producers
development process consists of stringent surrounding its plant locations. The contractors,
adherence check against EHS and statutory and engaged in the plants, mostly employ workmen from
legal norms laid under State Factory Acts. Existing the nearby villages.
vendors undergo periodic EHS assessments
as a part of routine audits and are required to Vendor selection is determined by the following factors:
demonstrate sustenance for business continuity.
1. Capability, quality, performance and on-time
Contract manufacturing agreements provide for
delivery;
compliance with accepted standards on issues
related to EHS and labour practices. 2. Compliance to legal, environment, health and
safety guidelines;
(iii) Packaging Materials and Process
The Company has adopted recycling and reuse 3. Readiness to participate in sustainable supply
of metal bins for the handling of semi-finished chain management programme; and
components for selected categories, thereby
4. Total landed cost competitiveness;
eliminating wooden packaging. The Company is
investing to secure cargo during dispatches by 5. Financial strength by viewing last two years
improving loading procedures. balance sheets.

(iv) Distribution and Logistics The Company collaborates with its strategic vendors
and partners in developing their product and technical
An efficient distribution network is an asset to skills. It also engages with them through various training
any industry and is one of the key contributors and development initiatives at regular intervals, makes
to sustainability and profitability. The Company frequent visits to Vendors’ factories and conducts
has strategically created storage locations and impactful workshops to reward and recognise their
introduced Warehouse Management System contribution through scorecard assessments, etc.
practices for finished goods across the country for
quick and easy serving and better transparency of The Company signifies and trains its vendors to meet
stocks. the EHS requirements across all its plant locations.

Annual Report 2020-21 115

 This practice is not only greatly improving the g) Employee Assistance programmes with trained
Vendor efficiency but also considerably reducing the psychologists.
Company’s carbon footprint.
h) Deep-embedded employee engagement programmes
In addition to this, the Company widely promotes (often involving family members).
vocational skills, development and training programmes
to improve the livelihood of the neighbouring i) Initiatives around work-life balance.
community.
j) Organisation-wide movements around employee
5. 
Mechanism to recycle products and waste and physical fitness.
the percentage of recycling of products and waste
(separately as <5%, 5-10%, >10%) k) Programmes centred around stress, positive
The Company adopts comprehensive Environment intelligence, etc.
Management Practices to focus on the conservation
of natural resources across all its operating units. It l) Free vaccination programmes for employee and family
has stringent waste management policies for internally members (incl. indirect employees).
generated wastes.
m) Extensive 1-1 and small-group connect programmes
Solid waste/sludge from Water and Waste treatment with leaders and managers.
plants and Process waste from the factories, is disposed
in a controlled manner into the Government-approved n) Paying salaries ahead of time and disbursement of
Common Hazards Waste Treatments Storage and bonus and incentives on-time.
Disposal Facility (CHWTSDF).
o) Deployment of value-added processes such as career
Principle 3: EMPLOYEES’ WELL-BEING conversations and development.

BUSINESSES SHOULD PROMOTE THE WELL-BEING OF The Company provides overriding priority to Employee
ALL EMPLOYEES Safety. It is committed to building a safety culture by
The Company lays a huge impetus on the well-being of all implementing Behaviour-Based Safety through trainings
its employees. It emphasises on creating a stimulating work and workshops, recording workplace hazards, conducting
environment to enable employees to learn, develop, thrive scheduled Fire-Safety Audits (in-house), strict adherence to
and deliver best performance aligned with the Company’s Work Permit System (WPS) and Daily Tool-box talks, etc.
objectives. The Company continuously strives to positively
influence the employees to remain engaged and committed. Regular interaction is maintained through Safety Committee
meetings with all associates. Fire-Safety Drills, Safety
a) Guaranteeing “no-job-and-no-salary-cut” policy to all
Week Celebration and continuous Safety training to all
employees.
employees begin with adequate induction. Internal and
b) Proactive “work-from-home” and “work-from- cross plant safety audits are conducted too. All actions
anywhere” policy. and recommendations are being recorded and evaluated
by respective EHS leaders. This monitoring has a major
c) Industry-leading safety protocols and tools (incl. AI- role in reducing workplace hazards/incidents and making
enabled devices). Crompton, a Zero-accident organisation.

d) Significantly enhanced benefits around hospitalisation, The organisation has identified scenario-based emergency
and Employee Life. For example, your Company have preparedness plans to counter specific emergencies. On
almost doubled the benefits around employee life, with
a regular basis, mock tests and drills are planned and
the life-benefits being at 5-6 times annual compensation
executed to ensure Emergency Response Team members
for junior cadres.
are quick to respond to any situation.
e) On-line free medical consultation, and provision of
Safety standards are monitored through a focus on
medical support (such as Oxygen concentrators).
appropriate safety control, elimination of unsafe activities,
f) Personalised attention and treatment of employees providing better replacement methods and installation of
beyond policy (incl. financial support). foolproof engineering solutions (Poka-Yoke).

116 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Other details are mentioned below: 1. Permanent employees - 77%

1. Total number of employees -
2. Permanent women employees - 77%
The total number of employees including contract 3. Casual/temporary/contractual employees - 76%
labour and trainees were 4,158.
4. Employees with disabilities - 100%
2. Number of employees hired on temporary/contractual/
casual basis - Principle 4: STAKEHOLDER ENGAGEMENT
1. Has the Company mapped its internal and external
The total number of employees hired on temporary/ stakeholders?
contractual/casual basis as on 31st March, 2021 was
Yes. The key stakeholders and their mode of
2,305. In the previous year, there were 2,195 contractual
engagements are shown below:
employees.

3. Number of permanent women employees - Stakeholders Mode of Engagement

Government Industry bodies/forums, direct
The total number of permanent women employees was and Regulatory interactions
157. In the previous year, there were 159 permanent Authorities
women employees.
Employee Meetings, newsletters, employee
4. Number of permanent employees with disabilities - satisfaction surveys and trainings
Customers Customer meets and visits by
The Company has 4 permanent employees with a Company officials
disability.
Investors and Investors meet, annual general
5. Employee associations recognised by the Stakeholders meeting and annual report
management - Suppliers Site visits and personal/telephonic
interactions
The Company respects the rights of employees
to free association and union and representation. Trade Unions Works Committee, Grievance
The Company has various employee unions in Committee and Union Meetings
Ahmednagar, Vadodara, Bethora and Kundaim which Dealers and Meetings &Trainings
encourage them to participate freely in constructive Community/
dialogue with the management. Society
6. Percentage of permanent employees that are members
of recognised employee associations - 2. O
 ut of the above, has the Company identified
the disadvantaged, vulnerable & marginalised
All permanent blue-collar employees of Ahmednagar, stakeholders?
Vadodara and Goa manufacturing units are members Yes. The disadvantaged and vulnerable stakeholders
of trade unions/employee associations. include differently-abled employees, rural communities
and people from economically weaker background in
7. Number of complaints relating to child labour, forced and around the Company’s plants.
labour, involuntary labour, sexual harassment in the
last financial year and pending, as on the end of the
3. 
Are there any special initiatives taken by the
financial year - Company to engage with the disadvantaged,
vulnerable and marginalised stakeholders.
No cases of child labour, forced labour, involuntary
labour and discriminatory employment were reported.
The Company provides equal opportunities to
One complaint on sexual harassment was reported in
differently abled, marginalized, rural communities and
the last financial year.
people from economically weaker backgrounds. All
8. Percentage of under-mentioned employees that were employees are offered equal opportunities for career
given safety and skill upgradation training in the growth.
previous year:

Annual Report 2020-21 117

Principle 5 - HUMAN RIGHTS 2. 
The Company’s strategies/initiatives to address
global environmental issues, such as climate
BUSINESSES SHOULD RESPECT AND PROMOTE
change, global warming and more
HUMAN RIGHTS.
The Company takes pride in actively and continuously
1. Does the policy of the Company on human rights engaging in Operational improvements focussed on
cover only the Company or extend to the Group/Joint Environmental sustainability and to address related
Ventures/Suppliers/Contractors/NGOs/Others? issues. Some of the initiatives undertaken during the
The Code of Conduct applies to all employees of the reported period were:
Company.
Reduction in energy consumption:
Human Rights issue is a part of the vendor selection Saved 1.03 Lakh Electricity Units 2019-20 vs 2020-21 at
process and is also included in the contracts drawn up Ahmednagar Factory
with the vendors.
- Replacement of all shop floor & office conventional
The Company’s Vigil Mechanism and Whistle Blower light fittings by LED fittings, at Ahmednagar
Policy extends to its vendors and ensures that any Factory.
violations to its Code of Conduct (including violation of - Heat loss of oven was arrested by running plant
Human Rights) are addressed objectively. on alternate days with 2 shifts at Bethora; this has
resulted in saving of 2,09,698 KWh.
2. 
How many stakeholder complaints have been
- Replaced 90W streetlights with 35W LED
received in the past financial year and what
streetlights at both Baddi Fan Units which has
percentage was satisfactorily resolved by the
given saving of 3.34 MWh (Replaced 20 Nos. of
management?
Streetlights).
No complaint was received from stakeholders under the
Reduction in water consumption:
Code of Conduct.
- Auto Water Dispenser on DMB line which
Principle 6 - ENVIRONMENT results into ~8,000 Litres water saving/year at
Ahmednagar Factory.
BUSINESS SHOULD RESPECT, PROTECT AND MAKE
a) Existing Process – Manual flow control
EFFORTS TO RESTORE THE ENVIRONMENT
(~1.4L/Pump), Excess overflow of water,
1. Coverage of the policy related to Principle 6 and Wet floor due to excess overflow.
its extension to the group/joint ventures/suppliers/
contractors/NGO’s/others b) Modified Process – Auto flow control (~1.2L/
Pump), No overflow of water, No unsafe
The Company constantly strives and focusses its condition of wet floor.
efforts for the cause of the environment, by not only
making efficient use of available resources but also - Canteen Waste Water Storage Tank Repairing,
by augmenting the natural resources. Its policies and which had leakages at multiple locations, resulting
activities are aligned to respond to the challenges in increase in recycled water by 30 KL i.e. actual
emerging out of climate changes, in the form of energy in 2020-21 and annual potential is 150 KL at
conservation, water conservation, use of renewable Ahmednagar Factory
energy, waste minimisation and expansion of greenery.
- 50 no. of trees planted as part of the tree plantation
In addition to the focus on conserving finite resources drive at Ahmednagar Factory.
together with reducing harmful emissions, sustainable
management at all stages of the value chain and - 50 no. trees planted & 150 no. of trees distributed
throughout the entire life cycle of the products is now among employees at Goa Factories.
an essential part of the Company’s philosophy. - Installed Auto operating taps, which has saved
The Company’s Environment, Health and Safety (EHS) water by 29% over last year. (In 2019-20 Water/
Policy covers all employees and stakeholders across all Employee was 3.63 KL, in 2020-21 Water/
manufacturing units and it has been displayed both in Employee is 2.6 KL) at Goa Factory.
English and local languages.
- With STP in place, were able to recycle 15% more
Water w.r.t. Last Year. In 2019-20: 3368 KL, in
2020-21: 3876 KL at Goa Factory.

118 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

- Reduced water consumption by 10% compared to Provided more stability to structure and provision
last year at Baddi lighting Unit. This was achieved for secondary retractable wire rope in case of
by rectifying the water leakages and minimising failure of primary system.
the water wastage for flushing and washing.
- Layout Modification of Industrial Pump Assembly
(Saved 350 KL compared to last year).
area & Impeller Balancing area :-
Following initiatives were taken at Vadodara plant:
1) Provided material quarantine facility for
35 no. of trees planted. incoming raw material against COVID-19
precautions.
New STP Installed near Canteen increase
recycling water. 2) Modified the Impeller balancing layout for
safe material handling and safe evacuation.
2019-20 Total Recycling water 15546 KL.
2020-21 Total Recycling Water 18668 KL Increase The Company’s Bethora Fans factory has emphasised
3122 KL. improving the efficiency of its manufacturing processes,
which resulted in the reduction of hazardous waste
Recycling water use for Gardening Purpose. generation by 5% from last year (6100 kgs to 5800 kgs
in 2020-21).
Reduction in FTL/GLS/LED production.
Installed Roof top lifeline for Baddi Lighting Unit, for
Due to these initiatives, there has been a reduction
safe roof work related operations.
of 1,367 kg of waste produced.
Installed Auto Fire suppression system at main
3. Identification and assessment of potential
electrical panels of both Baddi Fan units. This was
environmental risk
installed to eliminate major fire hazard in plant due to
- The Company has established management any electrical spark in panel. This system is capable
systems, certified by accredited agencies in line to extinguish at local level with immediate action fire
with International Standards like IMS 45001:2018.
Fighter Certification training done at Vadodara.
Identification, assessment and evaluation of
potential environmental risk are a continuous Visitor induction standard system developed and
process at all the operational facilities of the implemented at Vadodara unit – Television and safety
Company. video provided in Visitor room.
- The operational units ensure that all hazardous Chemical room safety kit flame proof lighting and
waste is sent to the authorised disposal operator Emergency door installed at Vadodara.
approved by the Pollution Control Board. An
authorised recycler approved by CPCB is Lighting Vadodara unit received Fame Excellence
responsible for E-waste disposal. Platinum Safety Award 2020 in Safety Excellence
Category.
- ATS Unit for Server Room
4. Company’s initiatives towards clean development
Installed ATS (automatic power transfer switch) mechanism
which is having 2 inputs (existing 3 KVA UPS and
10 KVA Solar UPS) and 1 output for uninterrupted The Company continues its contribution towards the
power supply for servers, telephone EPBX and Environment by ensuring efficient use of resources and
CCTV all time during breakdown or preventive responsible means of waste disposal. The Company’s
maintenance to and eliminate chances of server, EHS policy commits to establishment and effective
telephone EPBX and CCTV system failure or data execution of Management systems, thereby enabling
loss. all the Company’s Operational units to be certified with
IMS QMS 9001:2015 (Quality Management System),
- Replaced all individual UPS from Shop floor with ISO 14001 (Environmental Management Systems) and
Centralised UPS, which saves space, energy & ISO 45001:2018.
created safe working conditions, also reduces
maintenance cost. Sustainability Audit by M/s. SGS, 92% Score for Health
& Safety & 94% for Environment.
- Improvement of Stability & Safety of Suction Lift
Setup. The Company has adhered to the applicable standards
and limits for emissions and waste prescribed by the

Annual Report 2020-21 119

 respective SPCB/CPCB and did not receive any show- of Advertisers, IMA IP Ltd., Indian Society of Lighting
cause notice for the year 2020-21 for all Baddi units. Engineers, Electrical Lamp Manufacturer’s Association,
Bureau of Indian Standards (BIS), National Lighting
5. The Company’s initiatives on – clean technology, Code and Bombay Chambers of Commerce.
energy efficiency and renewable energy, among
others 2. Advocated/lobbied through the above associations
for the advancement or improvement of the public
The Company is cognisant of the need to conserve
good
energy through clean technology. As part of its
core value of operational excellence, the Company The Company is working with IPMA Core Committee
continuously strives to achieve efficiency at all its towards creation of new standards for Solar Pumps.
manufacturing facilities, and many of its new initiatives
both capital and operational are on the path of effective PRINCIPLE 8 - INCLUSIVE GROWTH
utilisation of resources. BUSINESSES SHOULD SUPPORT INCLUSIVE
GROWTH AND EQUITABLE DEVELOPMENT
Reduction in energy consumption:
1. Does the Company have specified programmes/
- Replacement of all shop floor & office
initiatives/projects in pursuit of the policy related
conventional light fittings by LED fittings, at
to Principle 8? If yes, details thereof.
Ahmednagar Factory.
The Company’s CSR Policy is drawn up on the basic
Saved 1.03 Lakh Electricity. Units FY19-20 Vs principles of “Responsible Business” and “Shared
20-21 at Ahmednagar Factory. Value”, aligned to the developmental priorities
identified by the provisions of Companies Act, 2013.
6. Reporting on the emissions/waste generated by The Policy, inter alia, deals with the objectives of the
the Company as per the permissible limits given by Company’s CSR initiatives, the guiding principles,
CPCB/SPCB the responsibilities of the CSR Committee, the
implementation plan and reporting framework.
The Company has renewed Occupational health centre
membership for the Baddi Unit’s locations. UJJVAL DEEP, the Company’s CSR programme
framework is aligned to its long-term commitment to
The Company is complying with the emission norms build positive value for the communities.
and periodic reports are submitted with the CPCB and
SPCB, as per statutory requirements. Since inception, Crompton has recognised its
responsibility towards the society and has remained
Occupational health centre State Pollution Control committed to its role as a responsible corporate
Board authorisation valid up to 31.12.2075 – lighting. citizen. Over the years, Crompton has developed
and implemented various programmes to create and
7. Number of show cause/legal notices received from enhance shared value through unique, scalable, and
CPCB/SPCB, which are pending (i.e. not resolved sustainable models to achieve this objective.
to satisfaction) as on the end of the financial year
Major thrust areas of the Company’s CSR initiatives
The Company has not received any show cause/legal are:
notices from CPCB/SPCB during the financial year
under review. • Skill Development
• Water Conservation
PRINCIPLE 7 - POLICY ADVOCACY
BUSINESSES WHEN ENGAGED IN INFLUENCING • Response to COVID-19 Pandemic
PUBLIC AND REGULATORY POLICY, SHOULD DO SO • Community Development initiatives
IN A RESPONSIBLE MANNER
• Employee Engagement Program
1. Representation in any trade and chamber/
association Skill Development

The Company has its representation in several The goal of the Skill Development Program was
Business and Industrial associations such as the Indian to create opportunities, scope and space for the
Pump Manufacturers Association (IPMA), Southern development of the talents of the unprivileged youth
India Engineering Manufacturers Association (SIEMA), and women by imparting of skills training & placement
Indian Fan Manufacturers Association (IFMA), the assistance to the desired candidates to enhance the
Advertising Standards Council of India, Indian Society employability.

120 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Crompton has collaborated with NGO partners to run The focus of relief work was on supporting quarantine
9 centres across the country to provide a 3-month centres, providing critical medical equipment to
vocational training in electrical and plumbing. The hospitals, providing sanitisation kits to community
theory and practical trainings are aligned to the members & Government institutions, providing PPE
National Skill Development Mission as well as the kits to first responders and other front-line workers,
industry requirements. distribution of ration kits to feed insecure household,
providing meal to vulnerable community including
Crompton supports skilling of youth in Maharashtra migrant workers.
in the field of Electrical, Wireman and repair of
Home Appliances and followed by placement and Across India, over 10 Hospitals were supported by
entrepreneurship assistance. This programme is providing essential Medical equipment for testing and
specifically designed to help students, who come from treatment, 1,42,000 people benefited through meal
different and often, tough backgrounds dealing with services, 2,500 ration kits were distributed among
harsh problems, build their self-esteem and confidence people impacted due to lockdown and under treatment.
and help them develop a positive attitude. Crompton
supports skill training of women in the rural Maharashtra Community Development initiatives
to operate and maintain the sewing machines. As a responsible corporate citizen, Crompton is
Over the year, 1,558 people were trained and 1,046 committed to lending a hand for community upliftment
were successfully placed in the jobs. through various initiatives for poverty alleviation,
education and sustainability.
Water Conservation
The Company supported distribution of Happiness
Water, being at the core of sustainable development,
Boxes to over 7,000 children and their families from
has strong linkages with other developmental
low income group. Crompton has supported imparting
parameters such as education, health, food security
of Citizenship Values and Life Skills development
and livelihoods. In the Indian context, access to water
programmes in schools and colleges to fill this gap.
is extremely critical to ensure survival and progress of
rural, underprivileged and marginalised sections of the Online sessions were held in 15 schools where 1,200
society. The programme designed with a conscious students were organised in 34 clubs to discuss critical
effort to increase capacity for water availability by citizenship skills, especially considering the COVID-19
construction, restoration and rejuvenation of water pandemic.
bodies. In colleges, workshops were held on topics such as
The plethora of initiatives undertaken by the gender and personal integrity. Over 4,000 students
Company will positively impact the villages and from 5 cities and 46 colleges reached out through this
improve their health and livelihood. The Water session. “My Happy Bags” containing toys, stationery
conservation interventions are addressing the issue of and toy mask were distributed to 750 students in 9
water security in drought prone villages of Maharashtra. government schools.
In partnership with grassroot NGO and local self- Employee Engagement Program
government institutions, Crompton is supporting
The Company constantly engage its employees in all
scientifically-proven water and soil conservation
its CSR initiatives as we strongly believe that human
structures. Water Conservation structures will be
managed and owned by villagers. capital is the key for our successes. The Company
launched the Fit Crompton Movement, whereby
Through Water Conservation initiatives, over 16,000 employees were encouraged to work out to raise
villagers will be benefited. money for the Happiness Boxes. For every kilometre
Health and Response to COVID-19 Pandemic that the employee covered, the Company committed
` 10 towards the Happiness Boxes for underprivileged
On 30th January, 2020, the World Health Organization
children.
(WHO) declared COVID-19 a public health emergency.

As a part of the commitment to rise to the occasion when 2. Modes through which programmes/projects
the Nation needs it the most, Crompton had extended undertaken (through in-house team/own foundation/
its support to Hospital, Covid Care Centres and to external NGO’s/Government structures/any other
those impacted by pandemic like daily wage workers, organisation)
people living in slums and rural areas. Crompton has The Company undertakes the programmes and
also extended its support to front line workers working projects on its own, through Crompton CSR Foundation
relentlessly to fight the pandemic. and other like-minded organisations.

Annual Report 2020-21 121

3. Impact assessments for initiatives During the year, the Company received a total of
Impact assessment of CSR initiatives was done in 2019- 18,42,792 product-related customer complaints, out
20 by an independent agency which has indicated of which, 18,35,049 complaints were successfully
areas of improvement. For the reporting period, the resolved.
focus was on providing immediate relief services
Out of the total complaints received during the year,
towards COVID-19 pandemic as it was a national
15,59,276 were within stipulated warranty period and
priority. Further, the Company intends to continue to
out of these 15,51,534 were successfully resolved as
review the impact of its various initiatives in the coming
on 31st March, 2021.
years.
There were 27 consumer-related legal cases pending
4. Company’s direct contribution to community as on 31st March, 2021.
development projects
2. Product information and product labelling
Details of the projects undertaken are mentioned in the
Annual Report on CSR Activities in the Board’s Report. All th Company’s product carry the information required
under the Legal Metrology Act, 2009.
5. Steps undertaken to ensure that community All Labels and Artwork are approved and docketed in
development initiatives are successfully adopted a digitised manner through a tool known as Artwork
by the community Management System across all PLs and the After-Sales
The Company ensures its presence is established Service Team.
right from the commencement of the initiatives. It
3. Case filed by any stakeholder against the Company
collaborates with the communities right from need
regarding unfair trade practices, irresponsible
identification to project implementation. All projects
advertising and/or anti-competitive behaviour
have clear feedback mechanisms weaved into them,
during the last five years and pending as on end of
with a focus on long-term sustainability and active
the financial year
community ownership.
Nil
PRINCIPLE 9 - CUSTOMER VALUE
4. Consumer survey/consumer satisfaction trends
Businesses should engage with and provide value to
carried out by the Company
their customers and consumers in a responsible manner.
Yes, the Company conducts periodic Consumer
1. Percentage of customer complaints/consumer
surveys to identify their needs, to take feedback and
cases pending as on the end of the financial year
use such information for new product development.
The Company has a well-established system to handle
customer complaints and feedback. Consumers Your Company have started tracking NPS (Net
can provide their feedback or lodge product-related Promoter Score) as a metrics for tracking Consumer
complaints through a designated email id i.e. consumer. satisfaction across Categories.
support@crompton.co.in and call centre toll-free no.
1800 4190 505.

122 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Independent Auditor’s Report

To the Members of Crompton Greaves Consumer matters were addressed in the context of our audit of the
Electricals Limited standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
Report on the Audit of the Standalone Financial opinion on these matters.
Statements
Opinion We have determined the matters described below to be the
key audit matters to be communicated in our report..
We have audited the standalone financial statements of
Crompton Greaves Consumer Electricals Limited (the 1. Goodwill (Refer Notes 2 and 38 to the standalone
‘Company’), which comprise the Balance Sheet as at financial statements)
31st March, 2021, and the Statement of Profit and Loss, the On the demerger of the Consumer Business from
Statement of Changes in Equity and the Statement of Cash Crompton Greaves Limited (CGL) (now CG Power and
Flows for the year then ended, and notes to the standalone Industrial Solutions Limited) and in terms of ‘Scheme of
financial statements, including a summary of the significant Arrangement’ the assets and liabilities of the Consumer
accounting policies and other explanatory information. Business along with certain brand usage rights
were transferred to Crompton Greaves Consumer
In our opinion and to the best of our information and
Electricals Limited (CGCEL). The excess of liabilities
according to the explanations given to us, the aforesaid
over net assets based on fair value and the share
standalone financial statements give the information required
capital amounting to Rs. 779.41 crore, was recorded
by the Companies Act, 2013 (the ‘Act’) in the manner so
as Goodwill in the books of CGCEL. The Company
required and give a true and fair view in conformity with the
has adopted the policy of amortising the goodwill in
accounting principles generally accepted in India, of the
the books of account, on the outcome of impairment
state of affairs of the Company as at 31st March, 2021, and
test if there is an indication of impairment as at the
its profit, changes in equity and its cash flows for the year
reporting date. Based on the valuation done by the
ended on that date.
management’s consultant, the value of the goodwill
Basis for Opinion is more than book value of goodwill as at 31st March,
2021, and hence, there is no indication of impairment.
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of
We draw attention to Note 45 to the standalone
the Act. Our responsibilities under those Standards are
financial statements. Due to the inherent uncertainty
further described in the Auditor’s Responsibilities for the
involved in forecasting and discounting future cash
Audit of the Standalone Financial Statements section
flows, determination of discount and terminal growth
of our report. We are independent of the Company in
rates, which are the basis for computing the value of
accordance with the Code of Ethics issued by the Institute of
goodwill and the assessment of recoverability, these
Chartered Accountants of India (ICAI) together with ethical
are the key judgement areas. In view of the above, the
requirements that are relevant to our audit of the standalone
Company has carried out an impairment assessment
financial statements under the provisions of the Act and the
of goodwill using the value-in-use model which is
Rules thereunder, and we have fulfilled our other ethical
based on the net present value of the forecast earnings
responsibilities in accordance with these requirements and
of the cash generating units. The computation involved
the Code of Ethics. We believe that the audit evidence we
using certain assumptions around discount rates,
have obtained is sufficient and appropriate to provide a
growth rates and cash flow forecasts. Accordingly, this
basis for our opinion.
is considered as the key audit matter.
Key Audit Matters
Key audit matters are those that, in our professional Principal Audit Procedures
judgement, were of most significance in our audit of the We have performed the audit procedures in the
standalone financial statements of the current year. These circumstances as stated above, including:

Annual Report 2020-21 123

 a) Critically reviewing the Company’s assumptions Provision for tax is also based on the presumption
pertaining to externally derived data in relation to of significant estimates and assumptions on the
key inputs, such as, long-term growth rates and allowability / disallowablilty of claims at the assessment
discount rates; level. Accordingly, this is considered as the key audit
matter.
b) Assessed the appropriateness of the forecasted
cash flows based on our understanding of the Principal Audit Procedures
business and sector experience; We have performed audit procedures, which including:

c) Recalculated the weighted average cost of capital a) Obtained understanding of the key uncertain
(WACC) used to discount the cash flows and tax provisions and also obtained information
assessed those rates to be reasonable based on of completed tax assessments and demands
knowledge of the economic environment and the / refunds received by the Company during the
risk premium associated with respective industries financial year 2020-21;
and countries.
b) Critically reviewed the processes and controls in
place over tax assessments and demands / refunds
d) Compared the cash flow forecasts used in the
through discussions with the management’s
impairment assessment prepared by management
internal experts / external consultants and
consultant with the budgeted numbers to the
reviewed the communications with those charged
extent available;
with governance pertaining to this issue;

e) Evaluated the reasonableness of the forecasts c) Involved our tax team to discuss with the
made by the management by comparing past appropriate management to critically evaluate the
forecasts to historical results, where this was key assumptions in estimating the tax provisions
available, and by comparing to the current year and assessed the possible outcome of the
results of the Company; assessment / demands of the disputed claims.
Our tax team considered past precedence and
f) Subjected related key assumptions to sensitivity other rulings in evaluating Company’s position on
analysis; these uncertain tax positions.

g) Evaluated whether the Company’s disclosures d) Assessed whether the Company’s disclosures in
concerning the sensitivity of the impairment Note 31 to the standalone financial statements
assessment to changes in key assumptions, - Contingent liabilities and commitments,
reasonably reflected the risks inherent in the adequately disclose the relevant facts and
valuation of goodwill; circumstances and potential liabilities of the
Company.
h) Skeptically reviewed management’s assumptions,
judgement and the appropriateness of the e) Further, considered the effect of all the information
valuation model used; in respect of uncertain tax positions as at 1st April,
2020 and provision for tax to evaluate whether any
i) Tested the mathematical accuracy of review was necessary to Company’s position on
management’s calculations. these uncertainties.

Our audit procedures did not reveal any negative

Our audit procedures did not reveal material variations.
observations in the matter.
2. Ongoing tax matters, including provision for tax
3. Estimates - Provision for warranty
Computation of provision for warranties and returns
The Company’s unsettled tax position includes matters
involves critical evaluation of historical data with respect
under dispute which involves significant judgment to
to the nature of repair and returns, and estimation of
determine the possible outcome of these disputes. costs in respect of future warranty claims and refunds.
These provisions are estimated using a significant In view of the estimates being based on facts and
degree of management judgement in interpreting circumstances that can change from period to period,
the various relevant rules, regulations and practices. this is considered to be a significant management

124 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

judgement. Accordingly, this is considered as the key Responsibilities of Management and Those
audit matter. Charged with Governance for the Standalone
Financial Statements
Principal Audit Procedures The Company’s Board of Directors is responsible for the
We have performed audit procedures in the matters stated in Section 134(5) of the Act, with respect to
circumstances as stated above, which includes: the preparation of these standalone financial statements
that give a true and fair view of the financial position,
a) Reviewed management’s contract risk financial performance, changes in equity and cash flows of
assessments by enquiries, inspection of minutes the Company in accordance with the accounting principles
of meeting and review of correspondence with generally accepted in India, including the Indian Accounting
customers, where available. As we have the Standards prescribed under Section 133 of the Act. This
knowledge gained through field involvement and responsibility also includes maintenance of adequate
feedback on review of the operation, contract and accounting records in accordance with the provisions of
project reviews, we also assessed the justification the Act for safeguarding of the assets of the Company and
for and the accuracy of provisions; for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
b) Reviewed the recognition and appropriateness making judgments and estimates that are reasonable and
of provisions by re-computing the amounts, prudent; and design, implementation and maintenance of
obtaining management statements, evidence and adequate internal financial controls, that were operating
supporting documents, such as, correspondence effectively for ensuring the accuracy and completeness of
with clients or legal assessments of internal the accounting records, relevant to the preparation and
sources, where available; presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement,
c) Considered the historical accuracy of estimates whether due to fraud or error.
made by management through reviews of actual
facts. In order to gain a complete and clear In preparing the standalone financial statements, the Board of
understanding, additionally performed enquiry Directors is responsible for assessing the Company’s ability
procedures and reviewed relevant documents.
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern
Our audit procedures did not reveal any observations
basis of accounting unless the Board of Directors either
of any material differences.
intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Information Other than the Standalone Financial
Statements and Auditor’s Report Thereon
Those Board of Directors are also responsible for overseeing
The Company’s Board of Directors is responsible for
the Company’s financial reporting process.
the other information. The other information comprises
the information included in the Annual Report, but does
Auditor’s Responsibilities for the Audit of the
not include the standalone financial statements and our
auditor’s report thereon.
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
Our opinion on the standalone financial statements does not whether the standalone financial statements as a whole
cover the other information and we do not express any form are free from material misstatement, whether due to fraud
of assurance conclusion thereon. or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
In connection with our audit of the standalone financial but is not a guarantee that an audit conducted in accordance
statements, our responsibility is to read the other with SAs will always detect a material misstatement when it
information and, in doing so, consider whether the other exists. Misstatements can arise from fraud or error and are
information is materially inconsistent with the standalone considered material if, individually or in aggregate, they could
financial statements or our knowledge obtained in the audit reasonably be expected to influence the economic decisions
or otherwise appears to be materially misstated. If, based of users taken on the basis of these standalone financial
on the work we have performed, we conclude that there is statements.
a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this
regard.

