We have audited the financial statements of Colgate-
Palmolive (India) Limited (“the Company”), which comprise
the Balance sheet as at March 31, 2025, the Statement of
Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the
Statement of Changes in Equity for the year then ended,
and notes to the financial statements, including a
summary of material accounting policies and other
explanatory information.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
financial statements give the information required by the
Companies Act, 2013, as amended (“the Act”) in the
manner so required and give a true and fair view in
conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as
at March 31, 2025, its profit including other comprehensive
income, its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in
accordance with the Standards on Auditing (SAs), as specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Financial Statements’
section of our report. We are independent of the Company in
accordance with the ‘Code of Ethics’ issued by the Institute of
Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
financial statements for the Financial Year ended March 31,
2025. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our
description of how our audit addressed the matter is
provided in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s
responsibilities for the audit of the financial statements
section of our report, including in relation to these matters.
Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the
risks of material misstatement of the financial statements.
The results of our audit procedures, including the
procedures performed to address the matters below,
provide the basis for our audit opinion on the
accompanying financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition (as described in Note 25 of the financial statements)
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Revenue from the sale of goods is measured
net off discounts and rebates that are given to
the customers (i.e., to the Wholesale traders
and Retail traders) as a part of sales promotion,
comprising of primary and secondary
schemes.
Of the total discounts and rebates passed on
to the customers, certain discounts and
rebates are passed on to the customers on the
basis of secondary sales made by customers
i.e., secondary schemes.
Significant judgement is required in estimating
accruals relating to secondary schemes
recognized, based on sales made during the
year.
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Our audit procedures included the following:
• Assessing the appropriateness of the Company's revenue
recognition accounting policies including those relating to
discounts and rebates for primary and secondary sales.
• Obtained an understanding, assessed and tested the operating
effectiveness of internal control relating to the identification,
recognition and measurement of discounts and rebates for
secondary schemes.
• Tested on sample basis, the underlying documentation and
assumptions, for discount and rebate provisions accrued during
the year in relation to secondary sales.
• Tested on sample basis, the subsequent claims accounted by
the Company, to assess the adequacy and appropriateness of
accruals outstanding as at year end.
• Performed an analysis between historical accrual and actual
expenses incurred for the previous periods.
• Obtained reasons from management to ascertain reasonableness
in relation to ageing of outstanding accruals and verified
subsequent settlement of provisions
• We assessed the adequacy of the disclosures in respect of
revenue to be disclosed as per Ind AS 115.
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Contingent liabilities / provisions in relation to tax Litigations (as described in Note 24(A), and 31(d) and 31(e) and 32
of the Financial statements)
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The Company has received various demand
orders and notices under various tax laws
which the Company is contesting. In cases
where the outflow of resources embodying
economic benefits is probable, the Company
has made provision and in cases where
outflow of resources embodying economic
benefits is possible, then such items are
disclosed as contingent liabilities.
Significant judgements and estimates are
required to assess impact of these litigations
on the financial position, results of operations
and cash flows.
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Our audit procedures included the following:
• Obtained an understanding, assessed and tested the internal
control environment relating to the identification, recognition
and measurement of provisions for disputes and disclosures of
contingent liabilities in relation to tax litigations.
• Obtained details of completed tax assessments and demands
issued by tax authorities, from the management.
• Read the orders/notices received from tax authorities and held
discussion with management to understand management's
assessment of the quantification and likelihood of significant
exposures and the provision required for specific cases.
• We engaged our tax specialists to evaluate the current status of
tax assessments and management's position in relation to on¬
going disputes with regard to likelihood assessment of
economic outflow by the management.
• Analysed the management's estimates related to the recognized
provisions for disputes and disclosures of contingent liabilities
in relation to tax litigations and uncertain tax positions in the
financial statements.
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Other Information
The Company’s Board of Directors is responsible for the
other information. The other information comprises the
information included in the Annual report, but does not
include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the
other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing
so, consider whether such other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Management and Those
Charged With Governance for the Financial
Statements
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these financial statements that give a true
and fair view of the financial position, financial performance
including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including
the Indian Accounting Standards (Ind AS) specified under
section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and the design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is
responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing
the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to financial statements
in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or
conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements for the
Financial Year ended March 31, 2025 and are therefore the
key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of the
Act, we give in the “Annexure I” a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report to
the extent applicable, that:
(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books and
daily back up of such books of accounts have been
maintained on servers physically located in India;
(c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid financial statements
comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as
amended;
(e) On the basis of the written representations received
from the directors as on March 31, 2025 taken on
record by the Board of Directors, none of the
directors is disqualified as on March 31, 2025 from
being appointed as a director in terms of Section
164 (2) of the Act;
(f) With respect to the adequacy of the internal
financial controls with reference to these financial
statements and the operating effectiveness of such
controls, refer to our separate Report in “Annexure
II” to this report;
(g) In our opinion, the managerial remuneration for
the year ended March 31, 2025 has been paid /
provided by the Company to its directors in
accordance with the provisions of section 197 read
with Schedule V to the Act.
(h) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as
amended in our opinion and to the best of our
information and according to the explanations
given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in
its financial statements - Refer Note 32 and 33
to the financial statements;
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company;
iv. a) The management has represented that, to
the best of its knowledge and belief no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or
kind of funds) by the Company to or in
any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the
understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities
identified in any manner whatsoever by or
on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries;
b) The management has represented that, to
the best of its knowledge and belief no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with
the understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or
invest in other persons or entities identified
in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries; and
c) Based on such audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (a) and (b) contain any material
misstatement.
v. The interim dividend declared and paid by the
Company during the year and until the date of
this audit report is in accordance with section
123 of the Act.
vi. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit
log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software. Further, during the
course of our audit we did not come across any
instance of audit trail feature being tampered.
Additionally, the audit trail of prior years has
been preserved by the Company as per the
statutory requirements for record retention to
the extent it was enabled and recorded in the
respective years.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Pritesh Maheshwari
Partner
Membership Number: 118746
UDIN: 25118746BMOLEA3221
Place of Signature: Mumbai
Date: May 21, 2025
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