Provisions
The Company recognizes a provision when there is a present legal or constructive obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as an interest expense.
Contingent Liability
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.
(m) Revenue from Operations
i. Sale of Goods
The Company's revenue contracts represent a single performance obligation to sell its products to trade customers. Sales are recorded at the time control of the products is transferred to trade customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of trade customers to direct the use of and obtain the benefit from our products. In evaluating the timing of the transfer of control of products to trade customers, the Company considers transfer of significant risks and rewards of products and the probability of flowing of future economic benefit to the Entity as per the terms of the Contract which usually coincide with the delivery of the goods.
Revenue is measured on the basis of contracted price and reduced by variable consideration. Variable consideration includes sales returns, trade discounts, volume based incentives, and cost of promotional programs, indirect taxes as may be applicable.
The Company provides volume based incentives to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Incentives are offset against amounts payable by the customer. To estimate & recognize a liability for the incentives, the Company applies methods which best predicts the amount of incentive and is primarily driven by the number of volume thresholds contained in the contract. The volume incentive is estimated at contract inception and recognized when it is highly probable that significant revenue reversal will not occur.
Company's contracts with trade customers do not have significant financing components or non-cash consideration and the Company does not have
unbilled revenue or significant amounts of prepayments from customers.
The company pays sales commission to its employees for contract that they obtain for sales of goods and immediately expensed out sales commissions (included under employee benefits).
Contract Balances
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Company performs its obligation to transfer goods or services under the contract.
ii. Service Income
Service Income is recognized on cost plus basis as per the terms of the contract with customers, as and when the service is performed.
iii. Interest Income
Interest income from debt instruments is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.
iv. Rental Income
Rental income from operating leases where the Company is a lessor is recognized in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
v. Government Grant
Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Ind AS 20 permits the grant to be recognized in profit or loss. The Company has chosen to present grants related to an expense item as other operating income in the statement of profit and loss.
(n) Employee Benefits
i. Short Term Employee Benefits
Liabilities for salaries, wages and performance incentives including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefits obligations in the Balance Sheet.
ii. Long Term Employee Benefits
• Defined Contribution Plans
Provident Fund, Superannuation Fund and Employee's State Insurance:
The Company has Defined Contribution Plans for its employees such as Provident Fund, Superannuation Fund, Employee's State Insurance etc. and contribution to these plans are charged to the Statement of Profit and Loss as incurred, as the Company has no further obligation beyond making the contributions.
• Defined Benefit Plans
Gratuity:
The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of
employment. The Company's liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur directly in other comprehensive income. They are included in retained earnings in the Statement of changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in the Statement of profit and loss as past service cost. Remeasurements are not reclassified to Profit or Loss in subsequent periods.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Provident Fund:
In respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable by the trust to the beneficiaries every year is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investment of the trust and interest as per the notified rate. The Company's liability is actuarially determined (using the Projected Unit Credit Method) at the end of the year. Measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur directly in other comprehensive income. They are included in retained earnings in the Statement of changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in the Statement of profit and loss as past service cost. Remeasurements are not reclassified to Profit or Loss in subsequent periods.
Compensated Absences:
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year and are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company's liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the Statement of Profit and Loss in the year in which they arise.
Voluntary Retirement Scheme:
Expenditure on voluntary retirement scheme is charged to the Statement of Profit and Loss in the year in which incurred.
Share Based Payments
The Company does not provide any equity- based compensation to its employees. However, the parent Company, Colgate Palmolive Company, U.S.A. ("the grantor") maintains equity incentive plans that provide for the grant of stock-based awards to its executive directors and certain categories of officers and employees. The 2009 Executive Incentive Compensation Plan and 2013 Incentive Compensation Plan ("Incentive Plan") provides for the grant of non-qualified and incentive stock options, as well as restricted stock units which are together referred to as employee stock options. Exercise prices in the case of non¬ qualified and incentive stock options are not less than the fair value of the underlying common stock of the grantor on the date of grant.
A stock option gives an employee, the right to purchase shares of Colgate Palmolive Company common stock at a fixed price for a specific period of time. Stock options generally have a term of six years and vest over three years.