Annual Report 2020-21 125

As part of an audit in accordance with SAs, we exercise We also provide those charged with governance with a
professional judgment and maintain professional skepticism statement that we have complied with relevant ethical
throughout the audit. We also: requirements regarding independence, and to communicate
with them all relationships and other matters that may
• Identify and assess the risks of material misstatement of reasonably be thought to bear on our independence, and
the financial statements, whether due to fraud or error, where applicable, related safeguards.
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient From the matters communicated with those charged with
and appropriate to provide a basis for our opinion. The governance, we determine those matters that were of most
risk of not detecting a material misstatement resulting significance in the audit of the standalone financial statements
from fraud is higher than for one resulting from error, of the current year and are therefore the key audit matters.
as fraud may involve collusion, forgery, intentional We describe these matters in our auditor’s report, unless law
omissions, misrepresentations, or the override of internal or regulation precludes public disclosure about the matter or
control; when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
• Obtain an understanding of internal control relevant to the adverse consequences of doing so would reasonably
the audit in order to design audit procedures that are be expected to outweigh the public interest benefits of such
appropriate in the circumstances. Under Section 143(3) communication.
(i) of the Act, we are also responsible for expressing our
Report on Other Legal and Regulatory Requirements
opinion on whether the Company has adequate internal
1. As required by the Companies (Auditor’s Report) Order,
financial controls system in place and the operating
2016 (the ‘Order’), issued by the Central Government
effectiveness of such controls;
of India in terms of Section 143(11) of the Act, we
give in the Annexure ‘A’, a Statement on the matters
• Evaluate the appropriateness of accounting policies
specified in paragraphs 3 and 4 of the Order, to the
used and the reasonableness of accounting estimates
extent applicable.
and related disclosures made by management;
2. As required by Section 143(3) of the Act, we report that:
• Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based
(a) we have sought and obtained all the information
on the audit evidence obtained, whether a material and explanations which to the best of our
uncertainty exists related to events or conditions that knowledge and belief were necessary for the
may cast significant doubt on the Company’s ability purposes of our audit;
to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw (b) in our opinion, proper books of account as
attention in our auditor’s report to the related disclosures required by law have been kept by the Company
in the standalone financial statements or, if such so far as it appears from our examination of those
disclosures are inadequate, to modify our opinion. Our books;
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future (c) the Balance Sheet, the Statement of Profit and
events or conditions may cause the Company to cease Loss, the Statement of Changes in Equity and the
to continue as a going concern; and Statement of Cash Flows dealt with by this Report
are in agreement with the books of account;
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, (d) in our opinion, the aforesaid standalone financial
and whether the standalone financial statements statements comply with the Indian Accounting
represent the underlying transactions and events in a Standards specified under Section 133 of the Act;
manner that achieves fair presentation.
(e) on the basis of the written representations
We communicate with those charged with governance received from the directors as on 31st March, 2021
regarding, among other matters, the planned scope and taken on record by the Board of Directors, none
timing of the audit and significant audit findings, including of the directors is disqualified as on 31st March,
any significant deficiencies in internal control that we identify 2021 from being appointed as a director in terms
during our audit. of Section 164 (2) of the Act;

126 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

(f) with respect to the adequacy of the internal in its standalone financial statements -
financial controls over financial reporting of the (Refer Note 31 to the standalone financial
Company and the operating effectiveness of statements);
such controls, refer to our separate Report in
Annexure ‘B’; (2) the Company did not have any long-term
contracts including derivative contracts for
(g) with respect to the other matters to be included which there were any material foreseeable
in the Auditors Report in accordance with the losses; and
requirements of Section 197(16) of the Act, as
amended, in our opinion and to the best of our (3) the requirements to transfer amounts to the
information and according to the explanations Investor Education and Protection Fund is
given to us, the remuneration paid by the not presently applicable to the Company.
Company to its directors is in accordance with the
provisions of Section 197 of the Act; and SHARP & TANNAN
Chartered Accountants
(h) with respect to the other matters to be included in Firm’s Registration No.109982W
the Auditor’s Report in accordance with Rule 11 of by the hand of
the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our information
and according to the explanations given to us: Edwin P. Augustine
Partner
(1) the Company has disclosed the impact of Membership No. 043385
pending litigations on its financial position Mumbai, 21st May, 2021 UDIN: 21043385AAAADQ3996

Annual Report 2020-21 127

Annexure ‘A’ to the Independent Auditor’s
Report
(Referred to in paragraph 1 of our report of even date) the Paragraph 3(iii) of the Order is not applicable to
the Company.
(i) (a) The Company has maintained proper records
showing full particulars, including quantitative (iv) According to the information and explanations given
details and situation of fixed assets. to us, the Company has not granted any loan or
given any guarantees or provided any security to the
(b) The Company has a regular programme of parties covered under Section 185 of the Act. Further,
physical verification of its fixed assets by which the Company has not made any investment or given
all fixed assets are verified in a phased manner any loan or given any guarantee or provided any
over a period of three years. In accordance with security within the meaning of Section 186 of the Act.
this programme, a portion of the fixed assets Accordingly, the Paragraph 3(iv) of the Order is not
has been physically verified by the management applicable to the Company.
during the year and no material discrepancies
have been noticed on such verification. In our (v) The Company has not accepted any deposits from the
opinion, this periodicity of physical verification public during the year to which the directives issued
is reasonable having regard to the size of the by the Reserve Bank of India and the provisions of
Company and the nature of its assets. (Refer Sections 73 to 76 and other relevant provisions of the
Note 2 to the standalone financial statements). Act and the rules framed thereunder apply.

(c) According to the information and explanations (vi) The maintenance of cost records has been specified
given to us, the title deeds of immovable by the Central Government under Section 148(1)
properties are in the name of the Company, of the Act. We have broadly reviewed the cost
except, in one case of freehold land acquired records maintained by the Company pursuant to the
consequent to the ‘Scheme of Arrangement’ with Companies (Cost Records and Audit) Rules, 2014,
gross and net carrying amounts of Rs. 0.34 crore as amended, prescribed by the Central Government
and Rs.0.34 crore respectively - (Refer Note 2 to under Section 148(1) of the Act and are of the opinion
the standalone financial statements), in respect that prima facie, the prescribed accounts and records
of which the deeds of conveyance is yet to be have been made and maintained. We have, however,
completed. The Company is in the process of not made a detailed examination of these accounts
complying and basis completion thereof, to and records with a view to determine whether they are
obtain the right of ownership thereon. accurate or complete.

(ii) As explained to us, inventories have been physically (vii) (a) According to the information and explanations
verified by the management during the year. In given to us, the Company is generally regular in
our opinion, the frequency of such verification is depositing undisputed statutory dues including
reasonable. No material discrepancies were noticed provident fund, employees’ state insurance,
on verification between the physical stocks and the income tax, duty of customs, goods and services
book records. tax, cess and any other statutory dues, where
applicable, to the appropriate authorities.
(iii) According to the information and explanations give According to the information and explanations
to us, the Company has not granted loans, secured given to us, there are no arrears of outstanding
or unsecured to companies, firms, limited liability statutory dues as at the last day of the financial
partnerships or other parties covered in the register year for a period of more than six months from
maintained under Section 189 of the Act. Accordingly, the date they became payable.

128 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

(b) According to the information and explanations given to us and the records examined by us, the particulars of
income tax, sales tax, service tax, duty of customs, duty of excise and value added tax as at 31st March, 2021
which have not been deposited on account of a dispute pending, are as under:

Name of the Statute Nature of the Amount Period to which Forum where
disputed dues (` crore)* the amount disputes are
relates Pending
The Income Tax Act, Tax, Interest and 10.38 2010-11, 2011-12 Commissionerate
1961 Penalty 2013-14 and 2014-15 (Appeals)
The Central Sales Tax Tax, Interest and 0.06 1999-2000 High Court
Act, 1956, Local Sales Tax Penalty
126.17 1998-99 to 2001-02 Commissionerate
Acts and Works Contract
2003-04 to 2017-18 (Appeals)
Tax Act and Value Added
Tax Acts 4.40 1996-97, 2000-01, Tribunal
2002-03 to 2008-09,
2010-11 and 2011-12
The Customs Act,1962 Duty, Interest 0.34 2019-20 and 2020-21 Commissionerate
and Penalty (Appeals)
The Integrated Goods Tax and Penalty 0.15 2020-21 Commissionerate
and Services Tax Act, (Appeals)
2017
(*net of pre-deposit paid in getting the stay / appeal admitted)

(viii) According to the information and explanations given the Company by its officers or employees noticed or
to us, the Company has not defaulted in repayment reported during the year nor have we been informed
of loans or borrowings to financial institutions and of such case by management.
banks or dues to debenture holders. The Company
has not taken any loans or borrowings from the (xi) According to the information and explanations given
Government. to us, the managerial remuneration has been paid /
provided in accordance with the requisite approvals
(ix) According to the information and explanations given mandated by the provisions of Section 197 read with
to us, the Company has not raised monies by way Schedule V to the Act.
of initial public offer or further public offer (including
debt instruments). In our opinion and according to (xii) According to the information and explanations
the information and explanations given to us, on an given to us, the Company is not a Nidhi company.
overall basis, the term loan has been applied for the Accordingly, the Paragraph 3(xii) of the Order is not
purpose for which the term loan was obtained. applicable to the Company.

(x) During the course of our examination of the (xiii) According to the information and explanations given
books and records of the Company, carried out to us, all the transactions with the related parties
in accordance with generally accepted auditing are in compliance with Sections 177 and 188 of the
practices in India, and according to the information Act, where applicable. The relevant details of such
and explanations given to us, we have neither come related party transactions have been disclosed in the
across any fraud by the Company or any fraud on standalone financial statements, etc., as required

Annual Report 2020-21 129

 under Indian Accounting Standard (Ind AS) 24, (xvi) According to the information and explanations given
Related Party Disclosures specified under Section to us, the Company is not required to be registered
133 of the Act. under Section 45-IA of the Reserve Bank of India
Act, 1934
(xiv) According to the information and explanations given
.
to us, the Company had not made any preferential
allotment or private placement of shares or fully SHARP & TANNAN
or partly convertible debentures during the year. Chartered Accountants
Accordingly, the Paragraph 3(xiv) of the Order is not Firm’s Registration No.109982W
applicable to the Company. by the hand of

(xv) According to the information and explanations

given to us, the Company has not entered into any
non-cash transactions with directors or persons Edwin P. Augustine
Partner
connected with him during the year. Accordingly,
Membership No. 043385
the Paragraph 3 (xv) of the Order is not applicable to
Mumbai, 21st May, 2021 UDIN: 21043385AAAADQ3996
the Company.

Annexure ‘B’ to the Independent Auditor’s

Report
(Referred to in paragraph 2(f) of our report of even date) adherence to company’s policies, the safeguarding of
its assets, the prevention and detection of frauds and
Report on the Internal Financial Controls under errors, the accuracy and completeness of the accounting
Section 143(3)(i) of the Companies Act, 2013 records, and the timely preparation of reliable financial
(the ‘Act’) information, as required under the Act.
We have audited the internal financial controls over
financial reporting of Crompton Greaves Consumer Auditor’s Responsibility
Electricals Limited (the ‘Company’) as of 31st March, Our responsibility is to express an opinion on the
2021 in conjunction with our audit of the standalone Company’s internal financial controls over financial
financial statements of the Company for the year ended reporting based on our audit. We conducted our audit in
on that date. accordance with the Guidance Note and the Standards
on Auditing, issued by ICAI and deemed to be prescribed
Management’s Responsibility for Internal under Section 143(10) of the Act, to the extent applicable,
Financial Controls to an audit of internal financial controls, both applicable
The Company’s management is responsible for to an audit of Internal Financial Controls and, both issued
establishing and maintaining internal financial controls by the ICAI. Those Standards and the Guidance Note
based on the internal control over financial reporting require that we comply with ethical requirements and plan
criteria established by the Company considering the and perform the audit to obtain reasonable assurance
essential components of internal control stated in the about whether adequate internal financial controls over
Guidance Note on Audit of Internal Financial Controls financial reporting was established and maintained and if
Over Financial Reporting (the ‘Guidance Note’) issued such controls operated effectively in all material respects.
by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation Our audit involves performing procedures to obtain audit
and maintenance of adequate internal financial evidence about the adequacy of the internal financial
controls that were operating effectively for ensuring the controls system over financial reporting and their
orderly and efficient conduct of its business, including operating effectiveness. Our audit of internal financial

130 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

controls over financial reporting included obtaining Inherent Limitations of Internal Financial
an understanding of internal financial controls over Controls Over Financial Reporting
financial reporting, assessing the risk that a material Because of the inherent limitations of internal financial
weakness exists, and testing and evaluating the design
controls over financial reporting, including the possibility
and operating effectiveness of internal control based on
of collusion or improper management override of controls,
the assessed risk. The procedures selected depend on
material misstatements due to error or fraud may occur
the auditor’s judgement, including the assessment of the
risks of material misstatement of the standalone financial and not be detected. Also, projections of any evaluation
statements, whether due to fraud or error. of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal
We believe that the audit evidence we have obtained is financial control over financial reporting may become
sufficient and appropriate to provide a basis for our audit inadequate because of changes in conditions, or that
opinion on the Company’s internal financial controls the degree of compliance with the policies or procedures
system over financial reporting.
may deteriorate.

Meaning of Internal Financial Controls Over

Opinion
Financial Reporting
In our opinion, to the best of our information and
A company’s internal financial control over financial
reporting is a process designed to provide reasonable according to the explanations given to us, the Company
assurance regarding the reliability of financial reporting has, in all material respects, an adequate internal financial
and the preparation of standalone financial statements controls system over financial reporting and such internal
for external purposes in accordance with generally financial controls over financial reporting were operating
accepted accounting principles. A company’s internal effectively as of 31st March, 2021, based on the internal
financial control over financial reporting includes control over financial reporting criteria established by
those policies and procedures that: (1) pertain to the the Company considering the essential components of
maintenance of records that, in reasonable detail,
internal control stated in the Guidance Note issued by
accurately and fairly reflect the transactions and
the ICAI.
dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as
necessary to permit preparation of standalone financial SHARP & TANNAN
statements in accordance with generally accepted
Chartered Accountants
accounting principles, and that receipts and expenditures
Firm’s Registration No.109982W
of the company are being made only in accordance
with authorisations of management and directors of by the hand of
the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised Edwin P. Augustine
acquisition, use, or disposition of the company’s assets Partner
that could have a material effect on the standalone Membership No. 043385
financial statements. Mumbai, 21st May, 2021 UDIN: 21043385AAAADQ3996

Annual Report 2020-21 131

Standalone Balance Sheet
As at 31st March, 2021
` crore
As at As at
Particulars Notes
31st March, 2021 31st March, 2020
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment 2 132.76 125.06
(b) Capital work-in-progress 10.86 19.90
(c) Goodwill 2 779.41 779.41
(d) Other intangible assets 2 2.82 4.50
(e) Financial assets
(i) Investments 3 14.20 14.20
(ii) Others 4 6.15 7.82
(f) Deferred tax assets (net) 22 58.26 50.62
(g) Other non-current assets 5 20.09 22.79
Total non-current assets 1,024.55 1,024.30
(2) Current assets
(a) Inventories 6 517.77 463.61
(b) Financial assets
(i) Investments 7 761.07 539.58
(ii) Trade receivables 8 482.74 458.71
(iii) Cash and cash equivalents 9 252.99 22.97
(iv) Bank balances other than (iii) above 10 341.53 24.09
(v) Others 11 13.16 13.72
(c) Current tax assets (net) 20.05 78.82
(d) Other current assets 12 150.00 118.24
Total current assets 2,539.31 1,719.74
TOTAL ASSETS 3,563.86 2,744.04
II. EQUITY AND LIABILITIES
Equity
(a) Equity share capital 13 125.54 125.46
(b) Other equity 14 1,793.45 1,342.34
Total equity 1,918.99 1,467.80
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
Borrowings 15 298.79 179.72
(b) Provisions 16 21.44 19.11
Total non-current liabilities 320.23 198.83
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings 17 - -
(ii) Trade payables
(a) Due to micro and small enterprises 18 35.59 3.30
(b) Due to creditors other than micro and small
enterprises 18 799.71 633.93
(iii) Other financial liabilities 19 234.75 217.14
(b) Other current liabilities 20 55.35 58.27
(c) Provisions 21 199.24 164.77
Total current liabilities 1,324.64 1,077.41
Total liabilities 1,644.87 1,276.24
TOTAL EQUITY AND LIABILITIES 3,563.86 2,744.04
Significant accounting policies 1
Contingent liabilities and commitments 31
Other notes 32 to 48
The accompanying notes form an integral part of the financial statements
As per our report attached
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

132 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Standalone Statement of Profit and Loss

for the year ended 31st March, 2021
` crore
Particulars Notes 2020-21 2019-20
Income
I. Revenue from operations 23 4,749.95 4,511.97
II. Other income 24 75.63 58.87
III. Total Income (I+II) 4,825.58 4,570.84
IV. Expenses
Cost of materials consumed 25 985.44 979.46
Purchase of stock-in-trade 26 2,283.20 2,211.85
Changes in inventories of finished goods, stock-in-trade
and work-in-progress 27 (38.20) (126.29)
Employee benefits expense 28 336.58 310.95
Finance costs 29 42.91 40.67
Depreciation and amortisation expense 2 29.69 26.79
Other expenses 30 478.24 539.14
Total Expenses (IV) 4,117.86 3,982.57
V. Profit before tax 707.72 588.27
VI. Tax expense:
Current tax (Refer Note 44) 111.36 83.81
Deferred tax 22 (8.38) 9.76
VII. Profit for the year 604.74 494.70
VIII. Other comprehensive income
(i) Items that will not be reclassified to profit or loss
Remeasurements gain / (loss) on defined benefit plans 2.93 (2.88)
(ii) Income tax related to items that will not be reclassified to
profit or loss (0.74) 0.73
Other comprehensive income for the year (net of tax) 2.19 (2.15)
IX. Total comprehensive income for the year 606.93 492.55
X. Earnings per equity share 37
1. Basic (`) 9.64 7.89
2. Diluted (`) 9.56 7.83
Significant accounting policies 1
Other Notes 32 to 48
The accompanying notes form an integral part of the financial statements

As per our report attached

SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

Annual Report 2020-21 133

Standalone Statement of Changes in Equity
for the year ended 31st March, 2021

(A) EQUITY SHARE CAPITAL

As at 31st March, 2021 As at 31st March, 2020
Particulars No. of Shares Amount No. of Shares Amount
` crore ` crore
Balance as at the beginning of the reporting period 62,72,83,972 125.46 62,69,85,920 125.40
Changes in equity share capital during the year 4,07,381 0.08 2,98,052 0.06
Balance as at the end of the reporting period 62,76,91,353 125.54 62,72,83,972 125.46

(B) OTHER EQUITY

` crore
Other
Reserves and Surplus comprehensive
income
Total Other
Particulars Employee Remeasurement
Debenture Equity
Capital Securities stock options Retained gain / (loss) on
redemption
Reserve premium outstanding earnings defined benefit
reserve
account plans
Balance as at 01-04-2019 0.05 6.00 120.83 75.00 770.06 1.14 973.08
Profit for the year 494.70 494.70
Dividends paid including dividend distribution tax (151.17) (151.17)
Securities premium received 5.05 5.05
Amount transferred to Securities premium 2.31 (2.31) -
Amount transferred to Retained earnings (0.11) 0.11 -
Movement in Other comprehensive income for
the year (2.15) (2.15)
Add: Employee compensation expense for the
year (Refer Note 28) 22.83 22.83
Balance as at 31-03-2020 0.05 13.36 141.24 75.00 1,113.70 (1.01) 1,342.34
Profit for the year 604.74 604.74
Dividends paid (188.20) (188.20)
Securities premium received 7.21 7.21
Amount transferred to Securities premium 3.44 (3.44) -
Amount transferred to Retained earnings (0.44) 0.44 -
Movement in Other comprehensive income for
the year 2.19 2.19
Add: Employee compensation expense for the
year (Refer Note 28) 25.17 25.17
Balance as at 31-03-2021 0.05 24.01 162.53 75.00 1,530.68 1.18 1,793.45
As per our report attached
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

134 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Standalone Statement of Cash Flows

for the year ended 31st March, 2021
` crore
Particulars 2020-21 2019-20
[A] CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 707.72 588.27
Adjustments for:
Depreciation and amortisation expense 29.69 26.79
Interest expense 42.91 40.67
Loss on sale of property, plant and equipment 0.16 0.15
Provision for expenses on Employee stock options 25.17 22.83
Net (gain) / loss on sale/ fair valuation of investments (43.48) (33.37)
Interest income (31.15) (23.38)
Unrealised exchange (gain) / loss (net) (3.21) 3.84
20.09 37.53
Cash Generated from operations before working capital changes 727.81 625.80
Adjustments for:
(Increase) / Decrease in trade and other receivables (49.14) 77.56
(Increase) / Decrease in inventories (54.16) (111.23)
Increase / (Decrease) in trade and other payables 203.28 (38.41)
Increase / (Decrease) in provisions 39.72 11.90
139.70 (60.19)
Cash generated from operations 867.51 565.61
Taxes paid (net of refunds) (52.59) (144.54)
Net cash (used in) / generated from operating activities [A] 814.92 421.07

[B] CASH FLOWS FROM INVESTING ACTIVITIES

Add: Inflows from investing activities
Interest received 26.50 20.85
Sale of property, plant and equipment 0.41 1.13
26.91 21.98
Less: Outflows from investing activities
Purchase / (Sale) of current investments (net) 178.02 (23.78)
Increase / (Decrease) in other bank balances and term deposits 317.44 (1.97)
Purchase of property, plant and equipment and intangible assets 20.18 49.40
515.64 23.65
Net Cash (used in) / generated from investing activities [B] (488.73) (1.67)

Annual Report 2020-21 135

Standalone Statement of Cash Flows
for the year ended 31st March, 2021

` crore
Particulars 2020-21 2019-20
[C] CASH FLOWS FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Proceeds from issue of equity shares 7.27 5.15
Proceeds from issue of debentures 300.00 -
307.27 5.15
Less: Outflows from financing activities
Payment of dividend including dividend distribution tax 187.39 150.55
Repayment of debentures 170.00 300.00
Repayment of lease liability 11.90 8.79
Interest paid 34.15 58.58
403.44 517.92
Net Cash (used in) / generated from financing activities [C] (96.17) (512.77)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 230.02 (93.37)
(a) Cash and cash equivalents at beginning of the year 22.97 116.34
(b) Cash and cash equivalents at end of the year 252.99 22.97
(c) Net increase/ (decrease) in cash and cash equivalents (c = b-a) 230.02 (93.37)

Notes:
1 The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting
Standard (Ind AS) 7, Statement of Cash Flows as specified in the Companies (Indian Accounting Standards), Rules,
2015 (as amended).
2 Additions to property, plant and equipment include movements of capital work-in-progress during the year.
3 Figures for the previous year have been regrouped wherever necessary.

As per our report attached

SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

136 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021
Company Overview 2. Defined benefit plans – plan assets measured
Crompton Greaves Consumer Electricals Limited (the at fair value.
‘Company’ or ‘Crompton’) is engaged in the business of
manufacturing, trading, selling and distribution of fans, d) Current vs non-current classification
lighting, pumps and appliances. The Company is a public The Company presents assets and liabilities in
limited company incorporated and domiciled in India and the balance sheet based on current / non-current
has its registered office at Mumbai, India. classification. An asset is treated as current when
it is:
1. Significant Accounting Policies
1) Statement of compliances and basis of preparation • Expected to be realised or intended to be
and presentation sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
a) The Company’s financial statements have been
prepared in compliance with Indian Accounting • Expected to be realised within twelve months
Standards (the ‘Ind AS’) notified under Section after the reporting period; or
133 of the Companies Act, 2013 (the ‘Act’) read • Cash or cash equivalent unless restricted
with Rule 3 of the Companies (Indian Accounting from being exchanged or used to settle a
Standards) Rules, 2015, as amended and other liability for at least twelve months after the
relevant provisions of the Act. reporting period.

b) Basis of presentation All other assets are classified as non-current.

The Balance sheet and the Statement of profit and
A liability is current when:
loss are prepared and presented in the format
prescribed in the Division II of Schedule III to • It is expected to be settled in normal operating
the Act. The Statement of Cash Flows has been cycle;
prepared and presented as per the requirements
• It is held primarily for the purpose of trading;
of Ind AS 7, Statement of Cash Flows. The
disclosure requirements with respect to items in • It is due to be settled within twelve months
the Balance sheet and Statement of profit and after the reporting period; or
loss, as prescribed in the Schedule III to the • There is no unconditional right to defer the
Act, are presented by way of notes forming part settlement of the liability for at least twelve
of the financial statements along with the other months after the reporting period.
notes required to be disclosed under the notified
Accounting Standards and the SEBI (Listing The Company classifies all other liabilities as non-
Obligations and Disclosure Requirements) current.
Regulations, 2015 as amended.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
The financial statements of the Company for the
year ended 31st March, 2021 were approved for e) The operating cycle is the time between the
issue in accordance with the resolution of the acquisition of assets for processing and their
Board of Directors on 21st May, 2021. realisation in cash and cash equivalents. The
Company has identified twelve months as its
c) Basis of preparation operating cycle.
The financial statements have been prepared
under the historical cost convention except for the f) Fair value measurement:
following assets and liabilities which have been Fair value measurements are categorised as
measured at fair value: below based on the degree to which the inputs
to the fair value measurements are observable
1. Financial instruments measured at fair value and the significance of the inputs to the fair value
through profit or loss; and measurement in its entity:

Annual Report 2020-21 137

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

• Level 1:  Level 1 inputs include financial In particular, information about significant areas of
instruments measured using estimates and judgments in applying accounting policies
quoted prices (unadjusted) in that have the most significant effect on the amounts
active markets for identical assets recognised in the financial statements are included in the
or liabilities that the Company can following notes:
access at measurement date;
• Assessment of functional currency [Refer Note 1.4];
• Level 2:  The fair value of financial instruments
that are not traded in an active • Financial instruments [Refer Note 41];
market is determined using valuation • Estimates of useful lives and residual value of
techniques which maximize the use property, plant and equipment and intangible assets
of observable market data and rely [Refer Note 1.5 and 1.6];
as little as possible on entity-specific • Impairment of investments [Refer Note 1.12]
estimate. If all significant inputs
• Valuation of inventories [Refer Note 1.10];
require to fair value an instrument
are observable, the instrument is • Measurement of recoverable amounts of cash-
generating units (Refer Note 38);
included in level 2; and
• Measurement of Defined Benefit Obligation, key
• Level 3: If one or more of the significant
actuarial assumptions (Refer Note 35);
inputs is not based on observable
market data, the instrument is • Provisions and Contingencies [Refer Note 1.13 and
included in level 3. (31)];
• Provision for product warranty [Refer Note 1.13]
Above levels of fair value hierarchy are applied • Recognition of revenue from contracts based on
consistently and generally, there are no transfers stage on completion [Refer Note 1.14]; and
between the levels of the fair value hierarchy unless
• Evaluation of recoverability of deferred tax assets
the circumstances change warranting such transfer.
[Refer Note 1.18].
• Estimates related to Share-based Payments (Refer
2. Rounding of amounts
Note 39).
All amounts disclosed in the financial statements and
notes are presented in crore and have been rounded 4. Foreign currency translation
off to two decimal as per the requirement of Division II of (a) Functional and presentation currency
Schedule III to the Act, unless otherwise stated. Items included in the financial statements of the
Company are measured using the currency of the
3. Key estimates and assumptions primary economic environment in which the entity
The preparation of the Company’s financial statements operates (the ‘functional currency’).
requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenue, The financial statements are presented in Indian
expenses, assets, liabilities and the accompanying Rupee (INR), which is the Company’s functional
disclosures along with contingent liabilities. Uncertainty and presentation currency.
about these assumptions and estimates could result in
outcome that require material adjustments to the carrying (b) Transactions and balances
amount of assets or liabilities affected in future periods. Foreign currency transactions are translated
The Company continually evaluates these estimates into the functional currency using the exchange
and assumptions based on the most recently available rates prevailing at the dates of the transactions.
information. The management believes that the estimates Foreign exchange gains and losses resulting
used in preparation of the financial statements are prudent from the settlement of such transactions and from
and reasonable. the translation of monetary assets and liabilities
denominated in foreign currencies at exchange

138 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

rates prevailing on reporting date are generally associated with the expenditure will flow to the
recognised in Statement of profit and loss. Company.

5. Property, plant and equipment (PPE) (c) Depreciation

(a) Recognition and measurement Depreciable amount for assets is the cost of an
asset or other amount substituted for cost less its
Freehold land is carried at historical cost. All
estimated residual value.
other items of PPE are measured at cost less
accumulated depreciation and any accumulated
Depreciation on PPE (other than leasehold land)
impairment losses, if any.
has been provided based on useful life of the assets
as estimated by the management on Straight Line
The cost of an item of PPE comprises:
Method. The useful lives used are in agreement with
those specified in Schedule II to the Companies
i) its purchase price, including import duties
Act, 2013 except in respect of following category of
and non-refundable purchase taxes, after
tangible assets where the useful life is considered
deducting trade discounts and rebates.
differently based on technical evaluation.
ii) any costs directly attributable to bringing the
- Plant and equipment– maximum 21 years
asset to the location and condition necessary
for it to be capable of operating in the manner - Furniture and fixtures - maximum 15 years
intended by management.
Premium paid on leasehold lands are amortised
PPE which are not ready for intended use as over the period of lease. Buildings constructed
on the date of Balance sheet are disclosed as on leasehold land are depreciated based on the
Capital work-in-progress. management estimate of useful life, where the
lease period is beyond the life of the building. In
Where cost of a part of an asset (asset other cases, buildings constructed on leasehold
component) is significant to total cost of the land is amortised over the primary lease period of
asset and useful life of that part is different the land.
from the useful life of the remaining asset,
useful life of that significant part is determined Depreciation on addition to/deductions from,
separately and such asset component is owned assets is calculated pro rata to the period
depreciated over its separate useful life. of use. Depreciation methods, estimated useful
lives and residual values are reviewed at each
Income and expenses related to the incidental reporting date and the effect of any change in the
operations, not necessary to bring the item estimates of useful life/ residual value is adjusted
to the location and condition necessary for prospectively.
it to be capable of operating in the manner
Gains or losses arising from derecognition of a
intended by management, are recognised in
PPE are measured as the difference between the
Statement of profit and loss.
disposal proceeds and the carrying amount of
Any gain or loss on disposal of an item of the asset and are accordingly recognised in the
PPE is recognised in Statement of profit and Statement of profit and loss.
loss.
6. Intangible assets
(b) Subsequent expenditure (a) Recognition and measurement
Subsequent expenditure is capitalised only, if Intangibles are recognised when it is probable that
it is probable that the future economic benefits the future economic benefits that are attributable

Annual Report 2020-21 139

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

to the asset will flow to the enterprise and the cost (ii)
Development cost
of the asset can be measured reliably. Development expenditure on new product
is capitalised as intangible asset, if all of the
Intangible assets are carried at cost less
following can be demonstrated:
accumulated amortisation and impairment losses,
if any. The cost of an intangible asset comprises i. the technical feasibility of completing
of its purchase price, including any import duties the intangible asset so that it will be
and other taxes (other than those subsequently available for use or sale;
recoverable from the taxing authorities), and any
directly attributable expenditure on making the ii. the Company has intention to complete
asset ready for its intended use. the development of intangible asset and
use or sell it;
Gains and losses on disposals are determined by
comparing proceeds with carrying amount of the iii. the Company has ability to use or sell
asset. These are included in Statement of profit the intangible asset;
and loss within other gains/ (losses).
iv. the manner in which the probable future
The estimated useful life and amortisation
economic benefit will be generated
methods are reviewed at the end of each annual
including the existence of a market for
reporting period, with the effect of any changes in
output of the intangible asset or the
the estimate being accounted for on a prospective intangible asset itself or if it is to be
basis. used internally, the usefulness of the
intangible asset;
(b) Subsequent expenditure
Subsequent expenditure is capitalised only when it v. the availability of adequate technical,
increases the future economic benefits embodied financial and other resources to
in the specific asset to which it relates. complete the development and to use
or sell the intangible asset; and
(c) Amortisation
vi. the Company has ability to measure the
Intangible assets comprise computer software
expenditure attributable to the intangible
purchased, which are not an integral part of the
asset during the development reliably.
related hardware and technical know-how and are
amortised on a straight line basis over a period Development costs on the intangible assets,
of 5 years, which in management’s estimate fulfilling the criteria are amortised over a
represents the period during which the economic period of five years, otherwise are expensed
benefits will be derived from their use. in the period in which they are incurred.

(d) Goodwill (f) Intangibles which are not ready for intended use
Goodwill arising as a result of business as on the date of Balance sheet are disclosed as
combination is not amortised and is tested for Intangibles under development.
impairment every year.
7. Impairment of non-financial assets
(e) Research and development cost
The Company assesses at each reporting date whether
(i) Research cost there is any indication that an asset may be impaired.
Revenue expenditure on research is charged An asset is impaired when the carrying amount of the
to Statement of profit and loss under the asset exceeds its recoverable amount. The recoverable
respective heads of accounts in the period in amount is higher of the asset’s fair value less costs of
which it is incurred. disposal and value in use, which means the present

140 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

value of future cash flows expected to arise from the into account any discount or premium on acquisition
continuing use of the asset and its eventual disposal. and fees or transaction costs that are an integral part of
For the purposes of assessing impairment, assets the effective interest rate. Any difference between the
are grouped at their lowest levels for which there are proceeds (net of transaction costs) and the redemption
separately identifiable cash inflows which are largely amount is recognised in the Statement of profit and
independent of the cash inflows from other assets or loss over the period of borrowings using the effective
groups of assets (cash generating units). Impairment interest rate.
loss is charged to the Statement of profit and loss in
the year in which the asset is identified as impaired. 9. Borrowing costs
The carrying amount of the asset is reduced to its Borrowing costs includes interest and other costs
recoverable amount. incurred in connection with the borrowing of funds
and charged to Statement of profit and loss on the
An impairment loss for an asset is reversed if, and only
basis of effective interest rate. Borrowing costs net of
if, the reversal can be related objectively to an event
any investment income from temporary investment of
occurring after the impairment loss was recognised or
related borrowings that are directly attributable to the
relates to a change in the estimate of the recoverable
acquisition, construction or production of a qualifying
amount in the previous periods. The carrying amount
asset that necessarily takes a substantial period of time
of an asset is increased to its revised recoverable
to get ready for its intended use or sale are capitalised
amount, provided that this amount does not exceed
as part of the cost of the respective asset. All other
the carrying amount that would have been determined
borrowing costs are recognised as expense in the
(net of any accumulated amortisation or depreciation)
Statement of profit or loss in the period in which they
had no impairment loss been recognised for the asset
are incurred.
in prior years.

