godfrey phillips submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, disclosing significant progress in environmental metrics including a 22% reduction in water intensity per unit of cigarette production and achieving 112.9% water replenishment. The filing, dated July 31, 2026, was signed by Pumit Kumar Chellaramani, Company Secretary and Compliance Officer, and submitted to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report highlights that renewable electricity now accounts for 33% of total consumption across manufacturing sites, up from previous levels, while energy consumption per unit of cigarettes produced fell by approximately 3% compared to FY 2024–25.

The assurance engagement for the identified sustainability information was conducted by S.R. Batliboi & Co. LLP, Chartered Accountants, who issued a reasonable assurance opinion on June 30, 2026. Partner Naman Agarwal confirmed that the identified sustainability information, covering greenhouse gas emissions, water footprint, energy footprint, circularity, and employee wellbeing, is prepared in all material respects in accordance with the specified criteria. The reporting boundary includes standalone financial disclosures and social performance data for the entity and its wholly owned subsidiary, International Tobacco Co. Ltd., while environmental disclosures cover the cigarette and tobacco business of the company and its subsidiary.

Environmental Performance Highlights

The company achieved zero liquid discharge at its Leaf factory in Ongole and attained Zero Waste to Landfill status at one of its manufacturing units, Guldhar, which is awaiting certification. Water conservation efforts included the construction of 13 additional check dams, bringing the total to 57, facilitating potential water storage of over 3 lakh kilolitres. Additionally, three rainwater harvesting structures were constructed at one of the factories. The company also installed 20 new community RO water plants, taking the total number of community RO water plants to 83.

Social and Governance Initiatives

Under its "People First" philosophy, the company maintained a workforce of 1,095 permanent employees and 26 permanent workers. Women represent 6.2% of permanent employees and 30% of the Board of Directors. Learning man-hours increased by 95% over the FY 2022–23 baseline, significantly exceeding the target. The company retained its ISO 27001 certification for information security and continues to adhere to ISO 26000 standards. No complaints were received regarding working conditions, occupational health and safety, or human rights violations during the year. The Board’s ESG Committee, chaired by Sharad Aggarwal, Whole-Time Director & Functional Chief Executive Officer, reviewed key areas including stakeholder engagement outcomes and the Double Materiality Assessment.

What the Numbers Show

The divergence between the company’s water replenishment achievement (112.9%) and its stated target (30%) indicates a substantial over-performance in water stewardship initiatives during FY26. This surplus, driven by infrastructure investments such as check dams and rainwater harvesting, suggests that the company’s current mitigation strategies are exceeding regulatory and internal expectations, potentially building significant resilience against water stress risks in its operational regions.

Godfrey Phillips India Limited has outlined the Tax Deduction at Source (TDS) framework for its proposed final dividend of ₹33 per equity share for the financial year ended March 31, 2026. The Board of Directors recommended this dividend on May 15, 2026, subject to shareholder approval at the Annual General Meeting scheduled for August 24, 2026. The record date for dividend entitlement is set for August 11, 2026. This communication is critical for shareholders seeking to optimize their net dividend proceeds by availing applicable tax exemptions or lower withholding rates under the Income-tax Act, 2025.

The company will deduct tax based on shareholder residency and documentation status. For resident individual shareholders, no TDS applies if the aggregate dividend distributed during the financial year does not exceed ₹10,000. Other resident shareholders face a standard TDS rate of 10%, unless they submit Form 121 to claim exemption or lower deduction rates. Failure to provide a valid Permanent Account Number (PAN), or failure to link PAN with Aadhaar as mandated under Section 262 of the Act, results in a higher TDS rate of 20%. Specific entities such as insurance companies, mutual funds, Alternative Investment Funds (AIFs), and New Pension System Trusts can claim exemptions by submitting self-declarations along with self-attested registration certificates and PAN cards.

Non-resident shareholders, including Foreign Portfolio Investors (FPIs), are subject to a withholding tax rate of 20%, plus applicable surcharge and cess, under Section 393(2) of the Act. However, they may opt for beneficial rates under the Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence. To avail DTAA benefits, non-residents must submit a self-attested PAN card, a valid Tax Residency Certificate (TRC) for FY 2026-27, and electronically filed Form 41 pursuant to Notification no. 03/2022 dated July 16, 2022. Shareholders from Singapore must additionally furnish evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under the India-Singapore DTAA.

Shareholders must upload requisite documents to MUFG Intime India Private Limited, the Registrar and Transfer Agent, by August 10, 2026. The submission portal is available at the company’s designated link. Documents received via post, courier, or registered email will also be accepted. In cases of joint holdings, the first-named shareholder in the Register of Members is responsible for furnishing the necessary documents. The company emphasized that it will not entertain requests for revision of TDS returns after the fact, and any excess tax deducted due to missing documents can only be reclaimed by filing an income tax return, with no liability resting on the company.

Dividend TDS Rates Summary

Compliance and KYC Requirements

Pursuant to SEBI Master Circular No. HO/38/13/(4)2026-MIRSD-POD/I/4298/2026 dated February 06, 2026, shareholders holding securities in physical mode must ensure their folios are KYC compliant. This includes updating PAN, address with PIN code, mobile number, bank account details, specimen signature, and nomination details. Effective April 1, 2024, dividends for physical shareholders are paid only through electronic mode, contingent upon KYC compliance. Shareholders holding shares in dematerialized mode are advised to update their tax residential status, PAN, and contact details with their depository participants. The company noted that any income tax demand arising from misrepresentation or omission of information by shareholders will be the sole responsibility of the shareholder, who must indemnify the company against such liabilities.