A restricted stock unit (RSU) provides an employee with a share of Colgate Palmolive Company common stock upon vesting. Restricted stock units vest in annual installments generally over a period of three years. Dividends will accrue with each restricted stock unit award granted subsequent to grant date.
Employee Stock Options (ESOPs') issued by the parent entity are accounted for as equity-settled as the Company has no obligation to settle the share-based payment transaction and also the shares are of parent Company.
Company recognizes the expense over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied, as determined on the grant date, based on the fair value of the options/RSUs. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in the Statement of Profit and Loss, with a corresponding adjustment to equity.
In case where there is a clear link between the recharge from the parent company and the expense, Company accounts for the recharge as capital distribution even if the amount of recharge is more than the expense recognized over the vesting period (as the recharge is based on the intrinsic value).
In case where the employee has not served the Company during the vesting period and for which they get the debit note from parent, the cost is debited to management recharge expense.
Further, where the management recharge is not expected from the parent entity as the employee has been relocated to another group company i.e. the employee is not expected to render future services to the Company at the time of exercise of option, the Company transfers the proportionate amount of share options outstanding account related to such employees to Retained Earnings, after taking into consideration the probability of employees re-locating back to the Company.
(o) Income Tax
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with prevailing income tax law. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
The Company evaluates whether it has any uncertain tax positions which requires adjustments to provision for current tax. The Company has ongoing disputes with Income Tax Authorities on various matters. In respect of certain allowance/deductions, it is probable that such positions will not be accepted by Tax authorities and hence the same has been considered and adequately provided for while calculating current tax provision of the respective years. In respect of certain allowances/ deductions taken by the Company, it is probable that such disputes will be accepted by Tax authorities and hence the same have been considered and disclosed as a part of Contingent Liability.
• Current Tax
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.
• Deferred Tax
Deferred tax is recognized for all the deductible temporary differences by using the liability method, only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company reassesses unrecognized deferred tax assets, if any.
Deferred tax relating to items recognized outside
profit or loss is recognized either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.
(p) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM"). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Financial Officer of the Company. The Company has identified 'Personal Care (including Oral Care)' as its only primary reportable segment, which primarily includes products such as Soaps, Cosmetics and Toilet Preparations.
(q) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
(r) Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
(s) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax.
(t) Earnings Per Share
i. Basic Earnings Per Share
Basic earnings per share are calculated by dividing:
• the profit attributable to owners of the Company
• By the weighted average number of equity shares outstanding during the Financial Year.
ii. Diluted Earnings Per Share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:
• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
2. Critical Accounting Estimates and Judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes.
The areas involving critical estimates or judgments are:
- Estimation of defined benefit obligation (Refer Note 1B(n) and Note 28)
- Estimation of Useful life of Property, plant and equipment and intangibles (Refer Note 1B(c) and Note 3)
- Estimation of taxes (Refer Note 1B(o), Note 19 and 31)
- Estimation of impairment of trade receivables (Refer Note 1B(i) and Note 8)
- Estimation of provision and contingent liabilities (Refer Note 1B(l)(iv), Note 24 and 32)
- Estimation of Share based payments to employees (Refer Note 1B(n) and Note 38)
- Estimation of variable consideration in respect of revenue recognition (Refer Note 1B(m) and Note 25)
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
3. Standards Notified but not yet Effective
There are no standards that are notified and not yet effective as on the date.
(i) Buildings include : (a) Research Centre at Powai, Mumbai, (b) Factory Building at Baddi, (c) Factory Buildings at Goa, (d) Factory Buildings at Sanand and (e) Factory Building at Sricity.
(ii) Refer to Note 34 for disclosures of capital commitments for the acquisition of property, plant and equipment.