Goodwill impairment 10. Inventories

For testing of impairment of goodwill, if events Inventories are valued after providing for obsolescence,
or changes in circumstances indicate a potential where considered necessary, as under:
impairment, as part of the review process, the carrying
amount of the Cash Generating Units (CGUs) (including (a) Raw materials, : At lower of cost
allocated goodwill) is compared with its recoverable components, computed, on
amount by the company. The recoverable amount is stores and spare weighted average
the higher of fair value less costs to sell and value in parts basis and net
use, both of which are calculated by the company using realisable value
a discounted cash flow analysis. Calculating the future (b) Work -in-progress : At lower of cost
net cash flows expected to be generated to determine – Manufacturing of materials, plus
if impairment exists and to calculate the impairment appropriate production
involves significant assumptions, estimation and overheads and net
realisable value
judgment. The estimation and judgment involve, but
is not limited to, industry trends including pricing, (c) Finished goods – : At lower of cost
estimating long-term revenues, revenue growth and Manufacturing of materials plus
operating expenses. An impairment loss recognised appropriate production
overheads and net
for goodwill is not reversed in subsequent periods.
realisable value
(d) Finished goods – : At lower of cost
8. Borrowings and loans
Trading computed, on
Borrowings and loans are initially recognised at fair weighted average
value, net of transaction costs incurred. It is subsequently basis and net
measured at amortised cost using the effective interest realisable value
rate method. Amortised cost is calculated by taking

Annual Report 2020-21 141

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

The cost of inventories has been computed to include Initial recognition and measurement
all cost of purchases, cost of conversion and other All financial assets are recognised initially at
related costs incurred in bringing the inventories to their fair value plus, in the case of financial assets
present location and condition. Net realisable value not recorded at fair value through profit or loss,
is the estimated selling price in the ordinary course transaction costs that are attributable to the
of business less the estimated costs of completion acquisition of the financial asset. Purchases or
and the estimated costs necessary to make the sale. sales of financial assets that require delivery
Materials and supplies held for use in the production of assets within a time frame established by
are not written down, if the finished goods in which they regulation or convention in the market place
will be used are expected to be sold at or above cost. (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset.
11. Cash and cash equivalents
Cash and cash equivalents includes cash on hand, call
Subsequent measurement
deposits and other short-term, highly liquid investments
After initial recognition, financial assets
with original maturities of three months or less that are
are measured at Fair value through Other
readily convertible to known amounts of cash and
Comprehensive Income (FVTOCI) or through
which are subject to an insignificant risk of changes in
profit or loss (FVTPL) or amortised cost.
value. Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal and
Debt instruments
usage.
A ‘debt instrument’ is measured at the amortised
cost if both the following conditions are met:
12. Financial instruments
A financial instrument is any contract that gives rise to a) The asset is held within a business model
a financial asset of one entity and a financial liability whose objective is to hold assets for
or equity instrument of another entity. Financial collecting contractual cash flows, and
instruments also include derivative contracts such as
foreign currency forward contracts, interest rate swaps b) Contractual terms of the asset give rise on
and currency options; and embedded derivatives in the specified dates to cash flows that are solely
host contract. payments of principal and interest (SPPI) on
the principal amount outstanding.

(a) Financial assets

Subsequent measurement
Classification Subsequent measurement of debt instruments
The Company classifies its financial assets in the depends on the Company’s business model
following measurement categories: for managing the asset and the cash flow
characteristics of the asset. There are two
i. those measured at amortised cost, and measurement categories into which the Company
classifies its debt instruments:
ii. those to be measured at either fair value
through other comprehensive income • Amortised cost
(FVTOCI) or fair value through profit or loss Assets that are held for collection of
(FVTPL) on the basis of its business model contractual cash flows, where those cash
for managing the financial assets and the flows represent solely payments of principal
contractual cash flow characteristics of the and interest, are measured at amortised
financial asset. cost. A gain or loss on a debt investment

142 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

(unhedged) that is subsequently measured • Continuing involvement that takes the form
at amortised cost is recognised in the of a guarantee over the transferred asset
Statement of profit and loss when the asset is measured at the lower of the original
is derecognised or impaired. Interest income carrying amount of the asset and the
from these financial assets is included in maximum amount of consideration that the
finance income using the effective interest Company could be required to repay.
rate (EIR) method.
• On derecognition of financial asset in
• Fair Value Through Profit or Loss (FVTPL) its entirety, the difference between the
category are measured at fair value with all
carrying amount measured at the date
changes recognised in the Statement of
of derecognition and the consideration
profit and loss.
received is recognised in profit or loss.

De-recognition
• If the Company enters into transactions
A financial asset (or where applicable, a part whereby it transfers assets recognised on
of a financial asset or part of similar assets) is its balance sheet, but retains either all or
primarily derecognised (i.e., removed from the substantially all of the risks and rewards of
Company’s balance sheet) when:
the transferred assets, the transferred assets
• The rights to receive cash flows from the are not derecognized and the proceeds
asset have expired, or received are recognised as a collateralized
borrowing.
• The Company has transferred its rights to
receive cash flows from the asset or has Impairment of financial assets
assumed an obligation to pay the received
cash flows in full without material delay The Company assesses on a forward looking
to a third party under a ‘pass-through’ basis the expected credit losses associated
arrangement; and either (a) the Company with its assets carried at amortised cost. The
has transferred substantially all the risks and impairment methodology applied depends on
rewards of the asset, or (b) the Company has whether there has been a significant increase in
neither transferred nor retained substantially credit risk.
all the risks and rewards of the asset, but
has transferred control of the asset. The Company applies expected credit loss (ECL)
model for recognition and measurement of
• When the Company has transferred its rights impairment loss on the following financial assets
to receive cash flows from an asset or has
and credit risk exposure:
entered into a pass-through arrangement,
it evaluates if and to what extent it has
a) Financial assets that are debt instruments,
retained the risks and rewards of ownership.
and are measured at amortised cost e.g.
When it has neither transferred nor retained
deposits and bank balances
substantially all of the risks and rewards
of the asset, nor transferred control of the
b) Trade receivables - The application of
asset, the Company continues to recognize
simplified approach does not require
the transferred asset to the extent of the
Company’s continuing involvement. In that the Company to track changes in credit
case, the Company also recognizes an risk. Rather, it recognizes impairment
associated liability. The transferred asset loss allowance based on lifetime ECLs at
and the associated liability are measured each reporting date, right from its initial
on a basis that reflects the rights and recognition.
obligations that the Company has retained.

Annual Report 2020-21 143

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

Investments in subsidiaries are carried at cost less the derecognition of the original liability and the
accumulated impairment losses, if any. recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
(b) Financial liabilities Statement of profit and loss.
The Company’s financial liabilities comprise
of borrowings including bank overdrafts and Other financial liabilities
derivative financial instruments, trade payable and These are measured at amortised cost using the
other liabilities. effective interest method.

Classification Offsetting of financial instruments

The Company classifies all financial liabilities as Financial assets and liabilities are offset and the
subsequently measured at amortised cost, except net amount is reported in the balance sheet where
for financial liabilities at fair value through profit or there is a legally enforceable right to offset the
loss. Such liabilities, including derivatives that are recognised amounts and there is an intention
liabilities, shall be subsequently measured at fair to settle on a net basis or realize the asset and
value.
settle the liability simultaneously. The legally
enforceable right must not be contingent on future
Initial recognition and measurement events and must be enforceable in the normal
Financial liabilities are initially measured at fair course of business and in the event of default,
value. In the case of loans and borrowings and insolvency or bankruptcy of the Company or the
payables, financial liability is recognised net of counterparty
directly attributable transaction costs.
Derivative financial instruments
Subsequent measurement
The Company uses derivative financial
Financial liabilities are subsequently measured at instruments, such as foreign currency forward
amortised cost using the EIR method. The EIR is contracts and foreign currency option contracts
a method of calculating the amortised cost of a to manage its exposure to foreign exchange risks.
financial liability and of allocating interest expense
For these contracts, hedge accounting is not
over the relevant period at effective interest rate.
followed and such designated derivative financial
The effective interest rate is the rate that exactly
instruments are initially recognised at fair value on
discounts estimated future cash payments
the date on which a derivative contract is entered
through the expected life of the financial liability,
into and are subsequently re-measured at fair
or, where appropriate, a shorter period.
value through profit or loss. Derivatives are carried
Financial liabilities carried at fair value through as financial assets when the fair value is positive
profit or loss is measured at fair value with all and as financial liabilities when the fair value is
changes in fair value recognised in the Statement negative.
of profit and loss.
Financial guarantee contracts
Derecognition Financial guarantee contracts are recognised
A financial liability is derecognised when the as a financial liability at the time of issuance of
obligation under the liability is discharged or guarantee. A financial guarantee contract is a
cancelled or expires. When an existing financial contract that requires the issuer to make specified
liability is replaced by another from the same payments to reimburse the holder for a loss it
lender on substantially different terms, or the terms incurs because a specified debtor fails to make
of an existing liability are substantially modified, payments when due in accordance with the terms
such an exchange or modification is treated as of a debt instrument.

144 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Financial guarantee contracts issued by the 14. Revenue recognition

Company are initially measured at their fair (a) Revenue from goods and services:
values and, if not designated as at FVTPL, are
The Company recognises revenue from contracts
subsequently measured at the higher of: with customers when it satisfies a performance
obligation by transferring promised goods or
• The amount of loss allowance determined in services to a customer. Revenue is recognised
accordance with impairment requirements of to the extent of transaction price allocated to the
Ind AS 109; and performance obligation satisfied. Performance
obligation is satisfied over time when the transfer
• The amount initially recognised less, when of control of assets (goods or services) to a
appropriate, the cumulative amount of customer is done over time and in other cases,
income recognised. performance obligations satisfied at a point
in time. For performance obligation satisfied
over time, the revenue recognition is done by
13. Provisions, contingent liabilities, contingent assets
measuring the progress towards complete
and commitments
satisfaction of performance obligation and the
A provision is recognised when the Company has a progress is measured in terms of a proportion of
present obligation (legal or constructive) as a result of actual cost incurred to date, to the total estimated
past events and it is probable that an outflow of resources cost attributable to the performance obligation.
will be required to settle the obligation, in respect of
which a reliable estimate of the amount can be made. Income from services rendered is recognised
based on agreements/arrangements with the
Provisions are recognised at the best estimate of the
customers as the service is performed.
expenditure required to settle the present obligation at
the reporting date. If the effect of time value of money is
(b) Dividend income
material, provisions are determined by discounting the
Dividend is recognised as revenue when the right
expected future cash flows.
to receive payment has been established.

A contingent liability is disclosed when there is a

(c) Interest income
possible but not probable obligation arising from past
For all interest bearing financial assets measured at
events, or a present obligation that may, but probably
amortised cost, interest income is recorded using
will not, require an outflow of resources, or a present
the EIR. EIR is the rate that exactly discounts the
obligation whose amount cannot be estimated reliably.
estimated future cash receipts over the expected
Contingent liabilities do not warrant provisions but are life of the financial instrument or a shorter period,
disclosed unless the possibility of outflow of resources where appropriate, to the gross carrying amount
is remote. of the financial asset.

Contingent assets are disclosed in the financial (d) Other income

statements when an inflow of economic benefit is Other items of income are accounted as and when
probable. However, when the realisation of income the right to receive such income arises and it is
is virtually certain, then the related asset is not a probable that the economic benefits will flow to
contingent asset and its recognition is appropriate. the company and the amount of income can be
measured reliably.
Commitments are future liabilities for contractual
expenditure, classified and disclosed as estimated 15. Government grants and incentives
amount of contracts remaining to be extracted on Government incentives, such as export benefits etc.,
capital account and not provided for. are recognised at fair value when there is reasonable

Annual Report 2020-21 145

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

assurance that the Company will comply with the The obligation is measured at the present value of
relevant conditions and the grant will be received. the estimated future cash flows. The discounting
rate used for determining the present value of the
The Government incentives are recognised in profit or obligation under defined benefit plans, is based
loss on a systematic basis over the period in which the on the market yields on government securities as
Company recognizes as expenses. The related costs at the balance sheet date, having maturity periods
for which the incentives are intended to compensate or approximately to the terms of related obligations.
immediately if the costs have already been incurred.
Changes in the present value of the defined
16. Employee benefit plans benefit obligation resulting from Investment plan
amendments are recognised immediately in the
(a) Short-term employee benefits: Statement of profit or loss as past service cost.
All employee benefits falling due wholly within
twelve months of rendering service are classified The retirement benefit obligations recognised in
as short-term employee benefits. Benefits, such the balance sheet represents that present value
as, salaries, wages, short-term compensated of the defined benefit obligation as adjusted for
absences, performance incentives, etc., and the unrecognised past service cost and as reduced
expected cost of bonus, ex-gratia are recognised by the fair value of the scheme of assets.
during the period in which the employee renders
In case of funded plans, the fair value of the
related service.
plan asset is reduced from the gross obligations
under the defined benefit plans to recognize the
(b) Post-employment benefits:
obligation on a net basis.
Defined contribution plans:
The Company’s contribution to defined (c) Long-term employee benefits:
contribution plans, namely State governed Compensated absences which are not expected
provident fund, superannuation fund, employee to occur within twelve months after the end of
state insurance scheme, employee pension the period in which the employee renders the
scheme and labour welfare fund are charged as related services are recognised as a liability at the
an expense based on the amount of contribution present value of the defined benefit obligation at
required to be made and when services are the balance sheet date.
rendered by the employees. The contributions
are classified as Defined Contribution Scheme as (d) Termination benefits:
the company has no further defined obligations Termination benefits are recognised as an
beyond the monthly contributions. expense in the period in which they are incurred.

Defined benefit plans: (e) Share-based Payments:

Defined benefit schemes in the form of gratuity Employees of the Company receive
remuneration in the form of Share-based
liability and post-retirement medical benefits, the
Payments in consideration of the services
cost of providing benefits is determined using
rendered.
the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet Under the equity settled share-based payment,
date, which recognises each period of service as the fair value on the grant date of the award
giving rise to additional unit of employee benefit given to employees is recognised as ‘employee
entitlement and measures each unit separately to benefit expense’ with a corresponding increase
build up the final obligation. in equity over the vesting period. The fair value

146 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

of the options at the grant date is calculated Certain lease arrangements include the options to
by an independent valuer basis Black Scholes extend or terminate the lease before the end of the
model. At the end of each reporting period, lease term. ROU assets and lease liabilities includes
apart from the non-market vesting condition, these options when it is reasonably certain that they
the expense is reviewed and adjusted to reflect will be exercised.
changes to the level of options expected to
vest. When the options are exercised, the The ROU assets are initially recognised at cost,
Company issues fresh equity shares. which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
17. Leases- Operating prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
Ind AS 116, Leases, requires lessees to determine
are subsequently measured at cost less accumulated
the lease term as the non-cancellable period of a
depreciation and impairment losses.
lease adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
The ROU assets are depreciated from the
certain. The Company makes an assessment on the
commencement date on a straight-line basis over
expected lease term on a lease-by-lease basis and the shorter of the lease term and useful life of the
thereby assesses whether it is reasonably certain underlying asset. ROU assets are evaluated for
that any options to extend or terminate the contract recoverability whenever events or changes in
will be exercised. The lease term in future periods is circumstances indicate that their carrying amounts
reassessed to ensure that the lease term reflects the may not be recoverable. For the purpose of
current economic circumstances. impairment testing, the recoverable amount (i.e., the
higher of the fair value less cost to sell and the value-
The Company as a lessee: in-use) is determined on an individual asset basis
The Company’s lease asset classes primarily consist unless the asset does not generate cash flows that
of leases for land and buildings. The Company are largely independent of those from other assets.
assesses whether a contract contains a lease, at In such cases, the recoverable amount is determined
inception of a contract. A contract is, or contains, for the Cash Generating Unit (CGU) to which the
a lease if the contract conveys the right to control asset belongs.
the use of an identified asset for a period of time in
exchange for consideration. To assess whether a The lease liability is initially measured at amortised
contract conveys the right to control the use of an cost at the present value of the future lease
identified asset, the Company assesses whether: payments. The lease payments are discounted using
(i) the contract involves the use of an identified the interest rate implicit in the lease or, if not readily
asset; (ii) the Company has substantially all of the determinable, using the incremental borrowing rates
economic benefits from use of the asset through the in the country of domicile of these leases. Lease
period of the lease; and (iii) the Company has the liabilities are remeasured with a corresponding
right to direct the use of the asset. adjustment to the related ROU asset if the Company
changes its assessment if whether it will exercise an
At the date of commencement of the lease, the extension or a termination option.
Company recognises a Right-of-Use asset (ROU)
and a corresponding lease liability for all lease Lease liability and ROU asset have been separately
arrangements in which it is a lessee, except for presented in the Balance sheet and lease payments
leases with a term of twelve months or less (short- have been classified as financing cash flows.
term leases) and low value leases. For these short-
term and low value leases, the Company recognises 18. Income taxes
the lease payments as an operating expense on a Income tax expense comprises current and deferred
straight-line basis over the term of the lease. tax. It is recognised in Statement of profit and loss

Annual Report 2020-21 147

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

except to the extent that it relates to items recognised Deferred tax assets and deferred tax liabilities are
directly in equity or in other comprehensive income. reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the
(a) Current tax related tax benefit will be realized.
Current tax is determined as the amount of tax
Unrecognised deferred tax assets are reassessed
payable in respect of taxable income for the year.
at each reporting date and recognised to the
The Company’s current tax is calculated using tax
extent that it has become probable that future
rates that have been enacted by the end of the
taxable profits will be available against which they
reporting period.
can be used.
Current tax assets and liabilities are offset only if:
Deferred tax is measured at the tax rates that are
i) there is a legally enforceable right to set off expected to be applied to temporary differences
current tax assets against current tax liabilities when they reverse, using tax rates enacted or
and when they relate to income taxes levied substantively enacted at the reporting date and
by the same taxation authority; and are expected to apply when the related deferred
income tax asset is realized or the deferred income
ii) there is intention either to settle on a net
tax liability is settled.
basis, or to realise the asset and settle the
liability simultaneously. Deferred tax assets and liabilities are offset, only
if, they relate to income taxes levied by the same
(b) Deferred tax taxation authority on the same taxable entity.
Deferred tax is recognised in respect of temporary
differences between the carrying amounts 19. Earnings per share (EPS)
of assets and liabilities for financial reporting Basic EPS is computed by dividing the profit attributable
purposes and the amounts used for taxation to owners of the Company, by using the weighted
purposes. However, deferred tax liabilities are not average number of equity shares outstanding during
recognised if they arise from the initial recognition the period.
of goodwill. Deferred income tax is also not
accounted for if it arises from initial recognition Diluted EPS is computed using the weighted average
of an asset or liability in a transaction other than number of equity and dilutive equity equivalent shares
a business combination that at the time of the outstanding during the period except where the results
transaction affects neither accounting profit nor would be anti-dilutive.
taxable profit (tax loss).
20. Exceptional items
Deferred tax assets are recognised for deductible
temporary differences (if any) to the extent that it is On certain occasions, the size, type or incidence of an
probable that future taxable profits will be available item of income or expense, pertaining to the ordinary
against which they can be used. The existence of activities of the company is such that its disclosure
unused tax losses is strong evidence that future improves the understanding of the performance of the
taxable profit may not be available. Therefore, in Company. Such income or expense is classified as
case of history of recent losses, the Company an exceptional item and accordingly, disclosed in the
recognises a deferred tax asset only to the extent notes to the financial statements.
that it has sufficient taxable temporary difference
or there is convincing other evidence that sufficient 21. Segment accounting
taxable profits will be available against which such (a) Segment accounting policies:
deferred tax asset can be realized.
Segment accounting policies are in line with
the accounting policies of the Company. The

148 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Company identifies primary business segment v) Segment assets and liabilities include those
based on the different risks and returns, the directly identifiable with the respective
organization structure and the internal reporting segments. Unallocable assets and liabilities
systems. Secondary segments are identified represent the assets and liabilities that relate
on the basis of geography in which sales have to the Company as a whole and not allocable
been effected. In addition, the following specific to any segment.
accounting policies have been followed for
segment reporting: (b) Inter-segment transfer pricing:

i) Segment revenue includes sales and other Segment revenue resulting from transactions with
income directly identifiable with / allocable other business segments is accounted on the basis
to the segment including inter-segment of transfer price agreed between the segments.
revenue. Such transfer prices are either determined to yield
a desired margin or agreed on a negotiated basis.
ii) Expenses that are directly identifiable with/
allocable to segments are considered for 22. Statement of cash flows
determining the segment result. Expenses Cash flows are reported using the indirect method,
which relate to the Company as a whole and
whereby profit or loss before tax is adjusted for the
not allocable to segments are included under
effects of transactions of non-cash nature and any
unallocable expenditure.
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing
iii) Income which relates to the Company as
and financing activities of the Company are segregated
a whole and not allocable to segments is
included in unallocable income. based on the available information.

iv) Segment results include margins on inter- Cash and cash equivalents (including bank balances)
segment and sales which are reduced shown in the Statement of cash flows exclude items
in arriving at the profit before tax of the which are not available for general use as at the date of
Company. balance sheet.

Annual Report 2020-21 149

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

2 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

` crore
Gross block (Cost) Depreciation/ Amortisation Net Block
As at 1st Additions Deductions As at 31st Upto For the Deductions Upto As at 31st As at 31st
ASSETS
April, March, 31st March, year 31st March, March, March,
2020 2021 2020 2021 2021 2020
(i)  roperty, plant and equipment
P
Owned assets:
Freehold land 4.41 - - 4.41 - - - - 4.41 4.41
Leasehold land 2.69 - - 2.69 0.75 0.03 - 0.78 1.91 1.94
Buildings:
Owned assets 35.03 10.90 0.01 45.92 6.28 1.78 0.00 8.06 37.86 28.75
Right-of-Use assets 50.75 4.14 - 54.89 9.28 10.28 - 19.56 35.33 41.47
Plant and equipment 65.63 17.00 0.35 82.28 27.58 11.43 0.21 38.80 43.48 38.05
Furniture and fixtures 4.63 0.23 0.12 4.74 2.17 0.56 0.07 2.66 2.08 2.46
Office equipment 11.40 3.35 0.11 14.64 6.21 2.83 0.09 8.95 5.69 5.19
Vehicles 4.44 0.45 0.66 4.23 1.65 0.89 0.31 2.23 2.00 2.79
Sub-total (i) 178.98 36.07 1.25 213.80 53.92 27.80 0.68 81.04 132.76 125.06
(ii) Intangible assets
Goodwill 779.41 - - 779.41 - - - - 779.41 779.41
Subtotal (ii) 779.41 - - 779.41 - - - - 779.41 779.41
(iii) Other Intangibles
Computer software 9.56 0.21 - 9.77 5.11 1.89 - 7.00 2.77 4.45
Technical knowhow 1.90 - - 1.90 1.89 - - 1.89 0.01 0.01
Research and development 0.68 - - 0.68 0.64 - - 0.64 0.04 0.04
Sub-total (iii) 12.14 0.21 - 12.35 7.64 1.89 - 9.53 2.82 4.50
Total (i) + (ii)+(iii) 970.53 36.28 1.25 1,005.56 61.56 29.69 0.68 90.57 914.99 908.97
Notes: (a) Cost of freehold land included ` 0.34 crore (Previous year ` 0.34 crore) for which conveyance is yet to be completed.
(b) Cost / valuation of buildings includes ownership accommodation in various co-operative societies and apartments: ` 0.67 crore;
(Previous year ` 0.67 crore), including 3 shares of ` 100 each, which is in the process of transferring in the Company’s name.
(c) Carrying amount of property, plant and equipment and intangible assets given as collateral for borrowings is ` 785.41 crore;
(Previous year ` 785.44 crore).
` crore
Gross block (Cost) Depreciation/ Amortisation Net Block
As at 1st Additions Deductions As at 31st Upto For the Deductions Upto As at 31st As at 31st
ASSETS
April, March, 31st March, year 31st March, March, March,
2019 2020 2019 2020 2020 2019
(i)  roperty, plant and equipment
P
Owned assets:
Freehold land 4.41 - - 4.41 - - - - 4.41 4.41
Leasehold land 2.69 - - 2.69 0.72 0.03 - 0.75 1.94 1.97
Buildings: - - - - - -
Owned assets 30.27 4.76 - 35.03 4.67 1.61 - 6.28 28.75 25.60
Right-of-Use assets - 50.75 - 50.75 - 9.28 - 9.28 41.47 -
Plant and equipment 54.14 12.81 1.32 65.63 18.18 9.95 0.55 27.58 38.05 35.96
Furniture and fixtures 4.75 0.11 0.23 4.63 1.69 0.57 0.09 2.17 2.46 3.06
Office equipment 8.36 3.27 0.23 11.40 3.86 2.50 0.15 6.21 5.19 4.50
Vehicles 4.18 0.93 0.67 4.44 1.13 0.89 0.37 1.65 2.79 3.05
Sub-total (i) 108.80 72.63 2.45 178.98 30.25 24.83 1.16 53.92 125.06 78.55
(ii) Intangible assets
Goodwill 779.41 - - 779.41 - - - - 779.41 779.41
Subtotal (ii) 779.41 - - 779.41 - - - - 779.41 779.41
(iii) Other Intangibles
Computer software 8.29 1.27 - 9.56 3.39 1.72 - 5.11 4.45 4.90
Technical knowhow 1.90 - - 1.90 1.67 0.22 - 1.89 0.01 0.23
Research and development 0.68 - - 0.68 0.62 0.02 - 0.64 0.04 0.06
Sub-total (iii) 10.87 1.27 - 12.14 5.68 1.96 - 7.64 4.50 5.19
Total (i) + (ii)+(iii) 899.08 73.90 2.45 970.53 35.93 26.79 1.16 61.56 908.97 863.15

150 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

3 NON-CURRENT - FINANCIAL ASSETS - INVESTMENTS

Number of
As at As at
Face Value shares as at
Particulars 31st March, 2021 31st March, 2020
per Share 31st March,
` crore ` crore
2021
Investments in equity instruments (fully paid-up)
Unquoted
At Cost
In Subsidiary companies
Equity shares
Pinnacles Lighting Project Private Limited 10 67,00,000 6.70 6.70
Nexustar Lighting Project Private Limited 10 75,00,000 7.50 7.50
Total 14.20 14.20

Details of unquoted investments:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Aggregate amount of unquoted investments- Book value 14.20 14.20
Aggregate amount of impairment in value of investments - -
Total 14.20 14.20
Note: The investments is in compliance with Section 186(4) of the Companies Act, 2013.

4 NON-CURRENT FINANCIAL ASSETS - OTHERS

` crore
Particulars As at As at
31st March, 2021 31st March, 2020
Security deposits 6.15 6.84
Bank deposits (with maturity period of more than 12 months) - 0.28
Others - 0.70
Total 6.15 7.82
Note: Deposits of ` Nil (Previous year ` 0.28 crore) are under lien with banks.

5 OTHER NON-CURRENT ASSETS

` crore
Particulars As at As at
31st March, 2021 31st March, 2020
Capital advances 6.36 9.28
Less: Allowance for doubtful advances (1.07) (1.07)
5.29 8.21
Others 14.80 14.58
Total 20.09 22.79

Annual Report 2020-21 151

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

6 INVENTORIES (At lower of cost and net realisable value)

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Raw materials 75.44 60.48
Add: Goods-in-transit 3.56 3.55
79.00 64.03
Work-in-progress - manufacturing 23.18 16.65
Finished goods - manufacturing 117.69 90.61
Add: Goods-in-transit 15.06 15.09
132.75 105.70
Stock-in-trade 241.35 236.22
Add: Goods-in-transit 37.05 37.56
278.40 273.78
Stores, spares and packing materials 4.44 3.45
517.77 463.61
Note: Inventories are hypothecated with the bankers against working capital facilities (Refer Note 17).

7 CURRENT FINANCIAL ASSETS - INVESTMENTS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
- Measured at Amortised Cost
Investment in Bonds (Quoted) 31.17 10.50

- Measured at Fair value through Profit and Loss

Investment in Mutual funds (Unquoted) 729.90 529.08
Total 761.07 539.58

152 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Face Value Number of Bonds/ As at As at

Particulars per Bond/ Units as at 31st March, 2021 31st March, 2020
Unit 31st March, 2021 ` crore ` crore
(A) Investment in Bonds (Quoted)
Option-I ISIN INE535H07AZ6 of Market
Linked Debentures of Fullerton India 10,00,000 100 - 10.50
Series 02-2021 ISIN INE535H07BJ8 of
Market Linked Debentures of Fullerton India
Credit Company Limited 10,00,000 100 10.16 -
ISIN INE020B08CY9 of Market Linked
Debentures of Rural Electrification
Corporation Limited 10,00,000 100 10.53 -
ISIN INE062A08173 of Perpetual Bonds of
State Bank of India 10,00,000 100 10.48 -
Total (A) 31.17 10.50
(B) Investment in Mutual funds (Unquoted)
Unquoted
Aditya Birla SL Corporate Bond Fund - Direct
- Growth 100 18,43,365 15.99 -
Aditya Birla SL Floating Rate Fund - Direct
- Growth 100 18,89,691 51.15 15.34
Aditya Birla SL Money Manager Fund - Direct
- Growth 100 1,99,321 5.72 32.07
Axis Banking & PSU Debt Fund Direct -
Growth 1,000 1,16,882 24.52 10.48
Axis Corporate Debt Fund - Direct - Growth 10 3,88,03,524 52.64 -
Axis Treasury Advantage Fund - Direct -
Growth 1,000 - - 33.80
Edelweiss Bharat Bond FOF- April 2030 -
Direct - Growth 10 53,75,690 6.09 -
DSP Corporate Bond Fund - Direct - Growth 10 71,82,341 9.19 -
DSP Low Duration Fund - Direct - Growth 10 2,60,13,822 41.16 15.31
DSP Savings Fund - Direct - Growth 10 - - 15.79
HDFC Money Market Fund - Direct - Growth 1,000 39,868 17.84 24.95
HDFC Ultra Short Term Fund Direct- Growth 10 1,35,71,471 16.20 15.52
ICICI Prudential Corporate Bond Fund -
Direct - Growth 10 47,08,147 11.07 10.13
ICICI Prudential Money Market - Direct -
Growth 100 3,73,914 11.04 18.35
ICICI Prudential Savings Fund - Direct -
Growth 100 - - 25.14
IDFC Banking & PSU Debt Fund - Direct -
Growth 10 85,30,063 16.67 10.57
IDFC Corporate Bond - Direct - Growth 10 2,16,49,892 33.05 -
IDFC Low Duration Fund - Direct - Growth 10 73,14,113 22.42 21.13
IDFC Ultra Short Term Fund - Direct - Growth 10 2,29,63,814 27.49 26.01

Annual Report 2020-21 153

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

Face Value Number of Bonds/ As at As at

Particulars per Bond/ Units as at 31st March, 2021 31st March, 2020
Unit 31st March, 2021 ` crore ` crore
Invesco India Corporate Bond Fund - Direct
- Growth 1,000 1,56,917 41.03 5.24
Invesco India Money Market Fund - Direct -
Growth 1,000 73,693 18.02 17.06
Invesco India Treasury Advantage Fund -
Direct - Growth 1,000 1,92,379 58.71 32.21
Kotak Corporate Bond Fund - Direct - Growth 1,000 1,75,469 52.37 25.70
Kotak Dynamic Bond Fund - Direct - Growth 10 26,26,827 8.02 -
Kotak Floating Rate Fund - Direct - Growth 1,000 2,16,806 25.09 -
Kotak Money Market Fund - Direct - Growth 1,000 5,828 2.03 34.94
Kotak Savings Fund - Direct - Growth 10 - - 8.04
L&T Banking & PSU Debt fund - Direct -
Growth 10 77,62,351 15.61 5.01
L&T Ultra Short Term Fund - Direct - Growth 10 7,44,600 2.61 23.04
Nippon India Dynamic Bond Fund - Direct -
Growth 10 59,05,915 17.93 -
Nippon India Floating Rate fund - Direct -
Growth 10 1,06,41,417 38.29 5.12
Nippon India Money Market - Direct - Growth 1,000 26,852 8.65 33.82
SBI Magnum Ultra Short Duration Fund -
Direct - Growth 1,000 - - 29.84
SBI Savings Fund - Direct - Growth 10 36,34,201 12.43 29.45
Sundaram Corporate Bond Fund - Direct -
Growth 10 32,76,326 10.49 5.02
Tata Treasury Advantage Fund - Direct -
Growth 1,000 47,319 14.76 -
UTI Treasury Advantage Fund - Direct -
Growth 1,000 1,57,334 41.62 -
Total (B) 729.90 529.08
761.07 539.58
(Refer Note 41 A for information about fair value measurement and Note 41 D (ii) for credit risk of investments.)
Details of investments:
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Aggregate amount of quoted investments and market value thereof:
Book value 31.17 10.50
Market value 31.17 10.50

Aggregate amount of unquoted investments:

Book value (accounted based on NAV) 729.90 529.08

154 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

8 CURRENT FINANCIAL ASSETS - TRADE RECEIVABLES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Unsecured
Trade receivables, considered good 482.74 458.71
Trade receivable, considered doubtful 21.24 23.24
503.98 481.95
Less: Allowance for doubtful trade receivables 21.24 23.24
Total 482.74 458.71

9 CURRENT FINANCIAL ASSETS - CASH AND CASH EQUIVALENTS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Balance with banks :
In current accounts 8.98 10.94
In deposit accounts (with less than 3 months maturity) 243.98 12.00
Cash on hand 0.03 0.03
Total 252.99 22.97

10 CURRENT FINANCIAL ASSETS - OTHER BANK BALANCES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Deposits with maturity more than 3 months but less than 12 months 339.03 22.40
Unclaimed dividend account 2.50 1.69
Total 341.53 24.09

11 CURRENT FINANCIAL ASSETS - OTHERS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Security deposits 13.14 12.76
Other receivables - from Related parties 0.02 0.96
Total 13.16 13.72

Annual Report 2020-21 155

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

12 OTHER CURRENT ASSETS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Advance to suppliers 47.21 23.78
Balances with Indirect tax authorities 4.84 15.40
Other recoverables 50.36 39.21
Others 47.59 39.85
Total 150.00 118.24

13 SHARE CAPITAL
As at 31st March, 2021 As at 31st March, 2020
Particulars Amount Amount
Number Number
` crore ` crore
Authorised capital
Equity shares of ` 2 each 65,50,00,000 131.00 65,00,00,000 130.00

Issued, subscribed and paid-up

Equity shares of ` 2 each, fully paid-up 62,76,91,353 125.54 62,72,83,972 125.46
62,76,91,353 125.54 62,72,83,972 125.46

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
As at 31st March, 2021 As at 31st March, 2020
Particulars Amount Amount
Number Number
` crore ` crore
Outstanding at the beginning of the year 62,72,83,972 125.46 62,69,85,920 125.40
Shares issued on account of exercising Employee
stock option plans 4,07,381 0.08 2,98,052 0.06
Outstanding at the end of the year 62,76,91,353 125.54 62,72,83,972 125.46

b. Rights, preferences and restrictions on shares

The Company has one class of share capital, i.e., equity shares having face value of ` 2 per share. Each holder
of equity share is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.

156 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

c. Details of shareholders holding more than 5% shares in the Company

As at 31st March, 2021 As at 31st March, 2020
Particulars
Number % holding Number % holding
Equity shares of ` 2 each fully paid
SBI Mutual Fund 3,84,09,761 6.12% 3,20,52,041 5.11%
Macritchie Investments Pte Ltd   3,76,12,367 5.99% 5,65,38,546 9.01%
Amalfiaco Limited  3,36,67,802 5.36% 10,77,41,623 17.18%
Aditya Birla Sun Life Trustee Private Limited 2,88,55,262 4.60% 3,13,70,834 5.00%

d. Shares reserved for issuance under Stock Option Plans of the Company at face value of ` 2 (Also
Refer Note 39)
As at 31st March, 2021 As at 31st March, 2020
Particulars
Number Amount ` crore Number Amount ` crore
Crompton Stock Option Plan 2016 (ESOP 2016) 26,33,826 0.53 34,15,883 0.68
Crompton Performance Share Plan 1 2016 (PSP 1) 1,06,27,872 2.13 1,07,53,536 2.15
Crompton Performance Share Plan 2 2016 (PSP 2) 30,79,392 0.62 30,86,725 0.62
Crompton Stock Option Plan 2019 (ESOP 2019) 74,96,499 1.50 3,70,000 0.07

e. There are no bonus shares issued/ shares bought back.

f. There are no shares reserved for issue under options and contracts/ commitments for the sale of shares/
disinvestment.

g. The Board of Directors have recommended payment of final dividend of ` 2.50 (Rupees two and Paisa fifty only)
per equity share of the face value of ` 2 each for the financial year ended 31st March, 2021. An interim dividend of
` 3 (Rupees three only) per equity share of the face value of ` 2 each was declared at the Board Meeting held on
22nd October, 2020 and the same was paid on 13th November, 2020. The total dividend for the year including the
final dividend will be ` 5.50 (Rupees five and Paisa fifty only) per equity share of the face value of ` 2 each.

14 OTHER EQUITY
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Capital reserve 0.05 0.05
Securities premium 24.01 13.36
Employee stock option outstanding account 162.53 141.24
Retained earnings 1,530.68 1,113.70
Other comprehensive income 1.18 (1.01)
Debenture redemption reserve 75.00 75.00
Total 1,793.45 1,342.34
Note: For movements in reserves - refer Standalone Statement of Changes in Equity.

Annual Report 2020-21 157

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

Nature and purpose of reserves

Capital reserve
Capital reserve was created on cancellation of shares as per statutory requirement.
Securities premium
Securities premium was created on issue of shares at premium in accordance with Employee Stock Option Plans
(ESOP).
Employee stock option outstanding
The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of
profit and loss with corresponding credit to Employee Stock Options Outstanding Account.
Retained earnings
Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve,
dividends or other distributions paid to shareholders.
Debenture redemption reserve
Debenture redemption reserve is a Statutory Reserve (as per the Companies Act, 2013) created out of profits of the
Company for the purpose of redemption of debentures issued by the Company. The Company is required to maintain
a Debenture Redemption Reserve of 25% of the value of debenture issued, either by a public issue or on a private
placement basis. The amounts credited to the debenture redemption reserve cannot be utilised by the Company
except to redeem debentures. On completion of redemption, the reserve is transfered to retained earnings.

15 FINANCIAL LIABILITIES - BORROWINGS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Measured at amortised cost
i) Non-Current Borrowings
Secured
Debentures 298.79 179.72
298.79 179.72
ii) Current maturities of Borrowings - (Refer Note 19)
Debentures 180.00 170.00
Total 478.79 349.72

158 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Terms of Debentures:
Particulars of Debentures Series C (2016 issue) Series A (2020 issue) Series B (2020 issue)
Face value per debenture (`) 10,00,000 10,00,000 10,00,000
Date of allotment 24 June, 2016
th
29 May, 2020
th
29 May, 2020
th

As at 31 March, 2021 (` crore)

st
180.00 150.00 150.00
As at 31st March, 2020 (` crore) 180.00 - -
Interest 8.95% p.a. payable annually 7.25% p.a. payable annually 7.25% p.a. payable annually
Terms of repayment Due for redemption on Due for redemption on Due for redemption on
24-06-2021 29-05-2023, with call option 29-05-2023, with call option
on 29-11-2021 on 27-05-2022

Debentures are secured by:

(a) Charge on ‘Crompton’ Brand and Registered Trade Marks of the Company; and
(b) Charge by way of equitable mortgage by deposit of title deeds/relevant documents of movable and immovable
properties situated in the State of Maharashtra, Himachal Pradesh and Goa.

16 NON-CURRENT PROVISIONS
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Provision for employee benefits (post medical retirement benefits, compensated
absences) 21.44 19.11
Total 21.44 19.11

17 CURRENT FINANCIAL LIABILITIES - BORROWINGS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Secured
Working capital demand loan from bank - -
Total - -
Note: Working capital demand loan is secured by way of charge on the Company’s inventories and trade receivables.

Annual Report 2020-21 159

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

18 CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Acceptances 101.63 126.61
Due to micro and small enterprises (Refer Note below) 35.59 3.30
Due to creditors other than micro and small enterprises 698.08 507.32
Total 835.30 637.23
Note:
(a) Micro, Small and Medium enterprises have been identified by the Company on the basis of the information
available. Total outstanding dues to suppliers which are outstanding for more than the stipulated period and
other disclosures as per the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at
31st March, 2021. The disclosure pursuant to the said Act is as under:

` crore
31 March,
st
31 March,
st
Particulars
2021/2020-21 2020/2019-20
The principal amount and the interest due thereon remaining unpaid to any
supplier at the end of each accounting year
Principal 35.59 3.30
Interest - -
The amount of interest paid by the buyer in terms of Section 16 of the
MSMED Act, 2006 along with the amount of the payment made to the
supplier beyond the appointed day during each accounting year 3.76 0.54
The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the MSMED Act, 2006 0.01 -
The amount of interest accrued and remaining unpaid at the end of each
accounting year 0.08 0.07
The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise, for the purpose of disallowance as a
deductible expenditure under Section 23 of the MSMED Act, 2006 - -

(b) The information has been given in respect of such vendors to the extent they could be identified as micro and
small enterprises on the basis of information available with the Company.

160 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

19 CURRENT FINANCIAL LIABILITIES - OTHERS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Current maturities of non-convertible debentures (Refer Note 15) 180.00 170.00
Interest accrued but not due on borrowings 30.65 24.12
Security deposits 24.10 23.02
Total 234.75 217.14

20 OTHER CURRENT LIABILITIES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Advances from customers 5.86 8.08
Statutory dues payables 10.26 5.74
Unpaid dividend 2.50 1.69
Others 36.73 42.76
Total 55.35 58.27

21 CURRENT PROVISIONS
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Provision for employee benefits (post medical retirement benefits, compensated
absences) 2.01 2.47
Other provisions (Refer Note below) 197.23 162.30
Total 199.24 164.77

Notes:
` crore
Sales tax / VAT/ Other litigation
(1) Movement of provisions Warranty
Other taxes claims
Carrying amount at the beginning of the year 144.57 12.65 0.06
Additional provision made during the year 56.73 - -
Amounts used during the year (29.55) - -
Unused amounts reversed during the year - - -
Carrying amount at the end of the year 171.75 12.65 0.06

Annual Report 2020-21 161

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

` crore
Movement of provisions Others Total
Carrying amount at the beginning of the year 5.02 162.30
Additional provision made during the year 12.77 69.50
Amounts used during the year (5.02) (34.57)
Unused amounts reversed during the year - -
Carrying amount at the end of the year 12.77 197.23

(2) Nature of provisions:

(a) Product warranties: The Company gives warranties on certain products and services, undertaking to repair /
replace products, which fail to perform satisfactorily during the warranty period. Provision made represents
the amount of the expected cost of meeting such obligation on account of repair / replacement. The timing
of outflows is expected to be within a period of two year.
(b) Provision for sales tax / VAT / other taxes represents liability on account of non-collection of declaration forms
and other legal matters which are in appeal under the Acts / Rules.
(c) Provision for other litigation obligation claims represents liabilities that are expected to materialise in respect
of matters in appeal.
(d) Others represent provision made towards probable cash discount and probable return of goods from
customers.

22 INCOME TAXES
(a) Tax expense recognised in Statement of profit and loss comprises :
` crore
Particulars 2020-21 2019-20
Current income tax charge net of writebacks (Refer Note 44) 111.36 83.81
Deferred tax (asset) / liability (net)
Origination and reversal of temporary differences (8.38) 9.76
Tax expense for the year 102.98 93.57

(b) Amounts recognised in Other comprehensive income

` crore
2020-21 2019-20

Particulars Tax Tax

Before tax (expense)/ Net of tax Before tax (expense)/ Net of tax
benefit benefit
Items that will not be reclassified
to profit or loss
Remeasurements gains / (losses)
on post employment defined benefit
plans and tax thereon 2.93 (0.74) 2.19 (2.88) 0.73 (2.16)
2.93 (0.74) 2.19 (2.88) 0.73 (2.16)

162 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

(c) Reconciliation of effective tax rate

` crore
Particulars 2020-21 2019-20
Profit before tax 707.72 588.27
Applicable tax rate* 25.17% 25.17%
Computed tax expense 178.12 148.06
Others** (75.14) (54.48)
Income tax expense for the current year 102.98 93.57
Effective tax rate 14.55% 15.91%
* The Company has elected to exercise the option permitted under Section 115BAA of the Income tax Act, 1961 as
introduced by the Taxation Laws (Amendment) Act, 2019. Accordingly, the Company has recognised provision for
income tax for year ended 31st March, 2020.
** Others includes refunds, adjustment due to completed assessments and impact of rate change.

(d) Components of deferred tax assets / (liabilities) recognised in Balance sheet and Statement of
profit and loss:

` crore
Balance sheet Statement of profit and loss
Sr.
Particulars As at As at
no. 2020-21 2019-20
31st March, 2021 31st March, 2020
(a) Deferred tax asset on employee stock
option outstanding 38.25 32.89 5.36 (5.67)
(b) Items disallowed under Section
43B of the Income tax Act, 1961 on
payment basis 10.86 9.86 1.00 (1.94)
(c) Allowance for doubtful debts and
advances 5.35 5.85 (0.50) (1.01)
(d) Difference between book depreciation
and tax depreciation (0.72) (1.88) 1.16 2.23
(e) Other temporary differences 4.52 3.90 1.36 (3.37)
Deferred tax income /(expense) 8.38 (9.76)
Net deferred tax assets / (liabilities) 58.26 50.62

Annual Report 2020-21 163

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

(e) Reconciliation of deferred tax assets/(liabilities):

` crore
Sr.
Particulars 2020-21 2019-20
no.
(a) Opening balance as at 1st April 50.62 59.65
(b) Tax (income)/expense during the period recognised in:
(i) Statement of profit and loss in profit or loss 8.38 (9.76)
(ii) Statement of profit and loss under OCI (0.74) 0.73
(c) Closing balance as at 31 March
st
58.26 50.62

23 REVENUE FROM OPERATIONS

` crore
Particulars 2020-21 2019-20
A. Sales of products and services
Sale of products (excluding GST, as applicable)
(i) Electric consumer durables 3,746.98 3,376.12
(ii) Lighting products 986.66 1,115.97
4,733.64 4,492.09
Sale of services
(i) Electric consumer durables 0.52 0.27
(ii) Lighting products 4.47 4.82
4.99 5.09
4,738.63 4,497.18
B. Other operating revenue
Export benefits and other incentives 1.43 6.68
Scrap sales 9.89 8.11
11.32 14.79
Total 4,749.95 4,511.97

24 OTHER INCOME
` crore
Particulars 2020-21 2019-20
Interest income 31.15 23.38
Net gain / (loss) on sale or fair valuation of investments 43.48 33.37
Income from subsidiary companies 0.28 0.41
Other 0.72 1.71
Total 75.63 58.87

164 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

25 COST OF MATERIALS CONSUMED

` crore
Particulars 2020-21 2019-20
Opening stock 64.03 79.32
Add: Purchases 945.92 907.91
Less: Closing stock 79.00 64.03
Raw materials consumed 930.95 923.20
Add: Sub-contracting charges 54.49 56.26
Total 985.44 979.46

26 PURCHASE OF STOCK-IN-TRADE
` crore
Particulars 2020-21 2019-20
Electric consumer durables 1,777.38 1,631.26
Lighting products 505.82 580.59
Total 2,283.20 2,211.85

27 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

` crore
Particulars 2020-21 2019-20
Opening Stock :
Finished goods 105.70 61.76
Stock-in-trade 273.78 181.05
Work-in-progress 16.65 27.03
396.13 269.84
Less:
Closing Stock:
Finished goods 132.75 105.70
Stock-in-trade 278.40 273.78
Work-in-progress 23.18 16.65
434.33 396.13
Changes in inventories:
Finished goods (27.05) (43.94)
Stock-in-trade (4.62) (92.73)
Work-in-progress (6.53) 10.38
(38.20) (126.29)

Annual Report 2020-21 165

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

28 EMPLOYEE BENEFITS EXPENSE

` crore
Particulars 2020-21 2019-20
Salaries, wages, bonus and other benefits 282.26 257.69
Contribution to provident and other funds 12.21 11.19
Staff welfare expenses 16.94 19.24
Share-based Payments to employees (Refer Note 39) 25.17 22.83
Total 336.58 310.95
(Remuneration paid to key management personnel Refer Note 36)

29 FINANCE COSTS
` crore
Particulars 2020-21 2019-20
Interest 42.91 40.67
42.91 40.67

30 OTHER EXPENSES
` crore
Particulars 2020-21 2019-20
Consumption of stores and spares 11.37 14.92
Power and fuel 4.56 5.61
Rent 14.65 13.34
Repair to property, plant and equipment 2.54 2.61
Insurance 3.58 1.91
Rates and taxes 2.24 4.30
Freight and forwarding 135.16 131.33
Packing materials 62.77 60.18
After sales service 44.07 51.27
Sales promotion 51.80 49.40
Corporate social responsibility expenses (Refer Note 33) 10.99 10.01
Advertising 30.40 49.53
Legal and professional charges 58.84 69.14
Miscellaneous expenses 45.27 75.59
Total 478.24 539.14

Payment to the auditors (included in Miscellaneous expenses)

Auditors’ remuneration (excluding taxes)
Audit fees 0.40 0.40
Tax audit fees 0.08 0.08
Other services
(i) Certification work 0.01 0.03
(ii) Others 0.30 0.30
Reimbursement of expenses 0.02 0.06
0.81 0.87

166 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

31 CONTINGENT LIABILITIES AND COMMITMENTS

` crore
Sr. As at As at
Particulars
no. 31st March, 2021 31st March, 2020
A Contingent Liabilities (to the extent not provided for):
(a) Claims against the Company not acknowledged as debts 23.72 23.69
(b) Income tax liability that may arise in respect of matters in appeal 29.01 28.68
(c) Excise duty/ customs duty / service tax liability that may arise in respect of
matters in appeal 5.96 5.60
(d) GST/ Entry Tax/ Sales tax / VAT liability that may arise in respect of matters in
appeal 112.97 57.11
B Commitments:
Estimated amount of contracts remaining to be executed on capital account
and not provided for (net of advances) 6.48 23.02
Notes:
1 The Company does not expect any reimbursements in respect of the above contingent liabilities.
2 It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above, pending
resolution of the arbitration/appellate proceedings.

32 EXPENDITURE ON RESEARCH AND DEVELOPMENT

` crore
Sr.
Particulars 2020-21 2019-20
no.
(a) Capital expenditure 1.40 1.81
Sub-total (a) 1.40 1.81
(b) Revenue expenditure
Raw materials consumed - 0.16
Employee benefits 13.18 9.61
Depreciation and amortisation 3.32 1.52
Other expenses
Consumption of stores and spares 0.89 0.45
Repairs and maintenance 0.02 0.02
Miscellaneous expenses 4.23 4.53
Sub-total (b) 21.64 16.29
Total (a) + (b) 23.04 18.10

Annual Report 2020-21 167

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

33 EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

The particulars of CSR expenditure are as follows:
(a) Gross amount required to be spent by the Company during the year is ` 10.99 crore; (Previous year ` 9.97 crore)
(b) Amount spent during the year is ` 10.99 crore; (Previous year ` 10.01 crore)
` crore
2020-21 2019-20
Sr. Disclosed Yet to be Yet to be
Particulars
no. under In Cash paid in Total In Cash paid in Total
cash cash
i) Construction/acquisition of
assets charged to the statement
of profit and loss - - - - - - -
ii) For purpose other than (i) above Note 30 10.99 - 10.99 10.01 - 10.01
Total 10.99 - 10.99 10.01 - 10.01

34 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 116, LEASES

Company as lessee
A Right-of-Use assets
Buildings
` crore
Cost 2020-21 2019-20
Opening Balance 50.75 -
Additions 4.14 50.75
Disposal / derecognized during the year - -
Closing Balance 54.89 50.75
Accumulated depreciation
Opening Balance 9.28 -
Depreciation expense 10.28 9.28
Disposal / derecognized during the year - -
Closing Balance 19.56 9.28
Closing Balance 35.33 41.47

B Lease liabilities
Buildings
` crore
Particulars 2020-21 2019-20
Opening Balance 43.94 -
Addition 4.14 50.75
Accredition of interest 3.15 1.98
Payments (11.90) (8.79)
Adjustments for disposals - -
Closing Balance 39.33 43.94

168 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

C Amounts recognised in Statement of profit and loss

` crore
Particulars 2020-21 2019-20
Depreciation expense of Right-of-Use assets (Refer Note 2) 10.28 9.28
Interest expense on lease liabilities 3.15 1.98
13.43 11.26

35 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 19, EMPLOYEE BENEFITS
(a) Defined contribution plans (Refer Accounting Policy Note 1.16)
Amount of ` 12.21 crore (Previous year ` 11.19 crore) is recognised as an expense and included in Employee
benefits expense as under the following defined contribution plans: (Refer Note 28)
` crore
Benefits (Contribution to) 2020-21 2019-20
Provident fund 7.47 7.23
Superannuation fund 1.26 1.37
Employee state insurance scheme 0.25 0.29
Labour welfare scheme 0.01 0.01
Gratuity 2.61 1.86
National Pension Scheme 0.61 0.43
Total 12.21 11.19

(b) Defined Benefit Plans (Refer Accounting Policy Note 1.16) as per Actuarial Valuation are as under:
` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
I Change in present value of defined benefit
obligation during the year
Present value of defined benefit obligation at the
beginning of the year 22.85 20.65 6.44 5.84
Amount recognised in statement of profit and
loss
Interest cost 1.56 1.54 0.44 0.46
Current service cost 2.49 2.08 0.45 0.37
Past service cost - - - -
Amount recognised in other comprehensive
income
Actuarial (gains) / losses 0.91 1.17 (0.21) (0.07)
Financial assumptions 0.62 0.89 (0.10) -
Due to experience 0.29 0.28 (0.11) -
Benefits paid (2.31) (2.59) (0.19) (0.16)
Present Value of defined benefit obligation at the
end of the year 25.50 22.85 6.93 6.44

Annual Report 2020-21 169

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
II Change in fair value of plan assets during the
year
Fair value of plan assets at the beginning of the
year 21.10 23.68
Expected return on plan assets 1.44 1.77
Contributions 3.00 - - -
Benefits paid from the fund (0.09) (2.57) - -
Amount recognised in other comprehensive
income - - - -
Actuarial gain / (loss) 3.63 (1.78) - -
Fair value of plan assets at the end of the year 29.08 21.10 - -
III Actual return on plan assets
Expected return on plan assets 1.44 1.77 - -
Actuarial gain / (loss) 3.63 (1.78) - -
Actual return on plan assets 5.07 (0.01) - -
IV Net asset / (liability) recognised in the balance
sheet
Present Value of defined benefit obligation at the
end of the year (25.50) (22.86) (6.93) (6.44)
Fair value of plan assets at the end of the year 29.08 21.10 - -
Asset / (Liability) recognised in the balance sheet 3.58 (1.76) (6.93) (6.44)
V Expenses recognised in the statement of profit
and loss
Current service cost 2.49 2.09 0.45 0.37
Interest cost 0.12 (0.23) 0.44 0.46
Past Service cost - - - -
2.61 1.86 0.89 0.83
VI Expenses recognised in the Other
comprehensive income
Remeasurements (gain) / loss on defined benefit
plans (2.73) 2.95 (0.21) (0.07)
VII The major categories of plan assets as a
percentage of total plan
Insurer managed funds 100% 100% NA NA
VIII Sensitivity analysis for significant
assumptions:
Increase/(Decrease) on present value of defined
benefits obligation at the end of the year
1% increase in discount rate (1.56) (1.35) (0.85) (0.79)
1% decrease in discount rate 1.76 1.51 1.08 1.01
1% increase in salary escalation rate 1.75 1.51 - -

170 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
1% decrease in salary escalation rate (1.58) (1.37) - -
1% increase in employee turnover rate (0.04) 0.01 - -
1% decrease in employee turnover rate 0.03 (0.01) - -
1% increase in Medical inflation rate - - 1.09 1.01
1% decrease in Medical inflation rate - - (0.86) (0.80)
IX Maturity profile of defined benefit obligations
Within the next 12 months 2.31 3.21 - -
Between 1 and 5 years 11.41 8.51 - -
Between 5 and 10 years 11.78 11.13 - -
X Actuarial assumptions
Discount rate 6.44% 6.82% 6.91% 6.81%
Expected Return on Plan Assets (p.a.) 6.44% 6.82% N.A N.A
Employee turnover rate 6.00% 6.00% 6.00% 6.00%
Salary escalation 6.00% 6.00% N.A N.A
Mortality pre retirement rate Indian Indian Indian Indian
Assured Lives Assured Lives Assured Lives Assured Lives
Mortality Mortality Mortality Mortality
(2006-08) (2006-08) (2006-08) (2006-08)
Mortality post retirement rate N.A N.A Indian Indian
Assured Lives Assured Lives
Mortality Mortality
(2006-08) (2006-08)
Medical premium inflation rate N.A N.A 2% 2%
(c) 
The sensitivity analyses above have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the year and may not be representative of the actual change. It is based
on a change in the key assumption while holding all other assumptions constant. When calculating the
sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet
has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not
change compared with the previous year.

(d) 
The Company makes contributions to the Gratuity Trust,  which manages the investment. The Trust is  a
funded defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested
employees at retirement, death while in employment or on termination of employment as per the Company’s
Gratuity Scheme. Vesting occurs upon completion of five years of service.

(e)
The Company provides post retirement medical benefits to qualifying employees.

(f) 
The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out
at 31st March, 2021 and 31st March, 2020. The present value of the defined benefit obligation and the related
current service cost and past service cost, were measured using the Projected Unit Credit Method.

(g) 
Discount rate is based on the prevailing market yields of Indian Government securities as at the balance
sheet date for the estimated term of the obligations.

Annual Report 2020-21 171

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

(h) 
Expected rate of return on the plan assets is based on the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

(i) 
The Company expects to fund ` Nil towards its gratuity plan during the year 2021-22.

(j) 
The salary escalation rate considered in the actuarial valuation is arrived after taking into consideration the
seniority, the promotion, inflation and other relevant factors.

36 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 24, RELATED PARTY
DISCLOSURES
i) List of related parties over which control exist:
Name of the subsidiary companies (wholly owned):
1 Pinnacles Lighting Project Private Limited
2 Nexustar Lighting Project Private Limited (from 2nd January, 2019)

ii) Other Related Parties:

1 ASK Wealth Advisors Private Limited
2 Crompton (CSR) Foundation

iii) Name of Post employment benefit plans with whom transactions were carried out during the
year:
1 Crompton Greaves Consumer Electricals Limited Employees’ Gratuity Trust
2 Crompton Greaves Consumer Electricals Limited Employees’ Superannuation Fund

iv) Key Management Personnel:

1 Mr. H. M. Nerurkar, Chairman and Independent Director
2 Mr. D. Sundaram, Independent Director
3 Mr. P. M. Murty, Independent Director
4 Ms. Smita Anand, Independent Director
5 Ms. Shweta Jalan, Non-Executive Director
6 Mr. Sahil Dalal, Non-Executive Director
7 Mr. Promeet Ghosh, Non-Executive Director
8 Mr. Shantanu Khosla, Managing Director
9 Mr. Mathew Job, Executive Director (from 22nd January, 2021) and Chief Executive Officer
10 Mr. Sandeep Batra, Chief Financial Officer
11 Ms. Pragya Kaul, Company Secretary

172 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

v) Details of related party transactions:

` crore
Sr.
Nature of transaction 2020-21 2019-20
no.
1 Services received
ASK Wealth Advisors Private Limited 0.20 0.19
Total 0.20 0.19
2 Services rendered
Pinnacles Lighting Project Private Limited 0.14 0.20
Nexustar Lighting Project Private Limited 0.14 0.20
Total 0.28 0.40
3 Sale of products
Pinnacles Lighting Project Private Limited 0.02 -
Nexustar Lighting Project Private Limited 0.01 -
Total 0.03 -
4 Contributions (Employer's) to Post Retirement Funds
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust 3.00 -
Crompton Greaves Consumer Electricals Limited Employees'
Superannuation Fund 1.26 1.37
Total 4.26 1.37
5 Compensation to Key Management Personnel
Short-term benefits 15.49 19.13
Share-based Payments (Refer Note b below) 17.99 19.39
Director's sitting fees 0.42 0.26
Commission 0.72 0.62
Total 34.62 39.40
6 Donations paid
Crompton (CSR) Foundation 9.96 0.46
Total 9.96 0.46
Notes:
a) Liabilities for post retirement benefits being Gratuity, Leave encashment and Post retirement medical
benefits are provided on actuarial basis for the Company as a whole. The amount pertaining to Key
management personnel are not included above.
b) The Company has granted shares under various Schemes to the eligible Key Management Personnel.
The amount mentioned is the fair value of the grant charged to Statement of profit and loss.

Annual Report 2020-21 173

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

vi) Amount due to / from related parties

` crore
Sr. As at As at
Nature of transaction
no. 31st March, 2021 31st March, 2020
1 Other Receivable
Pinnacles Lighting Project Private Limited 0.02 0.48
Nexustar Lighting Project Private Limited 0.01 0.48
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust 3.58 -
Total 3.61 0.96
2 Other Payable
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust - 1.76
Crompton Greaves Consumer Electricals Limited Employees'
Superannuation Fund 0.10 0.10
Total 0.10 1.86
Notes:
a) All the related party contracts/ arrangements have been entered on arms’ length basis.
b) The amount of outstanding balances as shown above are unsecured and will be settled/ recovered in
cash.

37 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 33, EARNINGS PER
SHARE
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company
by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of
Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
2020-21 2019-20
(a) Basic earnings per share
Numerator for earnings per share
Profit after tax ` crore 604.74 494.70
Denominator for earnings per share
Weighted number of equity shares outstanding during the
year Nos 62,73,66,505 62,70,96,946
Earnings per share - Basic (one equity share of ` 2 each) ` 9.64 7.89
(b) Diluted earnings per share
Numerator for earnings per share
Profit after tax ` crore 604.74 494.70
Denominator for earnings per share

174 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

2020-21 2019-20
Weighted number of equity shares outstanding for basic EPS
during the year Nos 62,73,66,505 62,70,96,946
Add: Weighted average number of potential equity shares on
account of Employee Stock Option Schemes Nos 53,40,705 48,68,618
Weighted number of equity shares outstanding for diluted
EPS during the year Nos 63,27,07,210 63,19,65,564
Earnings per share - Diluted (one equity share of ` 2 each) ` 9.56 7.83

38 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 36, IMPAIRMENT OF

ASSETS
For the purpose of impairment testing, goodwill is allocated to the Company’s operating division (not at segment
level), which is not higher than the Company’s operating segments. The aggregate carrying amounts of goodwill
allocated to each unit are as follows:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Electric Consumer Durables 590.10 590.10
Lighting Products 189.31 189.31
Total 779.41 779.41

The recoverable amount is based on a value-in-use calculation using the discounted cash flow method. The value-
in-use calculation is made using pre-tax budgeted EBITDA projections of the next five years which is considered
by the Board as a reasonable period.

The key assumptions used in value-in-use calculations are as follows:

a) Earnings (before interest and tax) margin: The margins have been estimated based on past experience after
considering incremental revenue and savings from the efficiencies and cost saving initiatives driven by the
Company.
b) Discount rate: Discount rate reflects the current market assessment of the risks specific to a cash generating
unit and is estimated based on the weighted average cost of capital.
c) Long-term growth rate: The growth rates used are in line with the long-term average growth rates of the
Company and are consistent with the internal / external sources of information.
The assumptions used are reviewed annually as part of management’s budgeting and strategic planning
cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions
reflect the Management’s past experience as their assessment of future trends, and are consistent with
external / internal sources of information.
Based on the above assumptions and analysis, no impairment was identified for any of the cash generating
unit as at 31st March 2021 and 31st March, 2020 as the recoverable value of the cash generating unit exceeded
the carrying value.
The Company has also performed sensitivity analysis calculations on the projections used and discount rate
applied. The Company has concluded that, given the significant headroom that exists, and the results of the
sensitivity analysis performed, there is no significant risk that reasonable changes in any key assumptions
would cause the carrying value of goodwill to exceed its value in use.

Annual Report 2020-21 175

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

39 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 102, SHARE-BASED

PAYMENTS
Employee stock options - equity settled
(a) The Members of the Company have approved by way of postal ballots grant of Employee stock options under
various Schemes. The plan envisaged grant of shares to eligible employees at market price/pre-determined
value as determined by the Nomination and Remuneration Committee (NRC) of the Board of Directors from
time to time.
Disclosures:
` crore
Particulars 31st March, 2021 31st March, 2020
Charge for the year 25.17 22.83
Employee Stock option outstanding 162.53 141.24

(b) The position of the existing schemes is summarized as under -

31st March, 2021 31st March, 2020

Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
Date of Shareholder's 19th 22nd 22nd 22nd 19th 22nd 22nd 22nd
approval January, October, October, October, January, October, October, October,
2020 2016 2016 2016 2020 2016 2016 2016
Total number of
options approved
under ESOS 98,00,000 40,00,000 1,09,68,057 31,33,731 48,00,000 40,00,000 1,09,68,057 31,33,731
Vesting requirements 1-5 Years 1-5 Years 1-10 Years 1-10 Years 1-5 Years 1-5 Years 1-10 Years 1-10 Years
Exercise price or Exercise Price Exercise Price Exercise Price Exercise Price
pricing is the closing is the closing is the closing is the closing
formula (`) market price market price market price market price
on the Stock on the Stock on the Stock on the Stock
Exchange, as Exchange, as Exchange, Exchange,
on the day prior on the day prior 92.83 185.66 as on the as on the 92.83 185.66
to the date on to the date on day prior to day prior to
which the NRC which the NRC the date on the date on
approves the approves the which the NRC which the NRC
Grant. Grant. approves the approves the
Grant. Grant.
Maximum term of Options granted Options granted Options granted under Options Options Options granted under
Options granted under ESOP under ESOP PSP 1 and PSP 2 would granted under granted under PSP 1 and PSP 2 would
(years) 2019 would vest 2016 would vest vest not earlier than one ESOP 2019 ESOP 2016 vest not earlier than one
not earlier than not earlier than year and not later than would vest not would vest not year and not later than
one year and one year and 10 years from the date earlier than earlier than 10 years from the date
not later than 5 not later than 5 of grant one year and one year and of grant
years from the years from the not later than 5 not later than 5
date of grant. date of grant. years from the years from the
date of grant. date of grant.
Source of shares Primary
(Primary, Secondary or
combination)
Variation in terms of There have been no variations in the terms of the options
options

176 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

(c) Options movement during the year:

2020-21 2019-20
Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
No. of options
outstanding at the
beginning of the year 3,70,000 34,15,883 1,07,53,536 30,86,725 - 31,33,769 1,09,68,057 31,33,731
No. of options granted
during the year 71,62,750 - - - 3,70,000 10,10,000 - -
No. of options forfeited /
lapsed during the year 3,894 5,07,033 25,664 7,333 - 4,79,834 1,64,521 47,006
Number of options
vested but not exercised
at the end of the year 19,249 17,63,826 1,06,27,872 30,79,392 - 13,65,883 50,50,147 14,57,184
Number of options
exercised during the
year 32,357 2,75,024 1,00,000 - - 2,48,052 50,000 -
Money realised by
exercise of options (`) 83,69,138 5,50,88,628 92,83,000 - - 4,68,48,804 46,41,500 -
No. of options
outstanding at the end
of the year 74,96,499 26,33,826 1,06,27,872 30,79,392 3,70,000 34,15,883 1,07,53,536 30,86,725
No. of options
exercisable at the end of
the year 19,249 17,63,826 1,06,27,872 30,79,392 - 13,65,883 50,50,147 14,57,184
Weighted Average
Remaining Contractual
Life (in years) 7.92 4.15 3.55 3.52 8.09 5.31 4.91 4.90
(d) Weighted average information for year:
2020-21 2019-20
Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
Weighted average
exercise price of
options granted during
the year whose
Exercise price equals 405.95 - - - 264.73 258.65 - -
market price (`)
Exercise price is greater - - - - - - - -
than market price (`)
Exercise price is less - - - - - - - -
than market price (`)
Weighted average
fair value of options
granted during the
year whose
Exercise price equals 160.01 - - - 95.76 100.56 - -
market price (`)
Exercise price is greater - - - - - - - -
than market price (`)
Exercise price is less - - - - - - - -
than market price (`)

Annual Report 2020-21 177

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

(e) The Black-Scholes Valuation Model has been used for computing weighted average fair value considering
the following inputs:-
2020-21 2019-20
Particulars
ESOP 2019 ESOP 2019 ESOP 2016
Price of the underlying share in market at the time of the option
grant (`) 405.95 264.73 258.65
Exercise price (`) 405.95 264.73 258.65
Risk free interest rate (based on government securities) 5.64% 6.20% 6.49%
Expected life (years) 5.64 5.00 5.76
Expected volatility 33.25% 31.39% 30.63%
Dividend yield 0.49% 0.75% 0.77%

(f) Number and Weighted Average Exercise Price of Options

2020-21 2019-20
Particulars Weighted Average Weighted Average
Number of options Number of options
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 1,76,26,144 137.24 1,72,35,557 129.18
Granted during the year 71,62,750 405.95 13,80,000 263.10
Forefeited during the year 5,43,924 229.52 6,91,361 172.17
Exercised during the year 4,07,381 178.56 2,98,052 172.76
Expired during the year - - - -
Outstanding at the end of the year 2,38,37,589 215.17 1,76,26,144 137.24
Exercisable at the end of the period 1,54,90,339 123.86 78,73,214 127.59

(g) Weighted average share price of options exercised during the year is ` 375.04 (Previous year ` 244.21).