(iii) Buildings include investment property with net carrying value of H 164 Lakhs (March 31, 2024 : H 176 Lakhs) and fair value of H 3,544 Lakhs (March 31, 2024: H 3,434 Lakhs). Fair value is determined based on an annual evaluation performed by an accredited external independent valuer using the sales comparison method of valuation under market approach in which due weightages have been given to factors such as right to sell/transfer the property, demand and prospective buyers for such type of commercial offices etc. The significant unobservable inputs considered includes total of Weighted reconciliation is H 22,500/- per square feet (March 31, 2024: H 21,800/-). The rental income and depreciation expense for the year ended March 31, 2025 are H 266 Lakhs (March 31, 2024 : H 259 Lakhs) and H 13 lakhs (March 31, 2024 : H 13 Lakhs) respectively. (Refer Note 16).
The effective interest rate for lease liabilities is 7.40% p.a. to 8.40% p.a., with maturity between 2025-2033.
The Company had total cash outflows for leases of H 1,750 lakhs for the year ended March 31, 2025 and H 1,899 lakhs for the year ended March 2024.
The maturity analysis of lease liabilities are disclosed in Note 40.
As a Lessor
The Company has given office premise space under non-cancellable operating lease for a period of 1 year ended May 31, 2024. The rental income from the asset given on lease of H 266 Lakhs (March 31, 2024 : H 259 Lakhs) has been disclosed as "Lease Rentals" under Other Income in Note 26 to the Statement of Profit and Loss.
Description of significant operating lease arrangements in respect of premises:
- The Company has taken refundable interest free security deposit under the lease agreements.
- Agreement contain provision for renewal at the option of either party.
- Agreement provide for restriction on sub lease.
Note 25: Revenue from Operations (contd.)
Performance Obligation
The Company’s revenue contracts represent a single performance obligation to sell its products to trade customers. Sales are recorded at contracted price at the time control of the products is transferred to trade customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of trade customers to direct the use of and obtain the benefit from our products. In evaluating the timing of the transfer of control of products to trade customers, the Company considers transfer of significant risks and rewards of products and the probability of flowing of future economic benefit to the entity as per the terms of the Contract which usually co-incide with the delivery of the goods. The performance obligation for service Income is satisfied as and when the service is performed.
The payment terms include advance payment and credit given to certain customers.
The nature of goods includes personal care (including oral care) and Research and Development service income.
Variable Consideration
Variable consideration includes sales returns, trade discounts, volume based incentives, and cost of promotional programs, indirect taxes as may be applicable.
B) Balance Sheet Amounts
i) Balance sheet amounts- Gratuity
The Company provides for gratuity for employees as per the Company policy. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of Gratuity is payable on retirement/ termination of the employee's based on last drawn basic salary per month multiplied for the number of years of service. The Company has established ‘Colgate-Palmolive India Gratuity Fund for Workmen’ and ‘Colgate-Palmolive India Gratuity Fund for Non-Workmen’ to which the Company makes contribution.
Note 28: Employee Benefits Expense (contd.)
ii) Balance Sheet Amounts- Provident Fund
The Company has established ‘Colgate-Palmolive (India) Limited Provident Fund’ in respect of certain employees to which both the employee and the employer make contribution. Such contribution to the provident fund for all employees, are charged to the Statement of Profit and Loss. In case of any liability arising due to shortfall between the return from its investments and the guaranteed specified interest rate, the same is provided for by the Company. The actuary has provided an actuarial valuation and the interest shortfall liability if any has been provided in the books of accounts after considering the assets available with the Company's Provident Fund Trust. The guaranteed rate of return (p.a) is 8.25% ( March 31, 2024 - 8.25%).
D) Projected Plan Cash flow:
The expected contribution payable to the Gratuity plan for the next year is H 1,530 Lakhs. The expected contribution payable to the Provident Fund plan for the next year is H 1,533 lakhs.
The weighted average duration to the payment of these cash flows for Gratuity is 10.89 years (March 31, 2024: 10.88 years). The weighted average duration to the payment is for Provident Fund plan is 12.37 years (March 31, 2024 : 12.42 years)
Note 32: Contingent Liabilities (contd.)
refunds based on these ITAT orders for such years, along with interest on the income tax refund amounting to H 6,478 lakhs, which has been recognized as income in the current year. Further, the income tax department has preferred appeal with the high court for certain years which are yet to be admitted in the High Court.