40 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 108, OPERATING

SEGMENTS
A. General Information
(i) Basis of identifying operating segments :
Operating segments are identified as those components of the Company (a) that engage in business
activities to earn revenues and incur expenses including transactions with any of the Company’s other
components; (b) whose operating results are regularly reviewed by the Board of Directors to make
decisions about resource allocation and performance assessment and (c) for which discrete financial
information is available.

The Company has two reportable segments as described under ‘Segment Composition’ below. The
nature of products and services offered by these businesses are different and are managed separately
given the different sets of technology and competency requirements.

(ii) Reportable segments :

An operating segment is classified as reportable segment if reported revenue (including inter-segment
revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all the
operating segments.

178 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

(iii) Segment profit :

Performance of a segment is measured based on segment profit (before interest and tax), as included
in the internal management reports that are reviewed by the Company’s Board of Directors.

(iv) Segment composition :

Electric Consumer Durables comprises the product categories of Fans, Pumps and Appliances.
Lighting products comprises of Luminaires and Light Sources.

B. Information about reportable segments:

` crore
2020-21 Reportable segments
Electric
Lighting
Particulars Consumer Total
Products
Durables
Revenue
External Customers 3,757.13 992.82 4,749.95
Inter-segment - - -
Total revenue 3,757.13 992.82 4,749.95
Segment profit 739.22 116.14 855.36
Segment profit includes:
Depreciation and amortization expense 7.78 6.52 14.30
Segment assets 912.83 386.80 1,299.63
Segment liabilities 689.63 373.91 1,063.54
Other disclosures
Capital expenditure 17.71 4.56 22.27

` crore
2019-20 Reportable segments
Electric
Lighting
Particulars Consumer Total
Products
Durables
Income
External Customers 3,389.04 1,122.93 4,511.97
Inter-segment - - -
Total income 3,389.04 1,122.93 4,511.97
Segment profit 673.10 68.00 741.10
Segment profit includes:
Depreciation and amortization expense 4.92 8.39 13.32
Segment assets 721.88 478.23 1,200.11
Segment liabilities 479.17 384.08 863.25
Other disclosures
Capital expenditure 37.36 14.95 52.31

Annual Report 2020-21 179

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

C. Reconciliations of information on reportable segments

` crore
Particulars 2020-21 2019-20
(a) Income
Total income for reportable segments 4,749.95 4,511.97
Elimination of inter-segment revenue - -
Total income (Refer Note 23) 4,749.95 4,511.97

(b) Profit before tax

Total profit before tax for reportable segments 855.36 741.10
Unallocated amounts:
Expense on Employee Stock Option Scheme (25.17) (22.83)
Finance costs (42.91) (40.67)
Other unallocable expenditure net of unallocable Income (79.56) (89.33)
Total profit before tax from operations as reported in Statement
707.72 588.27
of profit and loss

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
(c) Assets
Total assets for reportable segments 1,299.63 1,200.11
Other unallocated amounts
Goodwill 779.41 779.41
Other assets 1,426.56 713.90
Deferred tax assets (net) 58.26 50.62
Total assets as reported in Balance sheet 3,563.86 2,744.04
(d) Liabilities
Total liabilities for reportable segments 1,063.54 863.25
Other unallocated amounts
Borrowings 478.79 349.72
Other liabilities 102.54 63.27
Total liabilities as reported in Balance sheet 1,644.87 1,276.24

D. Disaggregation of revenue based on products

Information given above concerning reportable segment-wise revenue are sufficient to meet the required disclosures
under Ind AS 115, Revenue from Contracts with Customers, with respect to disaggregation of revenue.

E. Geographic information
The Company mainly caters to Indian Market, accordingly, secondary information/ geographical segment is
not applicable.

F. Information about major customers

There are no customers having revenue exceeding 10% of total revenues.

180 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

41 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 107, FINANCIAL

INSTRUMENTS – DISCLOSURES
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.
` crore
Carrying amount Fair value
As at 31st March, 2021 FVTPL Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Other non-current financial assets
Security deposits 6.15 6.15
In Deposit accounts- bank deposits
with maturity beyond 12 months - -
Others
Cash and cash equivalents 252.99 252.99
Bank balance other than cash and
cash equivalents 341.53 341.53
Current investments 761.07 761.07 761.07 761.07
Trade receivables 482.74 482.74
Other current financial assets 13.16 13.16
761.07 1,096.57 1,857.64 - 761.07 - 761.07
Financial liabilities
Borrowings 478.79 478.79
Trade payables 835.30 835.30
Other current financial liabilities 54.75 54.75
- 1,368.84 1,368.84 - - - -
` crore
Carrying amount Fair value
As at 31st March, 2020 FVTPL Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Other non-current financial assets
Security deposits 6.84 6.84
In Deposit accounts- bank deposits
with maturity beyond 12 months 0.28 0.28
Others 0.70 0.70
Cash and cash equivalents 22.97 22.97
Bank balance other than cash and
cash equivalents 24.09 24.09
Current investments 539.58 539.58 539.58 539.58
Trade receivables 458.71 458.71
Other current financial assets 13.72 13.72
539.58 527.31 1,066.89 - 539.58 - 539.58
Financial liabilities
Borrowings 349.72 349.72
Trade payables 637.22 637.22
Other current financial liabilities 47.14 47.14
- 1,034.08 1,034.08 - - - -

Annual Report 2020-21 181

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

B. Fair value hierarchy

The fair value of financial instruments as referred to in note (A) above have been classified into three
categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority
to unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: Quoted prices for identical instruments in an active market;

• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
• Level 3: Inputs which are not based on observable market data.
C. 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 Significant Inter-relationship
unobservable between significant
inputs unobservable inputs and
fair value measurement
Derivative The Company has used discounted mark Not applicable Not applicable
instruments to market of forward contracts using current
- forwards forward rates for remaining tenure of the
foreign forward contract as provided by respective
exchange banks.
contracts
Derivative Fair value of foreign currency options Not applicable Not applicable
instruments - contract is provided by bank’s with whom the
options foreign derivatives are entered into.
exchange
contracts
Investment in The fair value of the units of mutual fund Not applicable Not applicable
mutual funds scheme are based on net asset value at the
reporting date.
Non current Discounted cash flows: The valuation Not applicable Not applicable
financial model considers the present value of
assets and expected receipt/ payment discounted using
liabilities appropriate discounting rates.
measured at
amortised cost

182 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

D. Financial risk management

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. Company has constituted a Risk Management Committee (RMC)
for identification, evaluation and mitigation of operations, strategic and external risks. RMC has the overall
responsibility for monitoring and recovering the Risk Management Plan and associated practices of the
Company.
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 RMC 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 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.

i. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations
in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest
bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings. The interest rate profile of the Company’s interest-
bearing financial instruments as reported to the management of the Company is as follows.

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Fixed-rate instruments
Financial assets
Bank deposits 583.01 34.68
Total 583.01 34.68
Financial liabilities
Non-current borrowings 298.79 179.72
Current maturities of non-current borrowings 180.00 170.00
Total 478.79 349.72

Annual Report 2020-21 183

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

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.

ii. 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, investment in mutual funds and cash and cash equivalents.The Company makes provision
on trade receivables based on Expected Credit loss (ECL) method based on provision matrix.

Trade receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The Company has a detailed review mechanism of overdue trade receivables at
various levels in the organisation to ensure proper attention and focus on realisation.

Summary of the Company’s exposure to credit risk by age of the outstanding from various
customers is as follows:
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Not past due 399.62 276.56
Past due 1–360 days 69.39 164.49
Past due 361- 720 days 13.73 17.66
more than 720 days - -
482.74 458.71

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company
to determine incurred and expected credit losses. Management believes that the unimpaired amounts
that are past due are still collectible in full, based on historical payment behaviour and extensive analysis
of customer credit risk.

The movement in the allowance for impairment in respect of trade receivables during the year was
as follows:
Particulars ` crore
Balance as at 1 April,2019
st
19.64
Impairment loss recognised/ (reversed) 27.96
Write-off of bad debts (24.36)
Balance as at 31 March, 2020
st
23.24
Impairment loss recognised 12.14
Write-off of bad debts (14.14)
Balance as at 31 March, 2021
st
21.24

184 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Cash and cash equivalents and bank deposits

The Company held cash and cash equivalents and bank deposits with banks and financial institutions.
The credit worthiness of such banks and financial institutions is evaluated by the management on an
on-going basis and is considered to be good. Investment of surplus funds are made in bank deposits
and other risk free securities.

Derivatives
The derivatives (forwards and options for foreign currency payments) are entered into with banks and
financial institution counterparties with good credit ratings.

Investment in mutual funds

The Company limits its exposure to credit risk by investing only with counterparties that have a good
credit rating. The Company does not expect any losses from non performance by these counter parties.

Other than trade receivables, the Company has no other financial assets that are past due but not
impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due at reasonable price. The Company manages its liquidity risk by ensuring, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company monitors cash flow requirements and aims at optimising its cash return on investments and
to maintain the level of its cash and bank balance and other highly marketable mutual fund investments
at an amount in excess of expected cash outflows on financial liabilities.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
contractual cash flows are gross and undiscounted, and include estimated interest payments.

` crore
Contractual cash flows
More
As at 31st March, 2021 Carrying 1 year or
Total 1-2 years 2-5 years than 5
amount less
years
Non current financial liabilities
Borrowings (including interest) 509.44 561.36 236.15 21.75 303.46 -
Current financial liabilities
Trade payables 835.30 835.30 835.30 - - -
Other financial liabilities 24.10 24.10 24.10 - - -

Annual Report 2020-21 185

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

` crore
Contractual cash flows
More
As at 31st March, 2020 Carrying 1 year or
Total 1-2 years 2-5 years than 5
amount less
years
Non current financial liabilities
Borrowings (including interest) 373.83 397.44 201.33 196.11 - -
Current financial liabilities
Trade payables 637.22 637.22 637.22 - - -
Other financial liabilities 23.02 23.02 23.02 - - -

iv. Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and
equity prices – will affect the Company’s income or the value of its holdings of financial instruments. Market
risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and
payables. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest
rate risk and the market value of investments. Thus, Company’s exposure to market risk is a function of
investing and revenue generating and operating activities in foreign currency. The objective of market risk
management is to avoid excessive exposure in our foreign currency revenues and costs.

v. Currency risk
The Company is exposed to currency risk on account of its receivable and payables in foreign currency.
The functional currency of the Company is Indian Rupee. The Company uses forward foreign exchange
contracts and options foreign exchange contracts to hedge its currency risk, with a maturity of less than
one year from the reporting date.

Company do not use derivative financial instruments for trading or speculative purposes.

Following is the derivative financial instruments to hedge the foreign exchange rate risk:
Amounts
Cross
Category Instrument Currency ($ in Buy/Sell Period
Currency
million)
Hedges of recognised liabilities Option USD INR 6.28 Buy As at
Contract 31st March,
2021
Hedges of recognised liabilities Forward USD INR 0.25 Buy As at
Contract 31st March,
2021

186 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Standalone Financial Statements

for the year ended 31st March, 2021

Exposure to currency risk

The currency profile of financial assets and financial liabilities denominated in USD are as below:
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Financial assets
Trade receivables 6.61 20.01
6.61 20.01
Financial liabilities
Trade payables 55.73 70.31
55.73 70.31
Net foreign currency exposure (49.12) (50.30)

Sensitivity analysis
A reasonably possible strengthening/ (weakening) of the Indian Rupee against foreign currencies at
reporting date would have affected the measurement of financial instruments denominated in foreign
currencies 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.

Profit or loss
Effect in ` crore
Movement Strengthening Weakening
31st March, 2021
USD 5% (2.46) 2.46
(2.46) 2.46

Profit or loss
Effect in ` crore
Movement Strengthening Weakening
31st March, 2020
USD 5% (2.51) 2.51
(2.51) 2.51

42 CAPITAL MANAGEMENT
Equity share capital and other equity are considered for the purpose of Company’s capital management. The
Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns
to shareholders. The capital structure of the Company is based on management’s judgement of its strategic
and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.
The management and the Board of Directors monitors the return on capital as well as the level of dividends to
shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.

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 ‘total equity’. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash
equivalents, other bank balances and current investments. Total equity comprises all components of equity.

Annual Report 2020-21 187

Notes to the Standalone Financial Statements
for the year ended 31st March, 2021

The Company’s adjusted net debt-to-equity ratio at 31st March, 2021 was as follows:
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Total borrowings (including current portion of long-term debts) 478.79 349.72
Less : Cash and cash equivalents 252.99 22.97
Less : Other bank balances 341.53 24.09
Less : Current investments 761.07 539.58
Adjusted net debt (876.80) (236.92)
Total equity 1,918.99 1,467.80
Adjusted net debt to adjusted equity ratio (0.46) (0.16)

43 Disclosure pursuant to Indian Accounting Standard (Ind AS) 27, Separate Financial Statements
Investments in following subsidiary companies are accounted at cost:

Principal Proportion of direct Proportion of direct

Sr.
Name of the subsidiary companies place of ownership as on ownership as on
no.
business 31st March, 2021 31st March, 2020
1 Pinnacles Lighting Project Private Limited India 100% 100%
2 Nexustar Lighting Project Private Limited India 100% 100%

44 Based on assessment order received during the year, the Company has written-back an amount of ` 76.68 crore
(Previous year ` 57.38 crore) in respect of earlier years and the same is netted-off from current tax expense for the
year ended 31st March, 2021.

45 COVID-19 has caused disruptions to businesses across India. The management has considered subsequent
events, internal and external information in finalising various financial estimates as at the date of approval of
these financial results and have not identified any material impact on the carrying value of assets, liabilities or
provisions. The management will continue to closely monitor any changes to future economic conditions and
assess its impact on the operations.

46 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The Company will assess the
impact of the Code when it comes into effect and will record any related impact in the period when the Code
becomes effective.

47 Amount shown as ` 0.00 represents amount below ` 50,000 (Rupees Fifty Thousand).
48 Figures for the previous year have been regrouped wherever necessary.

Signatures to Notes 1 to 48
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

188 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Independent Auditor’s Report

To the Members of Crompton Greaves Consumer Key Audit Matters

Electricals Limited Key audit matters are those that, in our professional
judgement, were of most significance in our audit of the
Report on the Audit of the Consolidated Financial consolidated financial statements of the current year. These
Statements matters were addressed in the context of our audit of the
Opinion consolidated financial statements as a whole, and in forming
We have audited the accompanying consolidated our opinion thereon, and we do not provide a separate
financial statements of Crompton Greaves Consumer opinion on these matters.
Electricals Limited (hereinafter referred to as ‘Holding
Company’) and its subsidiaries (Holding Company and We have determined the matters described below to be the
its subsidiaries together referred to as the ‘Group’), which key audit matters to be communicated in our report.
comprise the Consolidated Balance Sheet as at 31st
March, 2021, and the Consolidated Statement of Profit 1. Goodwill (Refer Notes 2 and 37 to the consolidated
and Loss, the Consolidated Statement of Changes in financial statements)
Equity and the Consolidated Statement of Cash Flows On the demerger of the Consumer Business from
for the year then ended, and notes to the Consolidated Crompton Greaves Limited (CGL) (now CG Power and
financial statements, including a summary of the significant Industrial Solutions Limited) and in terms of ‘Scheme of
accounting policies and other explanatory information Arrangement’ the assets and liabilities of the Consumer
(hereinafter referred to as the ‘consolidated financial Business along with certain brand usage rights
statements’). were transferred to Crompton Greaves Consumer
Electricals Limited (CGCEL). The excess of liabilities
In our opinion and to the best of our information and according over net assets based on fair value and the share
to the explanations given to us, the aforesaid consolidated capital amounting to Rs. 779.41 crore, was recorded
financial statements give the information required by the as Goodwill in the books of CGCEL. The Company
Companies Act, 2013 (the ‘Act’) in the manner so required has adopted the policy of amortising the goodwill in
and give a true and fair view in conformity with the accounting the books of account, on the outcome of impairment
principles generally accepted in India, of the consolidated test if there is an indication of impairment as at the
state of affairs of the Group as at 31st March, 2021, of its reporting date. Based on the valuation done by the
consolidated profit, consolidated changes in equity and its management’s consultant, the value of the goodwill
consolidated cash flows for the year then ended. is more than book value of goodwill as at 31st March,
2021, and hence, there is no indication of impairment.
Basis for Opinion
We conducted our audit in accordance with the Standards We draw attention to Note 45 to the consolidated
on Auditing (SAs) specified under Section 143(10) of the financial statements. Due to the inherent uncertainty
Act. Our responsibilities under those Standards are further involved in forecasting and discounting future cash
described in the Auditor’s Responsibilities for the Audit of the flows, determination of discount and terminal growth
Consolidated Financial Statements section of our report. We rates, which are the basis for computing the value of
are independent of the Group in accordance with the ethical goodwill and the assessment of recoverability, these
requirements that are relevant to our audit of the consolidated are the key judgement areas. In view of the above, the
financial statements in India in terms of the Code of Ethics Company has carried out an impairment assessment
issued by the Institute of Chartered Accountants of India of goodwill using the value-in-use model which is
(ICAI) and the relevant provisions of the Act, and we have based on the net present value of the forecast earnings
fulfilled our other ethical responsibilities in accordance with of the cash generating units. The computation involved
these requirements. We believe that the audit evidence we using certain assumptions around discount rates,
have obtained is sufficient and appropriate to provide a growth rates and cash flow forecasts. Accordingly, this
basis for our opinion. is considered as the key audit matter.

Annual Report 2020-21 189

 Principal Audit Procedures These provisions are estimated using a significant
We have performed the audit procedures in the degree of management judgement in interpreting
circumstances as stated above, including: the various relevant rules, regulations and practices.
Provision for tax is also based on the presumption
a) Critically reviewing the Company’s assumptions of significant estimates and assumptions on the
pertaining to externally derived data in relation to allowability / disallowablilty of claims at the assessment
key inputs, such as, long-term growth rates and level. Accordingly, this is considered as the key audit
discount rates; matter.

b) Assessed the appropriateness of the forecasted Principal Audit Procedures

cash flows based on our understanding of the
We have performed audit procedures, which including:
business and sector experience;
a) Obtained understanding of the key uncertain
c) Recalculated the weighted average cost of capital
tax provisions and also obtained information
(WACC) used to discount the cash flows and
of completed tax assessments and demands
assessed those rates to be reasonable based on
/ refunds received by the Company during the
knowledge of the economic environment and the
financial year 2020-21;
risk premium associated with respective industries
and countries.
b) Critically reviewed the processes and controls in
d) Compared the cash flow forecasts used in the place over tax assessments and demands / refunds
impairment assessment prepared by management through discussions with the management’s
consultant with the budgeted numbers to the internal experts / external consultants and
extent available; reviewed the communications with those charged
with governance pertaining to this issue;
e) Evaluated the reasonableness of the forecasts
made by the management by comparing past c) Involved our tax team to discuss with the
forecasts to historical results, where this was appropriate management to critically evaluate the
available, and by comparing to the current year key assumptions in estimating the tax provisions
results of the Company; and assessed the possible outcome of the
assessment / demands of the disputed claims.
f) Subjected related key assumptions to sensitivity Our tax team considered past precedence and
analysis; other rulings in evaluating Company’s position on
these uncertain tax positions.
g) Evaluated whether the Company’s disclosures
concerning the sensitivity of the impairment d) Assessed whether the Company’s disclosures in
assessment to changes in key assumptions, Note 30 to the consolidated financial statements
reasonably reflected the risks inherent in the - Contingent liabilities and commitments,
valuation of goodwill; adequately disclose the relevant facts and
circumstances and potential liabilities of the
h) Skeptically reviewed management’s assumptions, Company.
judgement and the appropriateness of the
valuation model used; e) Further, considered the effect of all the information
in respect of uncertain tax positions as at 1st April,
i) Tested the mathematical accuracy of 2020 and provision for tax to evaluate whether any
management’s calculations. review was necessary to Company’s position on
these uncertainties.
Our audit procedures did not reveal material variations.
Our audit procedures did not reveal any negative
2. Ongoing tax matters, including provision for
observations in the matter.
tax
The Company’s unsettled tax positions includes matters
3. Estimates - Provision for warranty
under dispute which involves significant judgment to
Computation of provision for warranties and returns
determine the possible outcome of these disputes.
involves critical evaluation of historical data with respect

190 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

to the nature of repair and returns, and estimation of financial statements or our knowledge obtained in the audit
costs in respect of future warranty claims and refunds. or otherwise appears to be materially misstated. If, based
In view of the estimates being based on facts and on the work we have performed, we conclude that there is
circumstances that can change from period to period, a material misstatement of this other information, we are
this is considered to be a significant management required to report that fact. We have nothing to report in this
judgement. Accordingly, this is considered as the key regard.
audit matter.
Responsibilities of Management and Those
Principal Audit Procedures Charged with Governance for the Consolidated
We have performed audit procedures in the
Financial Statements
The Holding Company’s Board of Directors is responsible
circumstances as stated above, which includes:
for the preparation and presentation of these consolidated
a) Reviewed management’s contract risk financial statements in terms of the requirements of the Act
assessments by enquiries, inspection of minutes that give a true and fair view of the consolidated financial
of meeting and review of correspondence with position, consolidated financial performance, consolidated
customers, where available. As we have the changes in equity and consolidated cash flows of the Group
knowledge gained through field involvement and in accordance with the accounting principles generally
feedback on review of the operation, contract and accepted in India, including the Indian Accounting Standards
project reviews, we also assessed the justification specified under Section 133 of the Act. The respective
for and the accuracy of provisions; Board of Directors of the companies included in the Group
are responsible for maintenance of adequate accounting
b) Reviewed the recognition and appropriateness records in accordance with the provisions of the Act for
of provisions by re-computing the amounts, safeguarding the assets of the Group and for preventing
obtaining management statements, evidence and and detecting frauds and other irregularities; selection and
supporting documents, such as, correspondence application of appropriate accounting policies; making
with clients or legal assessments of internal judgments and estimates that are reasonable and prudent;
sources, where available; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
c) Considered the historical accuracy of estimates ensuring the accuracy and completeness of the accounting
made by management through reviews of actual records, relevant to the preparation and presentation of the
facts. In order to gain a complete and clear consolidated financial statements that give a true and fair
understanding, additionally performed enquiry view and are free from material misstatement, whether due
procedures and reviewed relevant documents. to fraud or error, which have been used for the purpose of
preparation of the consolidated financial statements by the
Our audit procedures did not reveal any observations Directors of the Holding Company, as aforesaid.
of any material differences.
In preparing the consolidated financial statements,
Information Other than the Consolidated Financial respective Board of Directors of the Companies included
Statements and Auditor’s Report Thereon in the Group are responsible for assessing the ability of
The Holding Company’s Board of Directors is responsible the Group to continue as a going concern, disclosing, as
for the other information. The other information comprises applicable, matters related to going concern and using the
the information included in the Annual Report, but does going concern basis of accounting unless Board of Directors
not include the consolidated financial statements and our either intends to liquidate the Group or to cease operations,
auditor’s report thereon. or has no realistic alternative but to do so.

Our opinion on the consolidated financial statements does The respective Board of Directors of companies included
not cover the other information and we do not express any in the Group are responsible for overseeing the financial
form of assurance conclusion thereon. reporting process of the Group.

In connection with our audit of the consolidated financial Auditor’s Responsibilities for the Audit of the
statements, our responsibility is to read the other Consolidated Financial Statements
information and, in doing so, consider whether the other Our objectives are to obtain reasonable assurance about
information is materially inconsistent with the consolidated whether the consolidated financial statements as a whole

Annual Report 2020-21 191

are free from material misstatement, whether due to fraud • Evaluate the overall presentation, structure and content
or error, and to issue an auditor’s report that includes our of the consolidated financial statements, including the
opinion. Reasonable assurance is a high level of assurance, disclosures, and whether the consolidated financial
but is not a guarantee that an audit conducted in accordance statements represent the underlying transactions and
with SAs will always detect a material misstatement when events in a manner that achieves fair presentation; and
it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in aggregate, they • Obtain sufficient appropriate audit evidence regarding
could reasonably be expected to influence the economic the financial information of the entities or business
decisions of users taken on the basis of these consolidated activities within the Group to express an opinion on the
financial statements. consolidated financial statements. We are responsible
for the direction, supervision and performance of
As part of an audit in accordance with SAs, we exercise the audit of the financial statements of such entities
professional judgment and maintain professional skepticism included in the consolidated financial statements of
throughout the audit. We also: which we are the independent auditors. We remain
solely responsible for our audit opinion.
• Identify and assess the risks of material misstatement
of the consolidated financial statements, whether due We communicate with those charged with governance
to fraud or error, design and perform audit procedures of the Holding Company and such other entities included
responsive to those risks, and obtain audit evidence in the consolidated financial statements of which we are
that is sufficient and appropriate to provide a basis independent auditors regarding, among other matters, the
for our opinion. The risk of not detecting a material planned scope and timing of the audit and significant audit
misstatement resulting from fraud is higher than for one findings, including any significant deficiencies in internal
resulting from error, as fraud may involve collusion, control that we identify during our audit.
forgery, intentional omissions, misrepresentations, or
the override of internal control; We also provide those charged with governance with a
statement that we have complied with relevant ethical
• Obtain an understanding of internal control relevant to requirements regarding independence, and to communicate
the audit in order to design audit procedures that are with them all relationships and other matters that may
appropriate in the circumstances. Under Section 143(3) reasonably be thought to bear on our independence, and
(i) of the Act, we are also responsible for expressing where applicable, related safeguards.
our opinion on whether the Company has adequate
internal financial controls system in place and the From the matters communicated with those charged with
operating effectiveness of such controls; governance, we determine those matters that were of
most significance in the audit of the consolidated financial
• Evaluate the appropriateness of accounting policies statements of the current year and are therefore the key
used and the reasonableness of accounting estimates audit matters. We describe these matters in our auditor’s
and related disclosures made by management; report, unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
• Conclude on the appropriateness of management’s we determine that a matter should not be communicated
use of the going concern basis of accounting and, in our report because the adverse consequences of doing
based on the audit evidence obtained, whether so would reasonably be expected to outweigh the public
a material uncertainty exists related to events or interest benefits of such communication.
conditions that may cast significant doubt on the
ability of the Group to continue as a going concern. Report on Other Legal and Regulatory Requirements
If we conclude that a material uncertainty exists, we As required by Section 143(3) of the Act, we report, to the
are required to draw attention in our auditor’s report extent applicable, that:
to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to a) we have sought and obtained all the information and
modify our opinion. Our conclusions are based on the explanations which to the best of our knowledge and
audit evidence obtained up to the date of our auditor’s belief were necessary for the purposes of our audit of
report. However, future events or conditions may cause the aforesaid consolidated financial statements;
the Group to cease to continue as a going concern;

192 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

b) in our opinion, proper books of account as required by and to the best of our information and according to the
law relating to preparation of the aforesaid consolidated explanations given to us, the remuneration paid by the
financial statements have been kept so far as it appears Holding Company to its directors is in accordance with
from our examination of those books; the provisions of Section 197 of the Act; and

h) with respect to the other matters to be included in

c) the Consolidated Balance Sheet, the Consolidated
the Auditor’s Report in accordance with Rule 11 of
Statement of Profit and Loss, the Consolidated
the Companies (Audit and Auditors) Rules, 2014, in
Statement of Changes in Equity and the Consolidated our opinion and to the best of our information and
Statement of Cash Flows dealt with by this Report according to the explanations given to us:
are in agreement with the relevant books of account
maintained for the purpose of preparation of the (a) the Consolidated financial statements disclose
consolidated financial statements; the impact of pending litigations on consolidated
financial position of the Group - (Refer Note 30 to
d) in our opinion, the aforesaid consolidated financial the consolidated financial statements);
statements comply with the Indian Accounting (b) the Group did not have any material foreseeable
Standards specified under Section 133 of the Act; losses on the long-term contracts including
derivative contracts; and
e) On the basis of the written representations received
from the directors of the Holding Company as on (c) the requirements to transfer amounts to the
31st March, 2021 taken on record by the Board of Investor Education and Protection Fund is not
Directors of the Holding Company and the reports presently applicable to the Holding Company and
of the statutory auditors of its subsidiary companies its subsidiary companies incorporated in India.
incorporated in India, none of the directors of the Group
companies is disqualified as on 31st March, 2021 from
being appointed as a director in terms of Section 164 SHARP & TANNAN
(2) of the Act; Chartered Accountants
Firm’s Registration No.109982W
f) with respect to the adequacy of the internal financial by the hand of
controls over financial reporting of the Group and the
operating effectiveness of such controls, refer to our
separate Report in Annexure ‘A’;
Edwin P. Augustine
g) with respect to the other matters to be included in the Partner
Auditors Report in accordance with the requirements of Membership No. 043385
Section 197(16) of the Act, as amended, in our opinion Mumbai, 21st May, 2021 UDIN:21043385AAAADR1941

Annual Report 2020-21 193

Annexure ‘A’ to the Independent Auditor’s
Report
(Referred to in paragraph 2(f) of our report of even date) and maintained and if such controls operated effectively in
all material respects.
Report on the Internal Financial Controls under
Section 143(3)(i) of the Companies Act, 2013 (the Our audit involves performing procedures to obtain audit
‘Act’) evidence about the adequacy of the internal financial
In conjunction with our audit of the consolidated financial controls system over financial reporting and their operating
statements of the Crompton Greaves Consumer Electricals effectiveness. Our audit of internal financial controls over
Limited (hereinafter referred to as the Holding Company) as financial reporting included obtaining an understanding of
of and for the year ended 31st March, 2021, we have audited internal financial controls over financial reporting, assessing
the internal financial controls over financial reporting of the the risk that a material weakness exists, and testing and
Holding Company and its subsidiary companies, which are evaluating the design and operating effectiveness of
companies incorporated in India, as of that date. internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the
Management’s Responsibility for Internal Financial assessment of the risks of material misstatement of the
Controls consolidated financial statements, whether due to fraud or
The respective Board of Directors of the Holding error.
Company, its subsidiary companies, which are companies
incorporated in India are responsible for establishing We believe that the audit evidence we have obtained and
and maintaining internal financial controls based on the the audit evidence obtained by the other auditors in terms
internal control over financial reporting criteria established of their reports referred to in the Other Matters paragraph
by the Company considering the essential components below is sufficient and appropriate to provide a basis for our
of internal control stated in the Guidance Note on Audit audit opinion on the Company’s internal financial controls
of Internal Financial Controls Over Financial Reporting system over financial reporting.
(the ‘Guidance Note’) issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include Meaning of Internal Financial Controls Over
the design, implementation and maintenance of adequate Financial Reporting
internal financial controls that were operating effectively for A company’s internal financial control over financial
ensuring the orderly and efficient conduct of its business, reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
including adherence to the respective company’s policies,
and the preparation of consolidated financial statements for
the safeguarding of its assets, the prevention and detection
external purposes in accordance with generally accepted
of frauds and errors, the accuracy and completeness of the
accounting principles. A company’s internal financial
accounting records, and the timely preparation of reliable
control over financial reporting includes those policies and
financial information, as required under the Act.
procedures that: (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
Auditor’s Responsibility
transactions and dispositions of the assets of the company;
Our responsibility is to express an opinion on the Company’s
(2) provide reasonable assurance that transactions are
internal financial controls over financial reporting based on
recorded as necessary to permit preparation of consolidated
our audit. We conducted our audit in accordance with the
financial statements in accordance with generally accepted
Guidance Note and the Standards on Auditing, issued by
accounting principles, and that receipts and expenditures
ICAI and deemed to be prescribed under Section 143(10) of the company are being made only in accordance
of the Act, to the extent applicable, to an audit of internal with authorisations of management and directors of the
financial controls, both issued by the ICAI. Those Standards company; and (3) provide reasonable assurance regarding
and the Guidance Note require that we comply with ethical prevention or timely detection of unauthorised acquisition,
requirements and plan and perform the audit to obtain use, or disposition of the company’s assets that could have
reasonable assurance about whether adequate internal a material effect on the consolidated financial statements.
financial controls over financial reporting was established

194 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Inherent Limitations of Internal Financial Controls an adequate internal financial controls system over
Over Financial Reporting financial reporting and such internal financial controls
Because of the inherent limitations of internal financial over financial reporting were operating effectively as of
controls over financial reporting, including the possibility 31st March, 2021, based on the internal control over financial
of collusion or improper management override of controls, reporting criteria established by the Holding Company
material misstatements due to error or fraud may occur and considering the essential components of internal control
not be detected. Also, projections of any evaluation of the stated in the Guidance Note issued by the ICAI.
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 SHARP & TANNAN
because of changes in conditions, or that the degree of Chartered Accountants
compliance with the policies or procedures may deteriorate. Firm’s Registration No.109982W
by the hand of
Opinion
In our opinion, to the best of our information and according Edwin P. Augustine
to the explanations given to us, the Holding Company Partner
and its subsidiary companies which are companies Membership No. 043385
incorporated in India, have, in all material respects, Mumbai, 21st May, 2021 UDIN: 21043385AAAADR1941

Annual Report 2020-21 195

Consolidated Balance Sheet
As at 31st March, 2021
` crore
As at As at
Particulars Notes
31st March, 2021 31st March, 2020
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment 2 132.76 125.06
(b) Capital work-in-progress 10.86 19.90
(c) Goodwill 2 779.41 779.41
(d) Other intangible assets 2 2.82 4.50
(e) Financial assets
(i) Others 3 6.15 7.82
(f) Deferred tax assets (net) 21 58.55 50.67
(g) Other non-current assets 4 20.09 22.79
Total non-current assets 1,010.64 1,010.15
(2) Current assets
(a) Inventories 5 518.64 463.61
(b) Financial assets
(i) Investments 6 769.73 540.82
(ii) Trade receivables 7 491.18 463.46
(iii) Cash and cash equivalents 8 262.42 24.03
(iv) Bank balances other than (iii) above 9 341.53 24.09
(v) Others 10 13.15 12.77
(c) Current tax assets (net) 20.72 78.84
(d) Other current assets 11 189.29 134.05
Total current assets 2,606.66 1,741.67
TOTAL ASSETS 3,617.30 2,751.82
II. EQUITY AND LIABILITIES
Equity
(a) Equity share capital 12 125.54 125.46
(b) Other equity 13 1,805.89 1,342.88
Total equity 1,931.43 1,468.34
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
Borrowings 14 298.79 179.72
(b) Provisions 15 21.44 19.11
Total non-current liabilities 320.23 198.83
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings 16 - -
(ii) Trade payables
(a) Due to micro and small enterprises 17 35.60 3.30
(b) Due to creditors other than micro and small
enterprises 17 829.07 640.27
(iii) Other financial liabilities 18 234.75 217.14
(b) Other current liabilities 19 61.46 58.31
(c) Provisions 20 204.76 165.51
(d) Current tax liabilities (net) - 0.12
Total current liabilities 1,365.64 1,084.65
Total liabilities 1,685.87 1,283.48
TOTAL EQUITY AND LIABILITIES 3,617.30 2,751.82
Significant accounting policies 1
Contingent liabilities and commitments 30
Other notes 31 to 48
The accompanying notes form an integral part of the financial statements
As per our report attached
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

196 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Profit and Loss

for the year ended 31st March, 2021
` crore
Particulars Notes 2020-21 2019-20
Income
I. Revenue from operations 22 4,803.51 4,520.26
II. Other income 23 75.75 59.05
III. Total Income (I+II) 4,879.26 4,579.31
IV. Expenses
Cost of materials consumed 24 986.31 979.46
Purchase of stock-in-trade 25 2,320.00 2,217.16
Changes in inventories of finished goods,
stock-in-trade and work-in-progress 26 (39.07) (126.29)
Employee benefits expense 27 336.58 310.95
Finance costs 28 42.91 40.67
Depreciation and amortisation expense 2 29.69 26.79
Other expenses 29 479.21 539.88
Total Expenses (IV) 4,155.63 3,988.62
V. Profit before tax 723.63 590.69
VI. Tax expense:
Current tax (Refer Note 44) 115.61 84.00
Deferred tax 21 (8.63) 10.30
VII. Profit for the year 616.65 496.39
VIII. Other comprehensive income
(i) Items that will not be reclassified to profit or loss
Remeasurements gain / (loss) on defined benefit plans 2.93 (2.88)
(ii) Income tax related to items that will not be reclassified to
profit or loss (0.74) 0.73
Other comprehensive income for the year (net of tax) 2.19 (2.15)
IX. Total comprehensive income for the year 618.84 494.24
X. Earnings per equity share 36
1. Basic (`) 9.83 7.92
2. Diluted (`) 9.75 7.85
Significant accounting policies 1
Other Notes 31 to 48
The accompanying notes form an integral part of the financial statements
As per our report attached
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

Annual Report 2020-21 197

Consolidated Statement of Changes in Equity
for the year ended 31st March, 2021

(A) EQUITY SHARE CAPITAL

Particulars As at 31st March, 2021 As at 31st March, 2020
No. of Shares Amount No. of Shares Amount
` crore ` crore
Balance as at the beginning of the reporting period 62,72,83,972 125.46 62,69,85,920 125.40
Changes in equity share capital during the year 4,07,381 0.08 2,98,052 0.06
Balance as at the end of the reporting period 62,76,91,353 125.54 62,72,83,972 125.46

(B) OTHER EQUITY - OWNERS

` crore
Particulars Reserves and Surplus Other Total Other
comprehensive Equity
income
Capital Securities Employee Debenture Retained Remeasurement
Reserve premium stock options redemption earnings gain / (loss) on
outstanding reserve defined benefit
account plans
Balance as at 01-04-2019 0.05 6.00 120.83 75.00 768.90 1.14 971.92
Profit for the year 496.39 496.39
Dividends paid including dividend distribution tax (151.17) (151.17)
Securities premium received 5.05 5.05
Amount transferred to Securities premium 2.31 (2.31) -
Amount transferred to Retained earnings (0.11) 0.11 -
Movement in Other comprehensive income for
the year (2.15) (2.15)
Add: Employee compensation expense for the
year (Refer Note 27) 22.83 22.83
Balance as at 31-03-2020 0.05 13.36 141.24 75.00 1,114.23 (1.01) 1,342.87
Profit for the year 616.65 616.65
Dividends paid (188.20) (188.20)
Securities premium received 7.21 7.21
Amount transferred to Securities premium 3.44 (3.44) -
Amount transferred to Retained earnings (0.44) 0.44 -
Movement in Other comprehensive income for
the year 2.19 2.19
Add: Employee compensation expense for the
year (Refer Note 27) 25.17 25.17
Balance as at 31-03-2021 0.05 24.01 162.53 75.00 1,543.12 1.18 1,805.89

As per our report attached

SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

198 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Consolidated Statement of Cash Flows

for the year ended 31st March, 2021
` crore
Particulars 2020-21 2019-20
[A] CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 723.63 590.69
Adjustments for:
Depreciation and amortisation expense 29.69 26.79
Interest expense 42.91 40.67
Loss on sale of property, plant and equipment 0.16 0.15
Provision for expenses on employee stock options 25.17 22.83
Net (gain) / loss on sale/ fair valuation of investments (43.66) (33.96)
Interest income (31.37) (23.38)
Unrealised exchange (gain) / loss (net) (3.21) 3.84
19.69 36.94
Cash Generated from operations before working capital changes 743.32 627.63
Adjustments for:
(Increase) / Decrease in trade and other receivables (77.24) 59.51
(Increase) / Decrease in inventories (55.03) (111.23)
Increase / (Decrease) in trade and other payables 232.22 (33.00)
Increase / (Decrease) in provisions 44.52 12.64
144.47 (72.08)
Cash generated from operations 887.79 555.55
Taxes paid (net of refunds) (57.50) (144.63)
Net cash generated from / (used in) operating activities [A] 830.29 410.92
[B] CASH FLOWS FROM INVESTING ACTIVITIES
Add: Inflows from investing activities
Interest received 26.73 20.85
Sale of property, plant and equipment 0.41 1.13
27.14 21.98
Less: Outflows from investing activities
Purchase / (sale) of current investments (net) 185.25 (34.35)
Increase / (Decrease) in other bank balances and term deposits 317.44 (1.97)
Purchase of property, plant and equipment and intangible assets 20.18 49.40
522.87 13.08
Net Cash (used in) / generated from investing activities [B] (495.73) 8.90

Annual Report 2020-21 199

Consolidated Statement of Cash Flows
for the year ended 31st March, 2021

` crore
Particulars 2020-21 2019-20
[C] CASH FLOWS FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Proceeds from issue of equity shares 7.27 5.15
Proceeds from issue of debentures 300.00 -
307.27 5.15
Less: Outflows from financing activities
Payment of dividend including dividend distribution tax 187.39 150.55
Repayment of debentures 170.00 300.00
Repayment of lease liability 11.90 8.79
Interest paid 34.15 58.58
403.44 517.92
Net Cash (used in) / generated from financing activities [C] (96.17) (512.77)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 238.39 (92.95)
(a) Cash and cash equivalents at beginning of the year 24.03 116.98
(b) Cash and cash equivalents at end of the year 262.42 24.03
(c) Net increase / (decrease) in cash and cash equivalents (c = b-a) 238.39 (92.95)

Notes:
1 The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting
Standard (Ind AS) 7, Statement of Cash Flows as specified in the Companies (Indian Accounting Standards), Rules,
2015 (as amended).
2 Additions to property, plant and equipment include movements of capital work-in-progress during the year.
3 Figures for the previous year have been regrouped wherever necessary.
As per our report attached
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

200 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021
Company Overview c) Basis of preparation
Crompton Greaves Consumer Electricals Limited and its The financial statements have been prepared
subsidiaries (the ‘Company’ or ‘Crompton’) is engaged under the historical cost convention except for
in the business of manufacturing, trading, selling and the following assets and liabilities which have
distribution of fans, lighting, pumps and appliances. been measured at fair value:
The Company is a public limited company incorporated 1. Financial instruments measured at fair value
and domiciled in India and has its registered office at through profit or loss; and
Mumbai, India.
2. Defined benefit plans – plan assets measured
The consolidated financial statements comprise the at fair value.
financial statements of Crompton Greaves Consumer
Electricals Limited (the ‘Company’) and its subsidiaries These financial statements are prepared by
(collectively, the ‘Group’). applying uniform accounting policies with those
used by the parent Company. Subsidiaries are
1. Significant Accounting Policies consolidated on a line-by-line basis. Intercompany
1) Statement of compliances and basis of transactions, balances, income and expenses are
preparation and presentation eliminated on consolidation.
a) The consolidated financial statements have
When parent Company has sold materials to a
been prepared in compliance with Indian
supplier / vendor, who has processed further
Accounting Standards (the ‘Ind AS’) notified
the said material and sold it to a Wholly owned
under Section 133 of the Companies Act, 2013
Subsidiary of the parent Company; the value
(the ‘Act’) read with Rule 3 of the Companies
of such transaction of purchase/sale has been
(Indian Accounting Standards) Rules, 2015, as
eliminated in consolidated financial statements.
amended and other relevant provisions of the
Act.
d) Current vs non-current classification
The Company presents assets and liabilities in
b) Basis of presentation
the balance sheet based on current / non-current
The Balance sheet and the Statement of profit classification. An asset is treated as current when
and loss are prepared and presented in the it is:
format prescribed in the Division II of Schedule
III to the Act. The Statement of Cash Flows • Expected to be realised or intended to be
has been prepared and presented as per the sold or consumed in normal operating cycle;
requirements of Ind AS 7, Statement of Cash • Held primarily for the purpose of trading;
Flows. The disclosure requirements with respect
• Expected to be realised within twelve months
to items in the Balance sheet and Statement of
after the reporting period; or
profit and loss, as prescribed in the Schedule
III to the Act, are presented by way of notes • Cash or cash equivalent unless restricted
forming part of the financial statements along from being exchanged or used to settle a
with the other notes required to be disclosed liability for at least twelve months after the
under the notified Accounting Standards and reporting period.
the SEBI (Listing Obligations and Disclosure All other assets are classified as non-current.
Requirements) Regulations, 2015 as amended.
A liability is current when:
The financial statements of the Company for the • It is expected to be settled in normal operating
year ended 31st March, 2021 were approved for cycle;
issue in accordance with the resolution of the
• It is held primarily for the purpose of trading;
Board of Directors on 21st May, 2021.

Annual Report 2020-21 201

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

• It is due to be settled within twelve months 2. Rounding of amounts

after the reporting period; or All amounts disclosed in the financial statements and
• There is no unconditional right to defer the notes are presented in crore and have been rounded
settlement of the liability for at least twelve off to two decimal as per the requirement of Division II
months after the reporting period. of Schedule III to the Act, unless otherwise stated.

The Company classifies all other liabilities as

3. Key estimates and assumptions
non-current.
The preparation of the Company’s financial statements
Deferred tax assets and liabilities are classified requires management to make judgments, estimates
as non-current assets and liabilities.
and assumptions that affect the reported amounts
e) The operating cycle is the time between the of revenue, expenses, assets, liabilities and the
acquisition of assets for processing and their accompanying disclosures along with contingent
realisation in cash and cash equivalents. The liabilities. Uncertainty about these assumptions
Company has identified twelve months as its and estimates could result in outcome that require
operating cycle. material adjustments to the carrying amount of assets
f) Fair Value Measurement: or liabilities affected in future periods. The Company
continually evaluates these estimates and assumptions
Fair value measurements are categorised as based on the most recently available information.
below based on the degree to which the inputs The management believes that the estimates used
to the fair value measurements are observable in preparation of the financial statements are prudent
and the significance of the inputs to the fair
and reasonable.
value measurement in its entity:

• Level 1: Level 1 inputs include financial In particular, information about significant areas of
instruments measured using estimates and judgments in applying accounting
quoted prices (unadjusted) in policies that have the most significant effect on the
active markets for identical assets amounts recognised in the financial statements are
or liabilities that the Company included in the following notes:
can access at measurement date;

• Level 2:  The fair value of financial • Assessment of functional currency [Refer Note
instruments that are not traded 1.4];
in an active market is determined
• Financial instruments (Refer Note 40);
using valuation techniques which
maximize the use of observable • Estimates of useful lives and residual value of
market data and rely as little property, plant and equipment and intangible
as possible on entity-specific assets [Refer Note 1.5 and 1.6];
estimate. If all significant inputs
require to fair value an instrument • Valuation of inventories [Refer Note 1.10];
are observable, the instrument is
included in level 2; and • Measurement of recoverable amounts of cash-
generating units (Refer Note 37);
• Level 3:  If one or more of the significant
inputs is not based on observable • Measurement of Defined Benefit Obligation, key
market data, the instrument is actuarial assumptions (Refer Note 34);
included in level 3. • Provisions and Contingencies [Refer Note 1.13
Above levels of fair value hierarchy are applied and 30];
consistently and generally, there are no transfers • Provision for product warranty [Refer Note 1.13]
between the levels of the fair value hierarchy
unless the circumstances change warranting • Recognition of revenue from contracts based on
such transfer. stage on completion [Refer Note 1.14]; and

202 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

• Evaluation of recoverability of deferred tax assets Where cost of a part of an asset (asset
[Refer Note 1.18]. component) is significant to total cost of the
asset and useful life of that part is different from
• Estimates related to Share-based Payments the useful life of the remaining asset, useful life
(Refer Note 38). of that significant part is determined separately
and such asset component is depreciated over
4. Foreign currency translation
its separate useful life.
(a) Functional and presentation currency
Items included in the financial statements of the Income and expenses related to the incidental
Company are measured using the currency of operations, not necessary to bring the item to
the primary economic environment in which the the location and condition necessary for it to be
entity operates (the ‘functional currency’). capable of operating in the manner intended by
management, are recognised in Statement of
The financial statements are presented in Indian profit and loss.
Rupee (INR), which is the Company’s functional
Any gain or loss on disposal of an item of PPE is
and presentation currency.
recognised in Statement of profit and loss.

(b) Transactions and balances

(b) Subsequent expenditure
Foreign currency transactions are translated
Subsequent expenditure is capitalised only, if
into the functional currency using the exchange
it is probable that the future economic benefits
rates prevailing at the dates of the transactions. associated with the expenditure will flow to the
Foreign exchange gains and losses resulting Company.
from the settlement of such transactions and from
the translation of monetary assets and liabilities
(c) Depreciation
denominated in foreign currencies at exchange
Depreciable amount for assets is the cost of an
rates prevailing on reporting date are generally
asset or other amount substituted for cost less its
recognised in Statement of profit and loss.
estimated residual value.

5. Property, plant and equipment (PPE)

Depreciation on PPE (other than leasehold
(a) Recognition and measurement land) has been provided based on useful life of
Freehold land is carried at historical cost. All the assets as estimated by the management on
Straight Line Method. The useful lives used are
other items of PPE are measured at cost less
in agreement with those specified in Schedule
accumulated depreciation and any accumulated
II to the Companies Act, 2013 except in respect
impairment losses, if any.
of following category of tangible assets where
the useful life is considered differently based on
The cost of an item of PPE comprises:
technical evaluation.
i) its purchase price, including import duties - Plant and equipment– maximum 21 years
and non-refundable purchase taxes, after
- Furniture and fixtures - maximum 15 years
deducting trade discounts and rebates.

ii) any costs directly attributable to bringing Premium paid on leasehold lands are amortised
the asset to the location and condition over the period of lease. Buildings constructed
necessary for it to be capable of operating on leasehold land are depreciated based on the
in the manner intended by management. management estimate of useful life, where the
lease period is beyond the life of the building. In
PPE which are not ready for intended use as other cases, buildings constructed on leasehold
on the date of Balance sheet are disclosed as land is amortised over the primary lease period
Capital work-in-progress. of the land.

Annual Report 2020-21 203

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

Depreciation on addition to/deductions from, (c) Amortisation

owned assets is calculated pro rata to the Intangible assets comprise computer software
period of use. Depreciation methods, estimated purchased, which are not an integral part of
useful lives and residual values are reviewed
the related hardware and technical know-how
at each reporting date and the effect of any
and are amortised on a straight line basis over
change in the estimates of useful life/ residual
a period of 5 years, which in management’s
value is adjusted prospectively.
estimate represents the period during which
the economic benefits will be derived from their
Gains or losses arising from derecognition of a
PPE are measured as the difference between use.
the disposal proceeds and the carrying amount
of the asset and are accordingly recognised in (d) Goodwill
the Statement of profit and loss. Goodwill arising as a result of business
combination is not amortised and is tested for
6. Intangible assets impairment every year.
(a) Recognition and measurement
(e) Research and development cost
Intangibles are recognised when it is probable
that the future economic benefits that are (i) Research cost
attributable to the asset will flow to the Revenue expenditure on research is
enterprise and the cost of the asset can be
charged to Statement of profit and loss
measured reliably.
under the respective heads of accounts in
the period in which it is incurred.
Intangible assets are carried at cost less
accumulated amortisation and impairment
losses, if any. The cost of an intangible asset (ii)
Development cost
comprises of its purchase price, including Development expenditure on new product
any import duties and other taxes (other than is capitalised as intangible asset, if all of
those subsequently recoverable from the the following can be demonstrated:
taxing authorities), and any directly attributable
expenditure on making the asset ready for its i. the technical feasibility of completing
intended use. the intangible asset so that it will be
available for use or sale;
Gains and losses on disposals are determined
by comparing proceeds with carrying amount ii. the Company has intention to complete
of the asset. These are included in Statement of the development of intangible asset
profit and loss within other gains/ (losses). and use or sell it;

The estimated useful life and amortisation

iii. the Company has ability to use or sell
methods are reviewed at the end of each
the intangible asset;
annual reporting period, with the effect of any
changes in the estimate being accounted for on
iv. the manner in which the probable
a prospective basis.
future economic benefit will be
generated including the existence of
(b) Subsequent expenditure
a market for output of the intangible
Subsequent expenditure is capitalised only asset or the intangible asset itself
when it increases the future economic benefits or if it is to be used internally, the
embodied in the specific asset to which it usefulness of the intangible asset;
relates.

204 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

v. the availability of adequate technical, accumulated amortisation or depreciation) had no

financial and other resources to impairment loss been recognised for the asset in
complete the development and to use prior years.
or sell the intangible asset; and
Goodwill impairment
vi. the Company has ability to measure For testing of impairment of goodwill, if events or
the expenditure attributable to changes in circumstances indicate a potential
the intangible asset during the impairment, as part of the review process, the
development reliably. carrying amount of the Cash Generating Units
(CGUs) (including allocated goodwill) is compared
Development costs on the intangible assets, with its recoverable amount by the company. The
fulfilling the criteria are amortised over a period recoverable amount is the higher of fair value less
of five years, otherwise are expensed in the costs to sell and value in use, both of which are
period in which they are incurred. calculated by the company using a discounted
cash flow analysis. Calculating the future net cash
Intangibles which are not ready for intended use
(f) flows expected to be generated to determine if
as on the date of Balance sheet are disclosed impairment exists and to calculate the impairment
as Intangibles under development. involves significant assumptions, estimation and
judgment. The estimation and judgment involve, but
7. Impairment of non-financial assets is not limited to, industry trends including pricing,
The Company assesses at each reporting date estimating long-term revenues, revenue growth and
whether there is any indication that an asset may operating expenses. An impairment loss recognised
be impaired. An asset is impaired when the carrying for goodwill is not reversed in subsequent periods.
amount of the asset exceeds its recoverable
amount. The recoverable amount is higher of the 8. Borrowings and loans
asset’s fair value less costs of disposal and value Borrowings and loans are initially recognised at
in use, which means the present value of future fair value, net of transaction costs incurred. It is
cash flows expected to arise from the continuing subsequently measured at amortised cost using
use of the asset and its eventual disposal. For the effective interest rate method. Amortised cost
the purposes of assessing impairment, assets are is calculated by taking into account any discount
grouped at their lowest levels for which there are or premium on acquisition and fees or transaction
separately identifiable cash inflows which are largely costs that are an integral part of the effective interest
independent of the cash inflows from other assets or rate. Any difference between the proceeds (net of
groups of assets (cash generating units). Impairment transaction costs) and the redemption amount is
loss is charged to the Statement of profit and loss in recognised in the Statement of profit and loss over
the year in which the asset is identified as impaired. the period of borrowings using the effective interest
The carrying amount of the asset is reduced to its rate.
recoverable amount.
9. Borrowing costs
An impairment loss for an asset is reversed if, and Borrowing costs includes interest and other costs
only if, the reversal can be related objectively to incurred in connection with the borrowing of funds
an event occurring after the impairment loss was and charged to Statement of profit and loss on the
recognised or relates to a change in the estimate basis of effective interest rate. Borrowing costs net of
of the recoverable amount in the previous periods. any investment income from temporary investment
The carrying amount of an asset is increased to of related borrowings that are directly attributable
its revised recoverable amount, provided that this to the acquisition, construction or production of a
amount does not exceed the carrying amount qualifying asset that necessarily takes a substantial
that would have been determined (net of any period of time to get ready for its intended use or sale

Annual Report 2020-21 205

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

are capitalised as part of the cost of the respective 12. Financial instruments
asset. All other borrowing costs are recognised as A financial instrument is any contract that gives rise to
expense in the Statement of profit or loss in the a financial asset of one entity and a financial liability
period in which they are incurred. or equity instrument of another entity. Financial
instruments also include derivative contracts such
10. Inventories
as foreign currency forward contracts, interest
Inventories are valued after providing for rate swaps and currency options; and embedded
obsolescence, where considered necessary, as derivatives in the host contract.
under:
(a) Financial assets
(a) Raw materials, : At lower of cost
components, computed, on weighted Classification
stores and average basis and net
The Company classifies its financial assets in
spare parts realisable value
the following measurement categories:
(b) Work -in- : At lower of cost
progress of materials, plus i. those measured at amortised cost, and
-Manufacturing appropriate production
overheads and net
ii. those to be measured at either fair value
realisable value
through other comprehensive income
(c) Finished goods : At lower of cost of (FVTOCI) or fair value through profit or loss
– Manufacturing materials plus appropriate
(FVTPL) on the basis of its business model
production overheads and
net realisable value for managing the financial assets and the
contractual cash flow characteristics of the
(d) Finished goods : At lower of cost
financial asset.
– Trading computed, on weighted
average basis and net
realisable value Initial recognition and measurement
All financial assets are recognised initially at
The cost of inventories has been computed to include fair value plus, in the case of financial assets
all cost of purchases, cost of conversion and other not recorded at fair value through profit or loss,
related costs incurred in bringing the inventories to transaction costs that are attributable to the
their present location and condition. Net realisable acquisition of the financial asset. Purchases or
value is the estimated selling price in the ordinary sales of financial assets that require delivery
course of business less the estimated costs of of assets within a time frame established by
completion and the estimated costs necessary to regulation or convention in the market place
make the sale. Materials and supplies held for use in (regular way trades) are recognised on the
the production of inventories are not written down,
trade date, i.e., the date that the Company
if the finished goods in which they will be used are
commits to purchase or sell the asset.
expected to be sold at or above cost.

Subsequent measurement
11. Cash and cash equivalents
After initial recognition, financial assets
Cash and cash equivalents includes cash on hand,
are measured at Fair value through Other
call deposits and other short-term, highly liquid
Comprehensive Income (FVTOCI) or through
investments with original maturities of three months
profit or loss (FVTPL) or amortised cost.
or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk
of changes in value. Cash and cash equivalents Debt instruments
consist of balances with banks which are unrestricted A ‘debt instrument’ is measured at the amortised
for withdrawal and usage. cost if both the following conditions are met:

206 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

a) The asset is held within a business model through’ arrangement; and either (a) the
whose objective is to hold assets for Company has transferred substantially
collecting contractual cash flows, and all the risks and rewards of the asset, or
(b) the Company has neither transferred
b) Contractual terms of the asset give rise on nor retained substantially all the risks and
specified dates to cash flows that are solely rewards of the asset, but has transferred
payments of principal and interest (SPPI) control of the asset.
on the principal amount outstanding.
• When the Company has transferred its rights
to receive cash flows from an asset or has
Subsequent measurement
entered into a pass-through arrangement,
Subsequent measurement of debt instruments it evaluates if and to what extent it has
depends on the Company’s business model retained the risks and rewards of ownership.
for managing the asset and the cash flow When it has neither transferred nor retained
characteristics of the asset. There are two substantially all of the risks and rewards of
measurement categories into which the the asset, nor transferred control of the
Company classifies its debt instruments: asset, the Company continues to recognize
the transferred asset to the extent of the
• Amortised cost Company’s continuing involvement. In that
Assets that are held for collection of case, the Company also recognizes an
contractual cash flows, where those cash associated liability. The transferred asset
flows represent solely payments of principal and the associated liability are measured
and interest, are measured at amortised on a basis that reflects the rights and
cost. A gain or loss on a debt investment obligations that the Company has retained.
(unhedged) that is subsequently measured • Continuing involvement that takes the form
at amortised cost is recognised in the of a guarantee over the transferred asset
Statement of profit and loss when the is measured at the lower of the original
asset is derecognised or impaired. Interest carrying amount of the asset and the
income from these financial assets is maximum amount of consideration that the
included in finance income using the Company could be required to repay.
effective interest rate (EIR) method.
• On derecognition of financial asset in
• Fair Value Through Profit or Loss (FVTPL) its entirety, the difference between the
category are measured at fair value with all carrying amount measured at the date
changes recognised in the Statement of of derecognition and the consideration
profit and loss. received is recognised in profit or loss.
• If the Company enters into transactions
De-recognition whereby it transfers assets recognised on
A financial asset (or where applicable, a part its balance sheet, but retains either all or
of a financial asset or part of similar assets) is substantially all of the risks and rewards
primarily derecognised (i.e., removed from the of the transferred assets, the transferred
Company’s balance sheet) when: assets are not derecognized and the
proceeds received are recognised as a
• The rights to receive cash flows from the
collateralized borrowing.
asset have expired, or
• The Company has transferred its rights Impairment of financial assets
to receive cash flows from the asset or The Company assesses on a forward looking
has assumed an obligation to pay the basis the expected credit losses associated
received cash flows in full without material with its assets carried at amortised cost. The
delay to a third party under a ‘pass- impairment methodology applied depends on

Annual Report 2020-21 207

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

whether there has been a significant increase in rate is the rate that exactly discounts estimated
credit risk. future cash payments through the expected life
of the financial liability, or, where appropriate, a
The Company applies expected credit loss shorter period.
(ECL) model for recognition and measurement
of impairment loss on the following financial Financial liabilities carried at fair value through
assets and credit risk exposure: profit or loss is measured at fair value with
all changes in fair value recognised in the
a) Financial assets that are debt instruments, Statement of profit and loss.
and are measured at amortised cost e.g.
deposits and bank balances De-recognition
A financial liability is derecognised when the
b) Trade receivables - The application of
obligation under the liability is discharged or
simplified approach does not require
cancelled or expires. When an existing financial
the Company to track changes in credit
liability is replaced by another from the same
risk. Rather, it recognizes impairment
lender on substantially different terms, or the
loss allowance based on lifetime ECLs at
terms of an existing liability are substantially
each reporting date, right from its initial
modified, such an exchange or modification
recognition.
is treated as the derecognition of the original
liability and the recognition of a new liability. The
(b) Financial liabilities difference in the respective carrying amounts is
The Company’s financial liabilities comprise recognised in the Statement of profit and loss.
of borrowings including bank overdrafts and
derivative financial instruments, trade payable Other financial liabilities
and other liabilities.
These are measured at amortised cost using
the effective interest method.
Classification
The Company classifies all financial liabilities Offsetting of financial instruments
as subsequently measured at amortised
Financial assets and liabilities are offset and
cost, except for financial liabilities at fair
the net amount is reported in the balance sheet
value through profit or loss. Such liabilities,
where there is a legally enforceable right to
including derivatives that are liabilities, shall be
offset the recognised amounts and there is an
subsequently measured at fair value.
intention to settle on a net basis or realize the
asset and settle the liability simultaneously. The
Initial recognition and measurement legally enforceable right must not be contingent
Financial liabilities are initially measured at fair on future events and must be enforceable in
value. In the case of loans and borrowings and the normal course of business and in the event
payables, financial liability is recognised net of of default, insolvency or bankruptcy of the
directly attributable transaction costs. Company or the counterparty.

Subsequent measurement Derivative financial instruments

Financial liabilities are subsequently measured The Company uses derivative financial
at amortised cost using the EIR method. The instruments, such as foreign currency forward
EIR is a method of calculating the amortised contracts and foreign currency option contracts
cost of a financial liability and of allocating to manage its exposure to foreign exchange
interest expense over the relevant period at risks. For these contracts hedge accounting
effective interest rate. The effective interest is not followed and such designated derivative

208 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

financial instruments are initially recognised or a present obligation whose amount cannot be
at fair value on the date on which a derivative estimated reliably. Contingent liabilities do not
contract is entered into and are subsequently warrant provisions but are disclosed unless the
re-measured at fair value through profit or possibility of outflow of resources is remote.
loss. Derivatives are carried as financial assets
when the fair value is positive and as financial Contingent assets are disclosed in the financial
liabilities when the fair value is negative. statements when an inflow of economic benefit is
probable. However, when the realisation of income
Financial guarantee contracts is virtually certain, then the related asset is not a
contingent asset and its recognition is appropriate.
Financial guarantee contracts are recognised
as a financial liability at the time of issuance Commitments are future liabilities for contractual
of guarantee. A financial guarantee contract expenditure, classified and disclosed as estimated
is a contract that requires the issuer to make amount of contracts remaining to be extracted on
specified payments to reimburse the holder for capital account and not provided for.
a loss it incurs because a specified debtor fails
to make payments when due in accordance 14. Revenue recognition
with the terms of a debt instrument.
(a) Revenue from Goods and Services
Financial guarantee contracts issued by the The Company recognises revenue from
Company are initially measured at their fair contracts with customers when it satisfies
values and, if not designated as at FVTPL, are a performance obligation by transferring
subsequently measured at the higher of: promised goods or services to a customer.
Revenue is recognised to the extent of
• The amount of loss allowance determined in transaction price allocated to the performance
accordance with impairment requirements obligation satisfied. Performance obligation is
of Ind AS 109; and satisfied over time when the transfer of control
of assets (goods or services) to a customer is
• The amount initially recognised less, when done over time and in other cases, performance
appropriate, the cumulative amount of obligations satisfied at a point in time. For
income recognised. performance obligation satisfied over time,
the revenue recognition is done by measuring
13. 
Provisions, contingent liabilities, contingent the progress towards complete satisfaction of
assets and commitments performance obligation and the progress is
A provision is recognised when the Company has a measured in terms of a proportion of actual
present obligation (legal or constructive) as a result cost incurred to date, to the total estimated cost
of past events and it is probable that an outflow of attributable to the performance obligation.
resources will be required to settle the obligation, in
respect of which a reliable estimate of the amount Income from services rendered is recognised
can be made. Provisions are recognised at the best based on agreements/arrangements with the
estimate of the expenditure required to settle the customers as the service is performed.
present obligation at the reporting date. If the effect
of time value of money is material, provisions are (b) Dividend income
determined by discounting the expected future cash
Dividend is recognised as revenue when the right
flows.
to receive payment has been established.
A contingent liability is disclosed when there is a
possible but not probable obligation arising from (c) Interest income
past events, or a present obligation that may, but For all interest bearing financial assets measured
probably will not, require an outflow of resources, at amortised cost, interest income is recorded

Annual Report 2020-21 209

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

using the EIR. EIR is the rate that exactly The contributions are classified as Defined
discounts the estimated future cash receipts over Contribution Scheme as the company has no
the expected life of the financial instrument or a further defined obligations beyond the monthly
shorter period, where appropriate, to the gross contributions.
carrying amount of the financial asset.
Defined benefit plans:
(d) Other income Defined benefit schemes in the form of gratuity
Other items of income are accounted as and liability and post-retirement medical benefits,
when the right to receive such income arises and the cost of providing benefits is determined
it is probable that the economic benefits will flow using the Projected Unit Credit Method, with
to the company and the amount of income can actuarial valuations being carried out at each
be measured reliably. balance sheet date, which recognises each
period of service as giving rise to additional unit
15. Government grants and incentives of employee benefit entitlement and measures
each unit separately to build up the final
Government incentives, such as export benefits etc., obligation.
are recognised at fair value when there is reasonable
assurance that the Company will comply with the The obligation is measured at the present
relevant conditions and the grant will be received. value of the estimated future cash flows. The
discounting rate used for determining the
The Government incentives are recognised in profit or present value of the obligation under defined
loss on a systematic basis over the period in which the benefit plans, is based on the market yields on
Company recognizes as expenses. The related costs government securities as at the balance sheet
for which the incentives are intended to compensate date, having maturity periods approximately to
or immediately if the costs have already been incurred. the terms of related obligations.