Note 33: Demand Notices in Relation to Leased Property
As at March 31, 2025, the Company has outstanding demand from Bombay Port Trust (BPT) for H 13,914 Lakhs due to increased rentals on the three leased properties (Leased Plots), applied retrospectively from October 1, 2012 till November 30, 2024. The Company filed a writ petition against BPT to request acceptance of the surrender of Leased Plots. BPT accepted the surrender for two of the plots, however did not accept the surrender of one plot which has been brought to the attention of the Hon'ble High Court. The surrender of the third plot and demand notices issued in respect of the Leased Plots until year ended March 31, 2025 are currently part of ongoing litigation before the Hon'ble Mumbai High Court.
Note 35: Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Financial Officer of the Company. The Company operates only in one Business Segment i.e. ‘Personal Care (including Oral Care)' which primarily includes products such as Soaps, Cosmetics and Toilet Preparations and the activities incidental thereto within India, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments". The performance of the Company is mainly driven by sales made locally and hence, no separate geographical segment is identified.
Terms and conditions:
Transactions relating to dividends and bonus shares were on the same terms and conditions that apply to other shareholders.
Goods and Services procured or provided from/ to related parties are generally priced at arm’s length. Other reimbursement of expenses to/ from related parties is on Cost basis.
All other transactions were made on normal commercial terms and conditions and at market rates.
All outstanding balances are unsecured and are repayable/ receivable in cash.
Note 38: Share Based Payments
(a) Employee Option Plan
The Company does not provide any equity-based compensation to its employees. However, the parent company, Colgate-Palmolive Company, U.S.A. ("the grantor") maintains equity incentive plans that provide for the grant of stock- based awards to its executive directors and certain categories of officers and employees. The Parent's Incentive Plan provides for the grant of non-qualified and incentive stock options, as well as restricted stock units. Exercise prices in the case of non-qualified and incentive stock options are not less than the fair value of the underlying common stock on the date of grant.
A stock option gives an employee, the right to purchase shares of Colgate-Palmolive Company common stock at a fixed price for a specific period of time. Stock options generally have a term of six years from the date of grant and vest over a period of three years.
A restricted stock unit provides an employee with a share of Colgate-Palmolive Company common stock upon vesting. Restricted stock units vest generally over a period of three years. Dividends will accrue with each restricted stock unit award granted subsequent to the grant date.
Fair Value of options granted
The fair value at the grant date of options granted during the year ended March 31, 2025 was H 1,896 per option (March 31, 2024 : H 1,225 per option). The fair value at grant date is determined using the Black-Scholes Model which takes into account the exercise price, expected volatility, option's life, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
Fair Value of options granted (contd.)
The risk free interest rates are determined based on the zero-coupon sovereign bond yields with maturity equal to the expected term of the option. The expected volatility was determined based on the volatility of the equity share for the period of one year prior to issue of the option. Volatility calculation is based on historical stock prices using standard deviation of daily change in stock price. The historical period is taken into account to match the expected life of the option. Dividend yield has been calculated taking into account expected rate of dividend on equity share price as on grant date.
Note 39: Fair Value Measurements
The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument: Level 1 : Quoted prices for identical instruments in 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.
(ii) Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3
Current financial asset and current financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature. Non current financial assets and non current financial liabilities have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows.
Note 40: Financial Risk Management
Inherent to the nature of the Company's business are a variety of financial risks, namely liquidity risk, market risk and credit risk. Developing policies and processes to assess, monitor, manage and address these risks is the responsibility of the Company's Management. The Risk Management Committee oversees this risk management framework in the Company and intervenes as necessary to ensure there exists an appropriate level of safeguards against the key risks. Updates on compliance, exceptions and mitigating action are placed before the Audit Committee periodically. Risk management
policies and systems are reviewed regularly to reflect changes like major changes in ERP systems or go to market model, changes in organization structure, events denoting material change in the risk environment, etc.
The Company's Management works closely with its Treasury department and Internal Audit department to ensure there are appropriate policies and procedures governing the operations of the Company with a view to providing assurance that there is visibility into financial risks and that the business is being run in conformity with the stated risk objectives. Periodic reviews with concerned stakeholders provides an insight into risks to the business associated with currency movements, credit risks, commodity price fluctuations, etc. and necessary deliberations are undertaken to ensure there is an appropriate response to the developments.