Changes in the present value of the defined

16. Employee benefit plans
benefit obligation resulting from Investment
(a) Short-term employee benefits: plan amendments are recognised immediately
All employee benefits falling due wholly within in the Statement of profit or loss as past service
twelve months of rendering service are classified cost.
as short-term employee benefits. Benefits, such The retirement benefit obligations recognised in
as, salaries, wages, short-term compensated the balance sheet represents that present value
absences, performance incentives, etc., and the of the defined benefit obligation as adjusted for
expected cost of bonus, ex-gratia are recognised unrecognised past service cost and as reduced
during the period in which the employee renders by the fair value of the scheme of assets.
related service.
In case of funded plans, the fair value of the
(b) Post-employment benefits: plan asset is reduced from the gross obligations
under the defined benefit plans to recognize the
Defined contribution plans: obligation on a net basis.
The Company’s contribution to defined
contribution plans, namely State governed (c) Long-term employee benefits:
provident fund, superannuation fund, employee Compensated absences which are not expected
state insurance scheme, employee pension to occur within twelve months after the end of
scheme and labour welfare fund are charged the period in which the employee renders the
as an expense based on the amount of related services are recognised as a liability
contribution required to be made and when at the present value of the defined benefit
services are rendered by the employees. obligation at the balance sheet date.

210 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

(d) Termination benefits: (i) the contract involves the use of an identified
Termination benefits are recognised as an asset; (ii) the Company has substantially all of the
expense in the period in which they are incurred. economic benefits from use of the asset through the
period of the lease; and (iii) the Company has the
(e) Share-based Payments: right to direct the use of the asset.

Employees of the Company receive At the date of commencement of the lease, the
remuneration in the form of Share-based Company recognises a Right-of-Use asset (ROU)
Payments in consideration of the services and a corresponding lease liability for all lease
rendered. arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short-
Under the equity settled share-based payment, term leases) and low value leases. For these short-
the fair value on the grant date of the award term and low value leases, the Company recognises
given to employees is recognised as ‘employee the lease payments as an operating expense on a
benefit expense’ with a corresponding increase straight-line basis over the term of the lease.
in equity over the vesting period. The fair value
of the options at the grant date is calculated Certain lease arrangements include the options to
by an independent valuer basis Black Scholes extend or terminate the lease before the end of the
model. At the end of each reporting period, lease term. ROU assets and lease liabilities includes
apart from the non-market vesting condition, these options when it is reasonably certain that they
the expense is reviewed and adjusted to reflect will be exercised.
changes to the level of options expected to vest.
When the options are exercised, the Company The ROU assets are initially recognised at cost,
issues fresh equity shares. which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
17. Leases- Operating prior to the commencement date of the lease plus
Ind AS 116, Leases, requires lessees to determine any initial direct costs less any lease incentives.
the lease term as the non-cancellable period of a They are subsequently measured at cost less
lease adjusted with any option to extend or terminate accumulated depreciation and impairment losses.
the lease, if the use of such option is reasonably
The ROU assets are depreciated from the
certain. The Company makes an assessment on the
commencement date on a straight-line basis over
expected lease term on a lease-by-lease basis and
the shorter of the lease term and useful life of the
thereby assesses whether it is reasonably certain
underlying asset. ROU assets are evaluated for
that any options to extend or terminate the contract
recoverability whenever events or changes in
will be exercised. The lease term in future periods is
circumstances indicate that their carrying amounts
reassessed to ensure that the lease term reflects the
may not be recoverable. For the purpose of
current economic circumstances.
impairment testing, the recoverable amount (i.e.,
the higher of the fair value less cost to sell and the
The Company as a lessee:
value-in-use) is determined on an individual asset
The Company’s lease asset classes primarily consist basis unless the asset does not generate cash flows
of leases for land and buildings. The Company that are largely independent of those from other
assesses whether a contract contains a lease, at assets. In such cases, the recoverable amount is
inception of a contract. A contract is, or contains, determined for the Cash Generating Unit (CGU) to
a lease if the contract conveys the right to control which the asset belongs.
the use of an identified asset for a period of time
in exchange for consideration. To assess whether The lease liability is initially measured at amortised
a contract conveys the right to control the use of cost at the present value of the future lease
an identified asset, the Company assesses whether: payments. The lease payments are discounted using

Annual Report 2020-21 211

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

the interest rate implicit in the lease or, if not readily recognition of an asset or liability in a transaction
determinable, using the incremental borrowing rates other than a business combination that at the
in the country of domicile of these leases. Lease time of the transaction affects neither accounting
liabilities are remeasured with a corresponding profit nor taxable profit (tax loss).
adjustment to the related ROU asset if the Company
changes its assessment if whether it will exercise an Deferred tax assets are recognised for deductible
extension or a termination option. temporary differences (if any) to the extent that
it is probable that future taxable profits will be
Lease liability and ROU asset have been separately available against which they can be used. The
presented in the Balance sheet and lease payments existence of unused tax losses is strong evidence
have been classified as financing cash flows. that future taxable profit may not be available.
Therefore, in case of history of recent losses, the
18. Income taxes Company recognises a deferred tax asset only to
the extent that it has sufficient taxable temporary
Income tax expense comprises current and deferred
difference or there is convincing other evidence
tax. It is recognised in Statement of profit and loss
that sufficient taxable profits will be available
except to the extent that it relates to items recognised
against which such deferred tax asset can be
directly in equity or in other comprehensive income.
realized.

(a) Current tax

Deferred tax assets and deferred tax liabilities are
Current tax is determined as the amount of tax reviewed at each reporting date and are reduced
payable in respect of taxable income for the to the extent that it is no longer probable that the
year. The Company’s current tax is calculated related tax benefit will be realized. Unrecognised
using tax rates that have been enacted by the deferred tax assets are reassessed at each
end of the reporting period. reporting date and recognised to the extent that
it has become probable that future taxable profits
Current tax assets and liabilities are offset only will be available against which they can be used.
if:
Deferred tax is measured at the tax rates that are
i) there is a legally enforceable right to set expected to be applied to temporary differences
off current tax assets against current tax when they reverse, using tax rates enacted or
liabilities and when they relate to income substantively enacted at the reporting date and
taxes levied by the same taxation authority; are expected to apply when the related deferred
and income tax asset is realized or the deferred
income tax liability is settled.
ii) there is intention either to settle on a net
basis, or to realise the asset and settle the Deferred tax assets and liabilities are offset, only
liability simultaneously. if, they relate to income taxes levied by the same
taxation authority on the same taxable entity.
(b) Deferred tax
Deferred tax is recognised in respect of 19. Earnings per share (EPS)
temporary differences between the carrying Basic EPS is computed by dividing the profit
amounts of assets and liabilities for financial attributable to owners of the Company, by using
reporting purposes and the amounts used the weighted average number of equity shares
for taxation purposes. However, deferred tax outstanding during the period.
liabilities are not recognised if they arise from the
initial recognition of goodwill. Deferred income Diluted EPS is computed using the weighted average
tax is also not accounted for if it arises from initial number of equity and dilutive equity equivalent

212 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

shares outstanding during the period except where iii) Income which relates to the Company as
the results would be anti-dilutive. a whole and not allocable to segments is
included in unallocable income.
20. Exceptional items
iv) Segment results include margins on inter-
On certain occasions, the size, type or incidence
segment and sales which are reduced
of an item of income or expense, pertaining to
in arriving at the profit before tax of the
the ordinary activities of the company is such that
Company.
its disclosure improves the understanding of the
performance of the Company. Such income or
v) Segment assets and liabilities include
expense is classified as an exceptional item and
those directly identifiable with the
accordingly, disclosed in the notes to the financial
respective segments. Unallocable assets
statements.
and liabilities represent the assets and
liabilities that relate to the Company as a
21. Segment accounting
whole and not allocable to any segment.
(a) Segment accounting policies:
Segment accounting policies are in line with (b) Inter-segment transfer pricing:
the accounting policies of the Company. The Segment revenue resulting from transactions
Company identifies primary business segment with other business segments is accounted
based on the different risks and returns, the on the basis of transfer price agreed between
organization structure and the internal reporting the segments. Such transfer prices are either
systems. Secondary segments are identified determined to yield a desired margin or agreed
on the basis of geography in which sales have on a negotiated basis.
been effected. In addition, the following specific
accounting policies have been followed for 22. Statement of cash flows
segment reporting:
Cash flows are reported using the indirect method,
whereby profit or loss before tax is adjusted for the
i) Segment revenue includes sales and other
effects of transactions of non-cash nature and any
income directly identifiable with / allocable
deferrals or accruals of past or future cash receipts
to the segment including inter-segment
or payments. The cash flows from operating,
revenue.
investing and financing activities of the Company
are segregated based on the available information.
ii) Expenses that are directly identifiable with/
allocable to segments are considered for
Cash and cash equivalents (including bank
determining the segment result. Expenses
balances) shown in the Statement of cash flows
which relate to the Company as a whole
exclude items which are not available for general
and not allocable to segments are included
use as at the date of balance sheet.
under unallocable expenditure.

Annual Report 2020-21 213

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

2 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

` crore
Gross block (Cost) Depreciation/ Amortisation Net Block
As at 1st Additions Deductions As at 31st Upto 31st For the Deductions Upto 31st As at 31st As at 31st
ASSETS
April, March, March, year March, March, March,
2020 2021 2020 2021 2021 2020
(i)  roperty, plant and equipment
P
Owned assets:
Freehold land 4.41 - - 4.41 - - - - 4.41 4.41
Leasehold land 2.69 - - 2.69 0.75 0.03 - 0.78 1.91 1.94
Buildings:
Owned assets 35.03 10.90 0.01 45.92 6.28 1.78 0.00 8.06 37.86 28.75
Right-of-Use assets 50.75 4.14 - 54.89 9.28 10.28 - 19.56 35.33 41.47
Plant and equipment 65.63 17.00 0.35 82.28 27.58 11.43 0.21 38.80 43.48 38.05
Furniture and fixtures 4.63 0.23 0.12 4.74 2.17 0.56 0.07 2.66 2.08 2.46
Office equipment 11.40 3.35 0.11 14.64 6.21 2.83 0.09 8.95 5.69 5.19
Vehicles 4.44 0.45 0.66 4.23 1.65 0.89 0.31 2.23 2.00 2.79
Sub-total (i) 178.98 36.07 1.25 213.80 53.92 27.80 0.68 81.04 132.76 125.06
(ii) Intangible assets
Goodwill 779.41 - - 779.41 - - - - 779.41 779.41
Subtotal (ii) 779.41 - - 779.41 - - - - 779.41 779.41
(iii) Other Intangibles
Computer software 9.56 0.21 - 9.77 5.11 1.89 - 7.00 2.77 4.45
Technical knowhow 1.90 - - 1.90 1.89 - - 1.89 0.01 0.01
Research and development 0.68 - - 0.68 0.64 - - 0.64 0.04 0.04
Sub-total (iii) 12.14 0.21 - 12.35 7.64 1.89 - 9.53 2.82 4.50
Total (i) + (ii)+(iii) 970.53 36.28 1.25 1,005.56 61.56 29.69 0.68 90.57 914.99 908.97
Notes: (a) Cost of freehold land included ` 0.34 crore (Previous year ` 0.34 crore) for which conveyance is yet to be completed.
(b) Cost / valuation of buildings includes ownership accommodation in various co-operative societies and apartments: ` 0.67 crore;
(Previous year ` 0.67 crore), including 3 shares of ` 100 each, which is in the process of transferring in the Company’s name.
(c) Carrying amount of property, plant and equipment and intangible assets given as collateral for borrowings is ` 785.41 crore;
(Previous year ` 785.44 crore).
` crore
Gross block (Cost) Depreciation/ Amortisation Net Block
As at 1st Additions Deductions As at 31st Upto 31st For the Deductions Upto 31st As at 31st As at 31st
ASSETS
April, March, March, year March, March, March,
2019 2020 2019 2020 2020 2019
(i)  roperty, plant and equipment
P
Owned assets:
Freehold land 4.41 - - 4.41 - - - - 4.41 4.41
Leasehold land 2.69 - - 2.69 0.72 0.03 - 0.75 1.94 1.97
Buildings:
Owned assets 30.27 4.76 - 35.03 4.67 1.61 - 6.28 28.75 25.60
Right-of-Use assets - 50.75 - 50.75 - 9.28 - 9.28 41.47 -
Plant and equipments 54.14 12.81 1.32 65.63 18.18 9.95 0.55 27.58 38.05 35.96
Furniture and fixtures 4.75 0.11 0.23 4.63 1.69 0.57 0.09 2.17 2.46 3.06
Office equipment 8.36 3.27 0.23 11.40 3.86 2.50 0.15 6.21 5.19 4.50
Vehicles 4.18 0.93 0.67 4.44 1.13 0.89 0.37 1.65 2.79 3.05
Sub-total (i) 108.80 72.63 2.45 178.98 30.25 24.83 1.16 53.92 125.06 78.55
(ii) Intangible assets
Goodwill 779.41 - - 779.41 - - - - 779.41 779.41
Subtotal (ii) 779.41 - - 779.41 - - - - 779.41 779.41
(iii) Other Intangibles
Computer software 8.29 1.27 - 9.56 3.39 1.72 - 5.11 4.45 4.90
Technical know-how 1.90 - - 1.90 1.67 0.22 - 1.89 0.01 0.23
Research and development 0.68 - - 0.68 0.62 0.02 - 0.64 0.04 0.06
Sub-total (iii) 10.87 1.27 - 12.14 5.68 1.96 - 7.64 4.50 5.19
Total (i) + (ii)+(iii) 899.08 73.90 2.45 970.53 35.93 26.79 1.16 61.56 908.97 863.15

214 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

3 NON-CURRENT FINANCIAL ASSETS - OTHERS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Security deposits 6.15 6.84
Deposits with banks (with maturity period of more than 12 months) - 0.28
Others - 0.70
Total 6.15 7.82
Note: Deposits of ` Nil (Previous year ` 0.28 crore) are under lien with banks.

4 OTHER NON-CURRENT ASSETS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Capital advances 6.36 9.28
Less: Allowance for doubtful advances (1.07) (1.07)
5.29 8.21
Others 14.80 14.58
Total 20.09 22.79

5 INVENTORIES (At lower of cost and net realisable value)

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Raw materials 75.44 60.48
Add: Goods-in-transit 3.56 3.55
79.00 64.03
Work-in-progress - manufacturing 23.18 16.65
Finished goods - manufacturing 117.69 90.61
Add: Goods-in-transit 15.06 15.09
132.75 105.70
Stock-in-trade 242.22 236.22
Add: Goods-in-transit 37.05 37.56
279.27 273.78
Stores, spares and packing materials 4.44 3.45
518.64 463.61
Note: Inventories are hypothecated with the bankers against working capital facilities.(Refer Note 16).

Annual Report 2020-21 215

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

6 CURRENT FINANCIAL ASSETS - INVESTMENTS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
- Measured at Amortised Cost
Investment in Bonds (Quoted) 31.17 10.50
- Measured at Fair value through Profit and Loss
Investment in Mutual funds (Unquoted) 738.56 530.32
769.73 540.82
Aggregate amount of quoted investments and market value thereof:
Book value 31.17 10.50
Market value 31.17 10.50
Aggregate amount of unquoted investments:
Book value (accounted based on NAV) 738.56 530.32

7 CURRENT FINANCIAL ASSETS - TRADE RECEIVABLES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Unsecured
Trade receivables, considered good 491.18 463.46
Trade receivable, considered doubtful 21.24 23.24
512.42 486.70
Less: Allowance for doubtful trade receivables 21.24 23.24
Total 491.18 463.46

8 CURRENT FINANCIAL ASSETS - CASH AND CASH EQUIVALENTS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Balance with banks :
In current accounts 15.54 12.00
In deposit accounts (with less than 3 months maturity) 246.85 12.00
Cash on hand 0.03 0.03
Total 262.42 24.03

216 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

9 CURRENT FINANCIAL ASSETS - OTHER BANK BALANCES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Deposits with maturity more than 3 months but less than 12 months 339.03 22.40
Unclaimed dividend account 2.50 1.69
Total 341.53 24.09

10 CURRENT FINANCIAL ASSETS - OTHERS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Security deposits 13.15 12.77
13.15 12.77

11 OTHER CURRENT ASSETS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Advance to suppliers 51.03 30.32
Balances with Indirect tax authorities 4.84 16.22
Other recoverables 50.36 39.21
Others 83.06 48.30
Total 189.29 134.05

12 SHARE CAPITAL
As at 31st March, 2021 As at 31st March, 2020
Particulars Amount Amount
Number Number
` crore ` crore
Authorised capital
Equity shares of ` 2 each 65,50,00,000 131.00 65,00,00,000 130.00

Issued, subscribed and paid-up

Equity shares of ` 2 each, fully paid-up 62,76,91,353 125.54 62,72,83,972 125.46
62,76,91,353 125.54 62,72,83,972 125.46

Annual Report 2020-21 217

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
As at 31st March, 2021 As at 31st March, 2020
Particulars Amount Amount
Number Number
` crore ` crore
Outstanding at the beginning of the year 62,72,83,972 125.46 62,69,85,920 125.40
Shares issued on account of exercising 4,07,381 0.08 2,98,052 0.06
Employee stock option plans
Outstanding at the end of the year 62,76,91,353 125.54 62,72,83,972 125.46

b. Rights, preferences and restrictions on shares

The Company has one class of share capital, i.e., equity shares having face value of ` 2 per share. Each holder of equity
share is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

c. Details of shareholders holding more than 5% shares in the Company

As at 31st March, 2021 As at 31st March, 2020
Particulars
Number % holding Number % holding
Equity shares of ` 2 each fully paid
SBI Mutual Fund 3,84,09,761 6.12% 3,20,52,041 5.11%
Macritchie Investments Pte Ltd   3,76,12,367 5.99% 5,65,38,546 9.01%
Amalfiaco Limited  3,36,67,802 5.36% 10,77,41,623 17.18%
Aditya Birla Sun Life Trustee Private Limited 2,88,55,262 4.60% 3,13,70,834 5.00%

d. Shares reserved for issuance under Stock Option Plans of the Company at face value of ` 2 (Also Refer
Note 39)
As at 31st March, 2021 As at 31st March, 2020
Particulars
Number Amount ` crore Number Amount ` crore
Crompton Stock Option Plan 2016 (ESOP 2016) 26,33,826 0.53 34,15,883 0.68
Crompton Performance Share Plan 1 2016 (PSP 1) 1,06,27,872 2.13 1,07,53,536 2.15
Crompton Performance Share Plan 2 2016 (PSP 2) 30,79,392 0.62 30,86,725 0.62
Crompton Stock Option Plan 2019 (ESOP 2019) 74,96,499 1.50 3,70,000 0.07

e. There are no bonus shares issued/ shares bought back.

f. There are no shares reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment.

g. The Board of Directors have recommended payment of final dividend of ` 2.50 (Rupees two and Paisa fifty only) per
equity share of the face value of ` 2 each for the financial year ended 31st March, 2021. An interim dividend of ` 3 (Rupees
three only) per equity share of the face value of ` 2 each was declared at the Board Meeting held on 22nd October, 2020
and the same was paid on 13th November, 2020. The total dividend for the year including the final dividend will be
` 5.50 (Rupees five and Paisa fifty only) per equity share of the face value of ` 2 each.

218 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

13 OTHER EQUITY
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Capital reserve 0.05 0.05
Securities premium 24.01 13.36
Employee stock option outstanding account 162.53 141.24
Retained earnings 1,543.12 1,114.25
Other comprehensive income 1.18 (1.01)
Debenture redemption reserve 75.00 75.00
Total 1,805.89 1,342.88
Note: For movements in reserves - refer Consolidated Statement of Changes in Equity.
Nature and purpose of reserves
Capital reserve
Capital reserve was created on cancellation of shares as per statutory requirement.
Securities premium
Securities premium was created on issue of shares at premium in accordance with Employee Stock Option Plans (ESOP).
Employee stock option outstanding
The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of profit and
loss with corresponding credit to Employee Stock Options Outstanding Account.
Retained earnings
Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve, dividends
or other distributions paid to shareholders.
Debenture redemption reserve
Debenture redemption reserve is a Statutory Reserve (as per the Companies Act, 2013) created out of profits of the Company
for the purpose of redemption of debentures issued by the Company. The Company is required to maintain a Debenture
Redemption Reserve of 25% of the value of debenture issued, either by a public issue or on a private placement basis. The
amounts credited to the debenture redemption reserve cannot be utilised by the Company except to redeem debentures. On
completion of redemption, the reserve is transfered to retained earnings.

Annual Report 2020-21 219

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

14 FINANCIAL LIABILITIES - BORROWINGS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Measured at amortized cost
i) Non-Current Borrowings
Secured
Debentures 298.79 179.72
298.79 179.72
ii) Current maturities of Borrowings - (Refer Note 18)
Debentures 180.00 170.00
Total 478.79 349.72

Terms of Debentures:
Particulars of Debentures Series C (2016 issue) Series A (2020 issue) Series B (2020 issue)
Face value per debenture (`) 10,00,000 10,00,000 10,00,000
Date of allotment 24 June, 2016
th
29 May, 2020
th
29 May, 2020
th

As at 31st March, 2021 (` crore) 180.00 150.00 150.00

As at 31 March, 2020 (` crore)
st
180.00 - -
Interest 8.95% p.a. payable annually 7.25% p.a. payable annually 7.25% p.a. payable annually
Terms of repayment Due for redemption on Due for redemption on Due for redemption on
24-06-2021 29-05-2023, with call option 29-05-2023, with call option
on 29-11-2021 on 27-05-2022

Debentures are secured by:

(a) Charge on ‘Crompton’ Brand and Registered Trade Marks of the Company; and
(b) Charge by way of equitable mortgage by deposit of title deeds/relevant documents of movable and immovable properties
situated in the State of Maharashtra, Himachal Pradesh and Goa.

15 NON-CURRENT PROVISIONS
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Provision for employee benefits (post medical retirement benefits, compensated
absences) 21.44 19.11
Total 21.44 19.11

220 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

16 CURRENT FINANCIAL LIABILITIES - BORROWINGS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Secured
Working capital demand loan from bank - -
Total - -
Note: Working capital demand loan is secured by way of charge on the Company’s inventories and trade receivables.

17 CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Acceptances 101.62 126.60
Due to micro and small enterprises 35.60 3.30
Due to creditors other than micro and small enterprises 727.45 513.67
Total 864.67 643.57

18 CURRENT FINANCIAL LIABILITIES - OTHERS

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Current maturities of non-convertible debentures (Refer Note 14) 180.00 170.00
Interest accrued but not due on borrowings 30.65 24.12
Security deposits 24.10 23.02
Total 234.75 217.14

19 OTHER CURRENT LIABILITIES

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Advances from customers 5.86 8.08
Statutory dues payables 16.38 5.79
Unpaid dividend 2.50 1.69
Others 36.72 42.75
Total 61.46 58.31

Annual Report 2020-21 221

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

20 CURRENT PROVISIONS
` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Provision for employee benefits (post medical retirement benefits, compensated
absences) 2.01 2.46
Other provisions (Refer Note below) 202.75 163.05
Total 204.76 165.51

Note:

` crore
Sales tax / VAT/ Other litigation
(1) Movement of provisions Warranty
Other taxes claims
Carrying amount at the beginning of the year 145.32 12.65 0.06
Additional provision made during the year 56.73 - -
Amounts used during the year (24.78) - -
Unused amounts reversed during the year - - -
Carrying amount at the end of the year 177.27 12.65 0.06

` crore
Movement of provisions Others Total
Carrying amount at the beginning of the year 5.02 163.05
Additional provision made during the year 12.77 69.50
Amounts used during the year (5.02) (29.80)
Unused amounts reversed during the year - -
Carrying amount at the end of the year 12.77 202.75

(2) Nature of provisions:

(a) Product warranties: The Company gives warranties on certain products and services, undertaking to repair /
replace products, which fail to perform satisfactorily during the warranty period. Provision made represents the
amount of the expected cost of meeting such obligation on account of repair / replacement. The timing of outflows
is expected to be within a period of two year.

(b) Provision for sales tax / VAT / other taxes represents liability on account of non-collection of declaration forms and
other legal matters which are in appeal under the Acts / Rules.

(c) Provision for other litigation obligation claims represents liabilities that are expected to materialise in respect of
matters in appeal.

(d) Others represent provision made towards probable cash discount and probable return of goods from customer.

222 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

21 INCOME TAXES
(a) Tax expense recognised in Statement of profit and loss comprises :
` crore
Particulars 2020-21 2019-20
Current income tax charge net of writebacks (Refer Note 44) 115.61 84.00
Deferred tax (asset) / liability (net)
Origination and reversal of temporary differences (8.63) 10.30
Tax expense for the year 106.98 94.30

(b) Amounts recognised in Other comprehensive income

` crore
2020-21 2019-20

Particulars Tax Tax

Before tax (expense)/ Net of tax Before tax (expense)/ Net of tax
benefit benefit
Items that will not be reclassified
to profit or loss
Remeasurements gains / (losses)
on post employment defined benefit
plans and tax thereon 2.93 (0.74) 2.19 (2.88) 0.73 (2.16)
2.93 (0.74) 2.19 (2.88) 0.73 (2.16)

(c) Reconciliation of effective tax rate

` crore
Particulars 2020-21 2019-20
Profit before tax 723.63 590.69
Applicable tax rate* 25.17% 25.17%
Computed tax expense 182.12 148.66
Exempted dividend income - -
Tax incentive under Section 80-IC of Income tax Act, 1961 - -
Others** (75.14) (54.36)
Income tax expense for the current year 106.98 94.30
Effective tax rate 14.78% 15.97%
* The Company has elected to exercise the option permitted under Section 115BAA of the Income tax Act, 1961 as
introduced by the Taxation Laws (Amendment) Act, 2019. Accordingly, the Company has recognised provision for
income tax for year ended 31st March, 2020.
** Others includes refunds, adjustment due to completed assessments and impact of rate change.

Annual Report 2020-21 223

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

(d) Components of deferred tax assets / (liabilities) recognised in Balance sheet and Statement of profit
and loss:

` crore
Balance sheet Statement of profit and loss
Sr.
Particulars As at As at
no. 2020-21 2019-20
31st March, 2021 31st March, 2020
(a) Deferred tax asset on employee stock
option outstanding 38.25 32.89 5.36 (5.67)
(b) Items disallowed under Section
43B of the Income tax Act, 1961 on
payment basis 10.86 9.86 1.00 (1.94)
(c) Allowance for doubtful debts and
advances 5.35 5.85 (0.50) (1.01)
(d) Difference between book depreciation
and tax depreciation (0.72) (1.88) 1.16 2.23
(e) Other temporary differences 4.81 3.95 1.61 (3.92)
Deferred tax income /(expense) 8.63 (10.31)
Net deferred tax assets / (liabilities) 58.55 50.67

(e) Reconciliation of deferred tax assets/(liabilities):

` crore
Sr.
Particulars 2020-21 2019-20
no.
(a) Opening balance as at 1st April 50.67 60.25
(b) Tax (income)/expense during the period recognised in:
(i) Statement of profit and loss in profit or loss 8.63 (10.31)
(ii) Statement of profit and loss under OCI (0.74) 0.73
(c) Closing balance as at 31 March st
58.55 50.67

224 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

22 Revenue from Operations

` crore
Particulars 2020-21 2019-20
A. Sales of products and services
Sale of products (excluding GST, as applicable)
(i) Electric consumer durables 3,800.18 3,384.41
(ii) Lighting products 986.66 1,115.97
4,786.84 4,500.38
Sale of services
(i) Electric consumer durables 0.88 0.27
(ii) Lighting products 4.47 4.82
5.35 5.09
4,792.19 4,505.47
B. Other operating revenue
Export benefits and other incentives 1.43 6.68
Scrap sales 9.89 8.11
11.32 14.79
Total 4,803.51 4,520.26

23 OTHER INCOME
` crore
Particulars 2020-21 2019-20
Interest income 31.37 23.38
Net gain / (loss) on sale or fair valuation of investments 43.66 33.96
Other 0.72 1.71
Total 75.75 59.05

24 COST OF MATERIALS CONSUMED

` crore
Particulars 2020-21 2019-20
Opening stock 64.03 79.32
Add: Purchases 946.79 907.91
Less: Closing stock 79.00 64.03
Raw materials consumed 931.82 923.20
Add: Sub-contracting charges 54.49 56.26
Total 986.31 979.46

Annual Report 2020-21 225

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

25 PURCHASE OF STOCK-IN-TRADE
` crore
Particulars 2020-21 2019-20
Electric consumer durables 1,814.18 1,636.57
Lighting products 505.82 580.59
Total 2,320.00 2,217.16

26 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

` crore
Particulars 2020-21 2019-20
Opening Stock :
Finished goods 105.70 61.76
Stock-in-trade 273.78 181.05
Work-in-progress 16.65 27.03
396.13 269.84
Less:
Closing Stock:
Finished goods 132.75 105.70
Stock-in-trade 279.27 273.78
Work-in-progress 23.18 16.65
435.20 396.13
Changes in inventories:
Finished goods (27.05) (43.94)
Stock-in-trade (5.49) (92.73)
Work-in-progress (6.53) 10.38
(39.07) (126.29)

27 EMPLOYEE BENEFITS EXPENSE

` crore
Particulars 2020-21 2019-20
Salaries, wages, bonus and other benefits 282.26 257.69
Contribution to provident and other funds 12.21 11.19
Staff welfare expenses 16.94 19.24
Share-based Payments to employees (Refer Note 38) 25.17 22.83
Total 336.58 310.95

226 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

28 FINANCE COSTS
` crore
Particulars 2020-21 2019-20
Interest 42.91 40.67
42.91 40.67

29 OTHER EXPENSES
` crore
Particulars 2020-21 2019-20
Consumption of stores and spares 11.37 14.92
Power and fuel 4.56 5.61
Rent 14.66 13.36
Repair to property, plant and equipment 2.54 2.61
Insurance 3.63 1.91
Rates and taxes 2.24 4.30
Freight and forwarding 135.16 131.33
Packing materials 62.77 60.18
After sales service 44.07 51.27
Sales promotion 51.80 49.40
Corporate social responsibility expenses (Refer Note 32) 10.99 10.01
Advertising 30.40 49.53
Legal and professional charges 59.50 69.85
Miscellaneous expenses 45.52 75.60
Total 479.21 539.88

Payment to the auditors (included in Miscellaneous expenses)

Auditors' remuneration (excluding taxes)
Audit fees 0.42 0.42
Tax audit fees 0.08 0.08
Other services -
(i) Certification work 0.02 0.04
(ii) Others 0.30 0.30
Reimbursement of expenses 0.02 0.06
0.84 0.90

Annual Report 2020-21 227

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

30 CONTINGENT LIABILITIES AND COMMITMENTS

` crore
Sr. As at As at
Particulars
no. 31st March, 2021 31st March, 2020
A Contingent Liabilities (to the extent not provided for):
(a) Claims against the Company not acknowledged as debts 23.72 23.69
(b) Income tax liability that may arise in respect of matters in appeal 29.01 28.68
(c) Excise duty/ customs duty / service tax liability that may arise in respect of
matters in appeal 5.96 5.60
(d) GST/ Entry Tax/ Sales tax / VAT liability that may arise in respect of matters in
appeal 112.97 57.11

B Commitments:
Estimated amount of contracts remaining to be executed on capital account
and not provided for (net of advances) 6.48 23.02
Notes:
1. The Company does not expect any reimbursements in respect of the above contingent liabilities.
2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above, pending
resolution of the arbitration/appellate proceedings.

31 EXPENDITURE ON RESEARCH AND DEVELOPMENT

` crore
Sr.
Particulars 2020-21 2019-20
no.
(a) Capital expenditure 1.40 1.81
Sub-total (a) 1.40 1.81
(b) Revenue expenditure
Raw materials consumed - 0.16
Employee benefits 13.18 9.61
Depreciation and amortisation 3.32 1.52
Other expenses
Consumption of stores and spares 0.89 0.45
Repairs and maintenance 0.02 0.02
Miscellaneous expenses 4.23 4.53
Sub-total (b) 21.64 16.29
Total (a) + (b) 23.04 18.10

228 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

32 EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

The particulars of CSR expenditure are as follows:
(a) Gross amount required to be spent by the Company during the year is ` 10.99 crore; (Previous year ` 9.97 crore)
(b) Amount spent during the year is ` 10.99 crore; (Previous year ` 10.01 crore)
` crore
2020-21 2019-20
Sr. Disclosed Yet to be Yet to be
Particulars
no. under In Cash paid in Total In Cash paid in Total
cash cash
i) Construction/acquisition of
assets charged to the statement
of profit and loss - - - - - - -
ii) For purpose other than (i) above Note 29 10.99 - 10.99 10.01 - 10.01
Total 10.99 - 10.99 10.01 - 10.01

33 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 116, LEASES

Company as lessee
A Right-of-Use assets
Buildings

` crore
Cost 2020-21 2019-20
Opening Balance 50.75 -
Additions 4.14 50.75
Disposal / derecognized during the year - -
Closing Balance 54.89 50.75
Accumulated depreciation
Opening Balance 9.28 -
Depreciation expense 10.28 9.28
Disposal / derecognized during the year - -
Closing Balance 19.56 9.28
Closing Balance 35.33 41.47

Annual Report 2020-21 229

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

B Lease liabilities
Buildings
` crore
Particulars 2020-21 2019-20
Opening Balance 43.94 -
Addition 4.14 50.75
Accredition of interest 3.15 1.98
Payments (11.90) (8.79)
Adjustments for disposals - -
Closing Balance 39.33 43.94

C Amounts recognised in Statement of profit and loss

` crore
Particulars 2020-21 2019-20
Depreciation expense of Right-of-Use assets (Refer Note 2) 10.28 9.28
Interest expense on lease liabilities 3.15 1.98
13.43 11.26

34 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 19, EMPLOYEE BENEFITS
(a) Defined contribution plans (Refer Accounting Policy Note 1.16).
Amount of ` 12.21 crore (Previous year ` 11.19 crore) is recognised as an expense and included in Employee
benefits expense as under the following defined contribution plans: (Refer Note 27).
` crore
Benefits (Contribution to) 2020-21 2019-20
Provident fund 7.47 7.23
Superannuation fund 1.26 1.37
Employee state insurance scheme 0.25 0.29
Labour welfare scheme 0.01 0.01
Gratuity 2.61 1.86
National Pension Scheme 0.61 0.43
Total 12.21 11.19

230 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

(b) Defined Benefit Plans (Refer Accounting Policy Note 1.16) as per Actuarial Valuation are as under:
` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
I Change in present value of defined benefit
obligation during the year
Present value of defined benefit obligation at the
beginning of the year 22.85 20.65 6.44 5.84
Amount recognised in statement of profit and
loss
Interest cost 1.56 1.54 0.44 0.46
Current service cost 2.49 2.08 0.45 0.37
Past service cost - - - -
Amount recognised in other comprehensive
income
Actuarial (gains) / losses 0.91 1.17 (0.21) (0.07)
Financial assumptions 0.62 0.89 (0.10) -
Due to experience 0.29 0.28 (0.11) -
Benefits paid (2.31) (2.59) (0.19) (0.16)
Present Value of defined benefit obligation at the
end of the year 25.50 22.85 6.93 6.44
II Change in fair value of plan assets during the
year
Fair value of plan assets at the beginning of the
year 21.10 23.68 - -
Expected return on plan assets 1.44 1.77 - -
Contributions 3.00 - - -
Benefits paid from the fund (0.09) (2.57) - -
Amount recognised in other comprehensive
income - - - -
Actuarial gain / (loss) 3.63 (1.78) - -
Fair value of plan assets at the end of the year 29.08 21.10 - -
III Actual return on plan assets
Expected return on plan assets 1.44 1.77 - -
Actuarial gain / (loss) 3.63 (1.78) - -
Actual return on plan assets 5.07 (0.01) - -

Annual Report 2020-21 231

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
IV Net asset / (liability) recognised in the balance
sheet
Present Value of defined benefit obligation at the
end of the year (25.50) (22.86) (6.93) (6.44)
Fair value of plan assets at the end of the year 29.08 21.10 - -
Asset / (Liability) recognised in the balance sheet 3.58 (1.76) (6.93) (6.44)
V Expenses recognised in the statement of profit
and loss
Current service cost 2.49 2.09 0.45 0.37
Interest cost 0.12 (0.23) 0.44 0.46
Past Service cost - - - -
2.61 1.86 0.89 0.83
VI Expenses recognised in the Other
comprehensive income
Remeasurements (gain) / loss on defined benefit
plans (2.73) 2.95 (0.20) (0.07)
VII The major categories of plan assets as a
percentage of total plan
Insurer managed funds 100% 100% NA NA
VIII Sensitivity analysis for significant
assumptions:
Increase/(Decrease) on present value of defined
benefits obligation at the end of the year
1% increase in discount rate (1.56) (1.35) (0.85) (0.79)
1% decrease in discount rate 1.76 1.51 1.08 1.01
1% increase in salary escalation rate 1.75 1.51 - -
1% decrease in salary escalation rate (1.58) (1.37) - -
1% increase in employee turnover rate (0.04) 0.01 - -
1% decrease in employee turnover rate 0.03 (0.01) - -
1% increase in Medical inflation rate - - 1.09 1.01
1% decrease in Medical inflation rate - - (0.86) (0.80)

232 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

` crore
Post Retirement Medical
Gratuity
Sr. Benefits
Particulars
no. 2020-21 2019-20 2020-21 2019-20
(Funded) (Funded) (Non funded) (Non funded)
IX Maturity profile of defined benefit obligations
Within the next 12 months 2.31 3.21 - -
Between 1 and 5 years 11.41 8.51
Between 5 and 10 years 11.78 11.13
X Actuarial assumptions
Discount rate 6.44% 6.82% 6.91% 6.81%
Expected Return on Plan Assets (p.a.) 6.44% 6.82% N.A N.A
Employee turnover rate 6.00% 6.00% 6.00% 6.00%
Salary escalation 6.00% 6.00% N.A N.A
Mortality pre retirement rate Indian Assured Indian Assured Indian Assured Indian Assured
Lives Mortality Lives Mortality Lives Mortality Lives Mortality
(2006-08) (2006-08) (2006-08) (2006-08)
Mortality post retirement rate N.A N.A Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2006-08) (2006-08)
Medical premium inflation rate N.A N.A 2% 2%

(c) 
The sensitivity analyses above have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a
change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the
assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The
methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the
previous year.
(d) The Company makes contributions to the Gratuity Trust, which manages the investment. The Trust is a funded
defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees
at retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme.
Vesting occurs upon completion of five years of service.
(e) The Company provides post retirement medical benefits to qualifying employees.
(f) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at
31st March, 2021 and 31st March, 2020. The present value of the defined benefit obligation and the related current
service cost and past service cost, were measured using the Projected Unit Credit Method.
(g) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date
for the estimated term of the obligations.
(h) Expected rate of return on the plan assets is based on the average long-term rate of return expected on investments
of the Fund during the estimated term of the obligations.
(i) The Company expects to fund ` Nil towards its gratuity plan during the year 2021-22.
(j) The salary escalation rate considered in the actuarial valuation is arrived after taking into consideration the seniority,
the promotion, inflation and other relevant factors.

Annual Report 2020-21 233

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

35 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 24, RELATED PARTY
DISCLOSURES

i) Other Related Parties:

1 ASK Wealth Advisors Private Limited
2 Crompton (CSR) Foundation

ii) Name of Post employment benefit plans with whom transactions were carried out during the
year:
1 Crompton Greaves Consumer Electricals Limited Employees’ Gratuity Trust
2 Crompton Greaves Consumer Electricals Limited Employees’ Superannuation Fund

iii) Key Management Personnel:

1 Mr. H. M. Nerurkar, Chairman and Independent Director
2 Mr. D. Sundaram, Independent Director
3 Mr. P. M. Murty, Independent Director
4 Ms. Smita Anand, Independent Director
5 Ms. Shweta Jalan, Non-Executive Director
6 Mr. Sahil Dalal, Non-Executive Director
7 Mr. Promeet Ghosh, Non-Executive Director
8 Mr. Shantanu Khosla, Managing Director
9 Mr. Mathew Job, Executive Director (from 22nd January, 2021) and Chief Executive Officer
10 Mr. Sandeep Batra, Chief Financial Officer
11 Ms. Pragya Kaul, Company Secretary

iv) Details of related party transactions:

` crore
Sr.
Nature of transaction 2020-21 2019-20
no.
1 Services received
ASK Wealth Advisors Private Limited 0.20 0.19
Total 0.20 0.19
2 Contributions (Employer's) to Post Retirement Funds
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust 3.00 -
Crompton Greaves Consumer Electricals Limited Employees'
Superannuation Fund 1.26 1.37
Total 4.26 1.37

234 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

` crore
Sr.
Nature of transaction 2020-21 2019-20
no.
3 Compensation to Key Management Personnel
Short-term benefits 15.49 19.13
Share-based Payments (Refer Note b below) 17.99 19.39
Director's sitting fees 0.42 0.26
Commission 0.72 0.62
Total 34.62 39.40
4 Donations Paid
Crompton (CSR) Foundation 9.96 0.46
Total 9.96 0.46

Notes:
a) Liabilities for post retirement benefits being Gratuity, Leave encashment and Post retirement medical
benefits are provided on actuarial basis for the Company as a whole. The amount pertaining to Key
management personnel are not included above.
b) The Company has granted shares under various Schemes to the eligible Key Management Personnel.
The amount mentioned is the fair value of the grant charged to Statement of profit and loss.
v) Amount due to / from related parties
` crore
Sr. As at As at
Nature of transaction
no. 31st March, 2021 31st March, 2020
1 Other Receivable
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust 3.58 -
Total 3.58 -
2 Other Payable
Crompton Greaves Consumer Electricals Limited Employees'
Gratuity Trust - 1.76
Crompton Greaves Consumer Electricals Limited Employees'
Superannuation Fund 0.10 0.10
Total 0.10 1.86

Notes:
a) All the related party contracts/ arrangements have been entered on arms’ length basis.
b) The amount of outstanding balances as shown above are unsecured and will be settled/ recovered in
cash.

Annual Report 2020-21 235

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

36 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 33, EARNINGS PER
SHARE
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company
by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of
Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
2020-21 2019-20
(a) Basic earnings per share
Numerator for earnings per share
Profit after tax ` crore 616.65 496.39
Denominator for earnings per share
Weighted number of equity shares outstanding during the
year Nos 62,73,66,090 62,70,96,946
Earnings per share - Basic (one equity share of ` 2 each) ` 9.83 7.92
(b) Diluted earnings per share
Numerator for earnings per share
Profit after tax ` crore 616.65 496.39
Denominator for earnings per share
Weighted number of equity shares outstanding for basic
EPS during the year Nos 62,73,66,090 62,70,96,946
Add: Weighted average number of potential equity shares
on account of Employee Stock Option Schemes Nos 53,40,705 48,68,618
Weighted number of equity shares outstanding for diluted
EPS during the year Nos 63,27,06,795 63,19,65,564
Earnings per share - Diluted (one equity share of ` 2 each) ` 9.75 7.85

37 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 36, IMPAIRMENT OF

ASSETS
For the purpose of impairment testing, goodwill is allocated to the Company’s operating division (not at segment
level), which is not higher than the Company’s operating segments. The aggregate carrying amounts of goodwill
allocated to each unit are as follows:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Electric Consumer Durables 590.10 590.10
Lighting Products 189.31 189.31
Total 779.41 779.41

The recoverable amount is based on a value-in-use calculation using the discounted cash flow method. The value-
in-use calculation is made using pre-tax budgeted EBITDA projections of the next five years which is considered
by the Board as a reasonable period.

236 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

The key assumptions used in value-in-use calculations are as follows:

a) Earnings (before interest and tax) margin: The margins have been estimated based on past experience after
considering incremental revenue and savings from the efficiencies and cost saving initiatives driven by the
Company.

b) Discount rate: Discount rate reflects the current market assessment of the risks specific to a cash generating
unit and is estimated based on the weighted average cost of capital.

c) Long-term growth rate: The growth rates used are in line with the long-term average growth rates of the
Company and are consistent with the internal / external sources of information.

The assumptions used are reviewed annually as part of management’s budgeting and strategic planning
cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions
reflect the Management’s past experience as their assessment of future trends, and are consistent with
external / internal sources of information.

Based on the above assumptions and analysis, no impairment was identified for any of the cash generating
unit as at 31st March 2021 and 31st March, 2020 as the recoverable value of the cash generating unit exceeded
the carrying value.

The Company has also performed sensitivity analysis calculations on the projections used and discount rate
applied. The Company has concluded that, given the significant headroom that exists, and the results of the
sensitivity analysis performed, there is no significant risk that reasonable changes in any key assumptions
would cause the carrying value of goodwill to exceed its value in use.

38 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 102, SHARE-BASED

PAYMENTS
Employee stock options - equity settled
(a) The Members of the Company have approved by way of postal ballots grant of Employee stock options under
various Schemes. The plan envisaged grant of shares to eligible employees at market price/pre-determined
value as determined by the Nomination and Remuneration Committee (NRC) of the Board of Directors from
time to time.

Disclosures:
` crore
Particulars 31 March, 2021
st
31 March, 2020
st

Charge for the year 25.17 22.83

Employee Stock option outstanding 162.54 141.24

Annual Report 2020-21 237

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

(b) The position of the existing schemes is summarized as under -

31st March, 2021 31st March, 2020
Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2016 ESOP 2016 PSP 1 PSP 2
Date of Shareholder's 19th
22 nd
22 nd
22nd
19
th
22 nd
22 nd
22nd
approval January, October, October, October, January, October, October, October,
2020 2016 2016 2016 2020 2016 2016 2016
Total number of options
approved under ESOS 98,00,000 40,00,000 1,09,68,057 31,33,731 48,00,000 40,00,000 1,09,68,057 31,33,731
Vesting requirements 1-5 Years 1-5 Years 1-10 Years 1-10 Years 1-5 Years 1-5 Years 1-10 Years 1-10 Years
Exercise price or pricing Exercise Price Exercise Price 92.83 185.66 Exercise Price Exercise Price 92.83 185.66
formula (`) is the closing is the closing is the closing is the closing
market price market price market price market price
on the Stock on the Stock on the Stock on the Stock
Exchange, as Exchange, as Exchange, as Exchange, as
on the day prior on the day prior on the day prior on the day prior
to the date on to the date on to the date on to the date on
which the NRC which the NRC which the NRC which the NRC
approves the approves the approves the approves the
Grant. Grant. Grant. Grant.
Maximum term of Options Options granted Options granted Options granted under Options granted Options granted Options granted under
granted (years) under ESOP under ESOP PSP 1 and PSP 2 would under ESOP under ESOP PSP 1 and PSP 2 would
2019 would vest 2016 would vest vest not earlier than one 2019 would vest 2016 would vest vest not earlier than one
not earlier than not earlier than year and not later than not earlier than not earlier than year and not later than
one year and not one year and not 10 years from the date one year and not one year and not 10 years from the date
later than 5 years later than 5 years of grant later than 5 years later than 5 years of grant
from the date of from the date of from the date of from the date of
grant. grant. grant. grant.
Source of shares (Primary, Primary
Secondary or combination)
Variation in terms of options There have been no variations in the terms of the options

(c) Options movement during the year:

31st March, 2021 31st March, 2020
Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
No. of options outstanding
at the beginning of the year 3,70,000 34,15,883 1,07,53,536 30,86,725 - 31,33,769 1,09,68,057 31,33,731
No. of options granted
during the year 71,62,750 - - - 3,70,000 10,10,000 - -
No. of options forfeited /
lapsed during the year 3,894 5,07,033 25,664 7,333 - 4,79,834 1,64,521 47,006
Number of options vested
but not exercised at the
end of the year 19,249 17,63,826 1,06,27,872 30,79,392 - 13,65,883 50,50,147 14,57,184

238 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

31st March, 2021 31st March, 2020

Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
Number of options
exercised during the year 32,357 2,75,024 1,00,000 - - 2,48,052 50,000 -
Money realised by exercise
of options (`) 83,69,138 5,50,88,628 92,83,000 - - 4,68,48,804 46,41,500 -
No. of options outstanding
at the end of the year 74,96,499 26,33,826 1,06,27,872 30,79,392 3,70,000 34,15,883 1,07,53,536 30,86,725
No. of options exercisable
at the end of the year 19,249 17,63,826 1,06,27,872 30,79,392 - 13,65,883 50,50,147 14,57,184
Weighted Average
Remaining Contractual Life
(in years) 7.92 4.15 3.55 3.52 8.09 5.31 4.91 4.90

(d) Weighted average information for year:

2020-21 2019-20
Particulars
ESOP 2019 ESOP 2016 PSP 1 PSP 2 ESOP 2019 ESOP 2016 PSP 1 PSP 2
Weighted average
exercise price of
options granted during
the year whose
Exercise price equals
market price (`) 405.95 - - - 264.73 258.65 - -
Exercise price is greater
than market price (`) - - - - - - - -
Exercise price is less
than market price (`) - - - - - - - -
Weighted average
fair value of options
granted during the year
whose
Exercise price equals
market price (`) 160.01 - - - 95.76 100.56 - -
Exercise price is greater
than market price (`) - - - - - - - -
Exercise price is less
than market price (`) - - - - - - - -

Annual Report 2020-21 239

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

(e) The Black-Scholes Valuation Model has been used for computing weighted average fair value considering
the following inputs:-

2020-21 2019-20
Particulars
ESOP 2019 ESOP 2019 ESOP 2016
Price of the underlying share in market at the time of the option
grant (`) 405.95 264.73 258.65
Exercise price (`) 405.95 264.73 258.65
Risk free interest rate (based on government securities) 5.64% 6.20% 6.49%
Expected life (years) 5.64 5.00 5.76
Expected volatility 33.25% 31.39% 30.63%
Dividend yield 0.49% 0.75% 0.77%

(f) Number and Weighted Average Exercise Price of Options

2020-21 2019-20
Particulars Weighted Average Weighted Average
Number of options Number of options
Exercise Price (`) Exercise Price (`)
Outstanding at the beginning of the year 1,76,26,144 137.24 1,72,35,557 129.18
Granted during the year 71,62,750 405.95 13,80,000 263.10
Forefeited during the year 5,43,924 229.52 6,91,361 172.17
Exercised during the year 4,07,381 178.56 2,98,052 172.76
Expired during the year - - - -
Outstanding at the end of the year 2,38,37,589 215.17 1,76,26,144 137.24
Exercisable at the end of the period 1,54,90,339 123.86 78,73,214 127.59

(g) Weighted average share price of options exercised during the year is ` 375.04 (Previous year ` 244.21).

240 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

39 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 108, OPERATING

SEGMENTS
A. General Information
(i) Basis of identifying operating segments :
Operating segments are identified as those components of the Company (a) that engage in business activities
to earn revenues and incur expenses (including transactions with any of the Company’s other components);
(b) whose operating results are regularly reviewed by the Board of Directors to make decisions about resource
allocation and performance assessment and (c) for which discrete financial information is available.

The Company has two reportable segments as described under ‘Segment Composition’ below. The nature
of products and services offered by these businesses are different and are managed separately given the
different sets of technology and competency requirements.

(ii) Reportable segments :

An operating segment is classified as reportable segment if reported revenue (including inter-segment
revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all the operating
segments.

(iii) Segment profit :

Performance of a segment is measured based on segment profit (before interest and tax), as included in the
internal management reports that are reviewed by the Company’s Board of Directors.

(iv) Segment composition :

Electric Consumer Durables comprises the product categories of Fans, Pumps and Appliances Lighting
products comprises of Luminaires and Light Sources.

B. Information about reportable segments

` crore
2020-21 Reportable segments
Electric
Lighting
Particulars Consumer Total
Products
Durables
Revenue
External Customers 3,757.13 1,046.38 4,803.51
Inter-segment - - -
Total revenue 3,757.13 1,046.38 4,803.51
Segment profit 739.22 131.73 870.95
Segment profit includes:
Depreciation and amortization expense 7.78 6.52 14.30
Segment assets 912.83 439.56 1,352.39
Segment liabilities 689.63 414.21 1,103.84
Other disclosures
Capital expenditure 17.71 4.56 22.27

Annual Report 2020-21 241

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

` crore
2019-20 Reportable segments
Electric
Lighting
Particulars Consumer Total
Products
Durables
Revenue
External Customers 3,389.04 1,131.22 4,520.26
Inter-segment - - -
Total revenue 3,389.04 1,131.22 4,520.26
Segment profit 673.10 70.59 743.69
Segment profit includes:
Depreciation and amortization expense 4.92 8.39 13.31
Segment assets 721.88 501.12 1,223.00
Segment liabilities 479.17 391.48 870.65
Other disclosures
Capital expenditure 37.36 14.96 52.32

C. Reconciliations of information on reportable segments

` crore
Particulars 2020-21 2019-20
(a) Income
Total income for reportable segments 4,803.51 4,520.26
Elimination of inter-segment revenue - -
Total income (Refer Note 23) 4,803.51 4,520.26

(b) Profit before tax

Total profit before tax for reportable segments 870.95 743.69
Unallocated amounts:
Expense on Employee Stock Option Scheme (25.17) (22.83)
Finance costs (42.91) (40.67)
Other unallocable expenditure net of unallocable Income (79.24) (89.50)
Total profit before tax from operations as reported in Statement
723.63 590.69
of profit and loss

242 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
(c) Assets
Total assets for reportable segments 1,352.39 1,223.00
Other unallocated amounts
Goodwill 779.41 779.41
Other assets 1,426.95 698.74
Deferred tax assets (net) 58.55 50.67
Total assets as reported in Balance sheet 3,617.30 2,751.82

(d) Liabilities
Total liabilities for reportable segments 1,103.84 870.65
Other unallocated amounts
Borrowings 478.79 349.72
Other liabilities 103.24 63.11
Total liabilities as reported in Balance sheet 1,685.87 1,283.48

D. Disaggregation of revenue based on products

Information given above concerning reportable segment-wise revenue are sufficient to meet the required disclosures
under Ind AS 115, Revenue from Contracts with Customers, with respect to disaggregation of revenue.

E. Geographic information
The Company mainly caters to Indian Market, accordingly, secondary information/ geographical segment is not
applicable.

F. Information about major customers

There are no customers having revenue exceeding 10% of total revenues.

Annual Report 2020-21 243

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

40 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 107, FINANCIAL

INSTRUMENTS – DISCLOSURES
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.

` crore
Carrying amount Fair value
As at 31st March, 2021 FVTPL Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Other non-current financial assets
Security deposits 6.15 6.15
In Deposit accounts- bank deposits
with maturity beyond 12 months - -
Others
Cash and cash equivalents 262.42 262.42
Bank balance other than cash and
cash equivalents 341.53 341.53
Current investments 769.73 769.73 769.73 769.73
Trade receivables 491.18 491.18
Other current financial assets 13.15 13.15
769.73 1,114.43 1,884.16 - 769.73 - 769.73
Financial liabilities
Borrowings 478.79 478.79
Trade payables 864.67 864.67
Other current financial liabilities 54.75 54.75
- 1,398.20 1,398.20 - - - -

244 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

` crore
Carrying amount Fair value
As at 31st March, 2020 FVTPL Amortised Total Level 1 Level 2 Level 3 Total
Cost
Financial assets
Other non-current financial assets
Security deposits 6.84 6.84
In Deposit accounts- bank deposits
with maturity beyond 12 months 0.28 0.28
Others 0.70 0.70
Cash and cash equivalents 24.03 24.03
Bank balance other than cash and
cash equivalents 24.09 24.09
Current investments 540.82 540.82 540.82 540.82
Trade receivables 463.46 463.46
Other current financial assets 12.77 12.77
540.82 532.17 1,072.99 - 540.82 - 540.82
Financial liabilities
Borrowings 349.72 349.72
Trade payables 643.57 643.57
Other current financial liabilities 47.14 47.14
- 1,040.43 1,040.43 - - - -

B. Fair value hierarchy

The fair value of financial instruments as referred to in note (A) above have been classified into three
categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority
to unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: Quoted prices for identical instruments in an active market;
• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
• Level 3: Inputs which are not based on observable market data.

Annual Report 2020-21 245

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

C. 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 Significant unobservable Inter-relationship
inputs between significant
unobservable inputs and
fair value measurement
Derivative instruments - The Company has used Not applicable Not applicable
forwards foreign exchange discounted mark to market
contracts of forward contracts using
current forward rates
for remaining tenure of
the forward contract as
provided by respective
banks.
Derivative instruments - Fair value of foreign Not applicable Not applicable
options foreign exchange currency options contract
contracts is provided by bank’s with
whom the derivatives are
entered into.
Investment in mutual funds The fair value of the units Not applicable Not applicable
of mutual fund scheme are
based on net asset value
at the reporting date.
Non current financial Discounted cash flows: Not applicable Not applicable
assets and liabilities The valuation model
measured at amortised considers the present
cost value of expected receipt/
payment discounted using
appropriate discounting
rates.

D. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

▪ Credit risk;
▪ Liquidity risk; and
▪ Market risk

i. Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. Company has constituted a Risk Management Committee (RMC)

246 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

for identification, evaluation and mitigation of operations, strategic and external risks. RMC has the overall
responsibility for monitoring and recovering the Risk Management Plan and associated practices of the
Company.

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 RMC 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 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.

i. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in
the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings. The interest rate profile of the Company’s interest-bearing
financial instruments as reported to the management of the Company is as follows.

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Fixed-rate instruments
Financial assets
Bank deposits 585.88 34.68
Total 585.88 34.68
Financial liabilities
Non-current borrowings 298.79 179.72
Current maturities of non-current borrowings 180.00 170.00
Total 478.79 349.72

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.

Annual Report 2020-21 247

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

ii. 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, investment in mutual funds and cash and cash equivalents.The Company makes provision
on trade receivables based on Expected Credit loss (ECL) method based on provision matrix.

Trade receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The Company has a detailed review mechanism of overdue trade receivables at
various levels in the organisation to ensure proper attention and focus on realisation.

Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is
as follows:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Not past due 399.62 276.56
Past due 1–360 days 77.83 169.24
Past due 361- 720 days 13.73 17.66
more than 720 days - -
491.18 463.46

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company
to determine incurred and expected credit losses. Management believes that the unimpaired amounts
that are past due are still collectible in full, based on historical payment behaviour and extensive analysis
of customer credit risk.

The movement in the allowance for impairment in respect of trade receivables during the year was
as follows:

Particulars ` crore
Balance as at 1 April, 2019
st
19.64
Impairment loss recognised/ (reversed) 27.96
Write-off of bad debts (24.36)
Balance as at 31st March, 2020 23.24
Impairment loss recognised 12.14
Write-off of bad debts (14.14)
Balance as at 31st March, 2021 21.24

248 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

Cash and cash equivalents and bank deposits

The Company held cash and cash equivalents and bank deposits with banks and financial institutions.
The credit worthiness of such banks and financial institutions is evaluated by the management on an
on-going basis and is considered to be good. Investment of surplus funds are made in bank deposits
and other risk free securities.

Derivatives
The derivatives (forwards and options for foreign currency payments) are entered into with banks and
financial institution counterparties with good credit ratings.

Investment in mutual funds

The Company limits its exposure to credit risk by investing only with counterparties that have a good
credit rating. The Company does not expect any losses from non performance by these counter parties.

Other than trade receivables, the Company has no other financial assets that are past due but not
impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due at reasonable price. The Company manages its liquidity risk by ensuring, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company monitors cash flow requirements and aims at optimising its cash return on investments and
to maintain the level of its cash and bank balance and other highly marketable mutual fund investments
at an amount in excess of expected cash outflows on financial liabilities.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
contractual cash flows are gross and undiscounted, and include estimated interest payments.

` crore
Contractual cash flows
More
As at 31st March, 2021 Carrying 1 year or
Total 1-2 years 2-5 years than 5
amount less
years
Non current financial liabilities
Borrowings (including interest) 509.44 561.36 236.15 21.75 303.46 -
Current financial liabilities
Trade payables 864.67 864.67 864.67 - - -
Other financial liabilities 24.10 24.10 24.10 - - -

Annual Report 2020-21 249

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

` crore
Contractual cash flows
More
As at 31st March, 2020 Carrying 1 year or
Total 1-2 years 2-5 years than 5
amount less
years
Non current financial liabilities
Borrowings (including interest) 373.83 397.44 201.33 196.11 - -
Current financial liabilities
Trade payables 643.57 643.57 643.57 - - -
Other financial liabilities 23.02 23.02 23.02 - - -

iv. Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and
equity prices – will affect the Company’s income or the value of its holdings of financial instruments.
Market risk is attributable to all market risk sensitive financial instruments including foreign currency
receivables and payables. The Company is exposed to market risk primarily related to foreign exchange
rate risk, interest rate risk and the market value of investments. Thus, Company’s exposure to market
risk is a function of investing and revenue generating and operating activities in foreign currency. The
objective of market risk management is to avoid excessive exposure in our foreign currency revenues
and costs.

v. Currency risk
The Company is exposed to currency risk on account of its receivable and payables in foreign currency.
The functional currency of the Company is Indian Rupee. The Company uses forward foreign exchange
contracts and options foreign exchange contracts to hedge its currency risk, mostly with a maturity of
less than one year from the reporting date.

Company do not use derivative financial instruments for trading or speculative purposes.

Following is the derivative financial instruments to hedge the foreign exchange rate risk:

Amounts
Cross
Category Instrument Currency ($ in Buy/Sell Period
Currency
million)
Hedges of recognised liabilities Option USD INR 6.28 Buy As at
Contract 31st March,
2021
Hedges of recognised liabilities Forward USD INR 0.25 Buy As at
Contract 31st March,
2021

250 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

Exposure to currency risk

The currency profile of financial assets and financial liabilities denominated in USD are as below:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Financial assets
Trade receivables 6.61 20.01
6.61 20.01
Financial liabilities
Trade payables 55.73 70.31
55.73 70.31
Net foreign currency exposure (49.12) (50.30)

Sensitivity analysis
A reasonably possible strengthening/ (weakening) of the Indian Rupee against foreign currencies at
reporting date would have affected the measurement of financial instruments denominated in foreign
currencies 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.

Profit or loss
Effect in ` crore
Movement Strengthening Weakening
As at 31st March, 2021
USD 5% (2.46) 2.46
(2.46) 2.46

Profit or loss
Effect in ` crore
Movement Strengthening Weakening
As at 31st March, 2020
USD 5% (2.51) 2.51
(2.51) 2.51

41 CAPITAL MANAGEMENT
Equity share capital and other equity are considered for the purpose of Company’s capital management. The
Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns
to shareholders. The capital structure of the Company is based on management’s judgement of its strategic
and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.
The management and the Board of Directors monitors the return on capital as well as the level of dividends to
shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.

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.

Annual Report 2020-21 251

Notes to the Consolidated Financial Statements
for the year ended 31st March, 2021

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘total equity’. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash
equivalents, other bank balances and current investments. Total equity comprises all components of equity.

The Company’s adjusted net debt-to-equity ratio at 31st March, 2021 was as follows:

` crore
As at As at
Particulars
31st March, 2021 31st March, 2020
Total borrowings (including current portion of long-term debts) 478.79 349.72
Less : Cash and cash equivalents 262.42 24.03
Less : Other bank balances 341.53 24.09
Less : Current investments 769.73 540.82
Adjusted net debt (894.89) (239.22)
Total equity 1,931.43 1,468.34
Adjusted net debt to adjusted equity ratio (0.46) (0.16)

42 Additional Information pursuant to Schedule III to the Companies Act, 2013 for the year ended
31st March, 2021:

Net Assets, i.e., total Share in other Share in total

Share in profit or
assets minus total comprehensive comprehensive
(loss)
liabilities income income
Name of Entity
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (` consolidated (` consolidated (` consolidated (`
net assets crore) net assets crore) net assets crore) net assets crore)
Parent Company
Crompton Greaves
Consumer
Electricals Limited 98.62% 1,904.78 98.07% 604.74 100.00% 2.19 98.08% 606.93
Indian
Subsidiaries
Pinnacles Lighting
Project Private
Limited 0.70% 13.51 1.03% 6.37 0.00% - 1.03% 6.37
Nexustar Lighting
Project Private
Limited 0.68% 13.14 0.90% 5.54 0.00% - 0.90% 5.54

252 Crompton Greaves Consumer Electricals Limited

 Corporate Overview Statutory Reports Financial Statements

Notes to the Consolidated Financial Statements

for the year ended 31st March, 2021

43 The List of subsidiaries included in Consolidated Financial Statements are as under:

Principal Proportion of direct Proportion of direct

Sr.
Name of the subsidiary companies place of ownership as on ownership as on
no.
business 31st March, 2021 31st March, 2020
1 Pinnacles Lighting Project Private Limited India 100% 100%
2 Nexustar Lighting Project Private Limited India 100% 100%

44 Based on assessment order received during the year, the Company has written-back an amount of ` 76.68 crore
(Previous year ` 57.38 crore) in respect of earlier years and the same is netted-off from current tax expense for the
year ended 31st March, 2021.

45 COVID-19 has caused disruptions to businesses across India. The management has considered subsequent
events, internal and external information in finalising various financial estimates as at the date of approval of
these financial results and have not identified any material impact on the carrying value of assets, liabilities or
provisions. The management will continue to closely monitor any changes to future economic conditions and
assess its impact on the operations.

46 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The Company will assess the
impact of the Code when it comes into effect and will record any related impact in the period when the Code
becomes effective.

47 Amount shown as ` 0.00 represents amount below ` 50,000 (Rupees Fifty Thousand).

48 Figures for the previous year have been regrouped wherever necessary.

Signatures to Notes 1 to 48
SHARP & TANNAN H. M. Nerurkar Shantanu Khosla D. Sundaram
Chartered Accountants Chairman Managing Director Director
Firm’s Registration No. 109982W DIN: 00265887 DIN: 00059877 DIN: 00016304
by the hand of

Edwin P. Augustine Mathew Job Sandeep Batra Pragya Kaul

Partner Executive Director and Chief Financial Officer Company Secretary
Membership No. 043385 Chief Executive Officer Membership No. A17167
Mumbai, 21st May, 2021 DIN: 02922413 Mumbai, 21st May, 2021

Annual Report 2020-21 253

Notes
Notes
Notes
Crompton Greaves Consumer Electricals Limited
Tower 3, 1st Floor, East Wing,
Equinox Business Park, LBS Marg,
Kurla (West), Mumbai - 400 070
www.crompton.co.in
CIN: L31900MH2015PLC262254