A MANAGEMENT OF LIQUIDITY RISK
The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure and dividend policies. The Company has a overdraft facility with banks to support any temporary funding requirements. The Company is cognizant of reputational risks that are associated with the liquidity risk and the risk is factored into the overall business strategy.
The Company's treasury department regularly monitors the rolling forecasts to ensure it has sufficient cash on an on¬ going basis to meet operational needs. Any short term surplus cash generated by the operating entities, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
C MANAGEMENT OF CREDIT RISK
Credit risk is the risk of financial loss to the Company if a customer or other counter-party fails to meet its contractual obligations.
Trade Receivables
Trade receivables are subject to credit limits, controls and approval processes. A majority of customers pay prior to shipment, thereby reducing exposure to trade receivables significantly. Due to a large customer base, the Company is not exposed to material concentration of credit risk. Basis the historical experience supported by the level of default, the credit risk in case of trade receivable is low and so trade receivables are considered to be a single class of financial assets. (Refer Accounting Policy 1 B (i) on trade receivables.)
The gross carrying amount of trade receivables is H 23,474 Lakhs as at March 31, 2025 and H 17,335 Lakhs as at March 31, 2024.
Other Financial Assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in debt instruments. The Company concentrates its major investment activities with a limited number of counter-parties which have secure credit ratings, to reduce this risk. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Company's Treasury department.
Note 41: Capital Management
The Company's objective in managing its capital is to safeguard its ability to continue as a going concern and to optimise returns to our shareholders. The Company considers the following components of its Balance Sheet to be managed capital:
1) Share Capital, 2) Securities Premium and 3) Other Reserves comprising of General Reserve and Retained Earnings.
The Company's capital structure is based on the Managements assessment of the balances of key elements to ensure strategic decisions and day to day activities. The capital structure of the Company is managed with a view of the overall macro economic conditions and the risk characteristics of the underlying assets.
The Company’s policy is to maintain a strong capital structure with a focus to mitigate all existing and potential risks to the Company, maintain shareholder, vendor and market confidence and sustain continuous growth and development of the Company.
The Company's focus is on keeping a strong total equity base to ensure independence, security, as well as high financial flexibility without impacting the risk profile of the Company.
In order, to maintain or adjust the capital structure, the Company will take appropriate steps as may be necessary. The Company does not have any debt or financial covenants.
Note 45: Other Statutory Information
(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) The company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,1961).
(iii) The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.
(iv) The Company has not traded, nor invested in any Crypto currency or virtual currency during the period ended March 31, 2025.
(v) During the period, the Company has not advanced or given any loan or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that Intermediary shall:
(a) 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
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) During the period, the Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that Company shall:
(a) 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
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has maintained daily back of up of books of accounts on servers physically located in India.
(viii) 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 no instance of audit trail feature being tampered with was noted in respect of the software. Further, the Company has preserved audit trail for prior years to the extent it was enabled.
Note 46: Subsequent to year end, the Company has declared a Second Interim dividend of H 27/- per share aggregating to H 73,436 Lakhs on May 21, 2025 for FY 2024-25 which will be paid on and from June 16, 2025.
Note 47: Exceptional Item in the previous year ended March 31, 2024 includes severance and related expenses of H 1,950 Lakhs with respect to certain organisation structure changes.
Signature to Notes 1 to 47 are an integral part of these financial statements
As per our report of even date. For and on behalf of the Board of Directors of Colgate-Palmolive (India) Limited
For S R B C & CO LLP M. S. Jacob Prabha Narasimhan
Chartered Accountants Whole-time Director & Managing Director &
Firm Registration No. 324982E/E300003 Chief Financial Officer Chief Executive Officer
(DIN : 07645510) (DIN : 08822860)
per Pritesh Maheshwari Surender Sharma
Partner Whole-time Director - Legal
Membership Number - 118746 & Company Secretary
(F-8913)
(DIN : 02731373)
Place : Mumbai Place : Mumbai
Date : May 21, 2025 Date : May 21, 2025
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