Home  »  Company  »  Colgate Palm.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Colgate-Palmolive (India) Ltd.

Mar 31, 2017

IA. Background:

Colgate-Palmolive (India) Limited is a subsidiary of Colgate-Palmolive, USA and a listed Company in India. The Company was incorporated on September 23, 1937. The Company is engaged in manufacturing/trading of toothpaste, tooth powder, toothbrush, mouth wash and personal care products.

These financial statements for the year ended March 31, 2017 were approved by the Board of Directors on May 15, 2017.

IB. Significant Accounting Policies:

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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 together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

- Estimation of defined benefit obligation (Note 29)

- Estimation of Useful life of Property, plant and equipment and intangibles (Note 3)

- Estimation of taxes (Note 20 and 31)

- Estimation of impairment of trade receivables (Note 10)

- Estimation of provision and contingent liabilities (Note 25 and 32)

- Estimation of Share based payments to employees (Note 37)

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 group and that are believed to be reasonable under the circumstances.

2A. Recent accounting pronouncements:

Standards issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of Cash Flows’ and Ind AS 102, ‘Share-based payment.’ These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IaSb) to IAS 7, ‘Statement of Cash Flows’ and IFRS 2, ‘Share-based payment,’ respectively. The amendments are applicable to the Company from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that includes a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The Company is evaluating the requirements of the amendment and the impact on the financial statements is being evaluated.

Note 3: 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 Finance Director 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.

Note 4 - 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 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 grant date.

Fair Value of options granted

The fair value at the grant date of options granted during the year ended March 31, 2017 was Rs.542.70 per option (March 31, 2016 : Rs.465.45 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.

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.

(b) Restricted Stock Units (RSU’s)

(ii) Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.

If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3.

Note 5: 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.

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.

As at March 31, 2017, the Company had undrawn letter of credit facilities in aggregate of Rs.1,98.90 Lacs (March 31, 2016: Rs.10,97.66 Lacs, April 1, 2015: Rs.1,35.88 Lacs) with a 90 days term. As part of the regular annual process the Company’s intention is that these facilities will again be renewed in financial year 2017-18.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date.

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- commodity price risk;

The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The objective of the Company’s Management of market risk is to maintain this risk within acceptable parameters, while optimising returns. The Company’s exposure to, and management of, these risks is explained below.

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. Basis of provision for doubtful receivables is dependent on the customer ageing, customer category and historical experience of the Company.

The gross carrying amount of trade receivables is Rs.134,80.56 Lacs as at March 31, 2017 and Rs.107,81.62 Lacs as at March 31, 2016

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in debt instruments. The Company has concentrated its main 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.

The Company’s maximum exposure to credit risk as at March 31, 2017, March 31, 2016 and April 01, 2015 is the carrying value of each class of financial assets as disclosed in Note 38(iii).

Note 6: 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) Share 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 convenants.

Note 7: First-time adoption of Ind AS

Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (“previous GAAP or IGAAP”). An explanation of how the transition from IGAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

In preparing these Ind AS financial statements, the Company has availed certain optional exemptions and mandatory exceptions in accordance with Ind AS 101 from IGAAP to Ind AS, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and IGAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its IGAAP financial statements, including the Balance Sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016.

A1. Ind AS optional exemptions

(a) Deemed cost for property, plant and equipment and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 ‘Intangible Assets’ and Investment property covered by Ind AS 40 ‘Investment Properties’. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their IGAAP carrying value.

(b) Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

(c) Share-based payment transactions

Ind AS 101 permits a first-time adopter to not apply Ind AS 102 ‘Share-based payment’ to equity instruments that vested before date of transition to Ind ASs. The Company has elected to apply this exemption for such arrangements.

(d) Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

A2. Ind AS mandatory exceptions

(a) Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with IGAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with IGAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model and fair value of the investment property in accordance with Ind AS at the date of transition as these were not required under IGAAP.

(b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Consequently, the Company has applied the above assessment based on facts and circumstances exist at the transition date.

(c) Derecognition of Financial Assets and Financial Liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirement provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the derecognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

B. Reconciliations between IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from IGAAP to Ind AS.

The presentation requirements under IGAAP differs from Ind AS and hence the IGAAP information has been reclassified for ease of reconciliation with Ind AS. The reclassified IGAAP information is derived based on the audited financial statements of the Company for the year ended March 31, 2015 and March 31, 2016.

Notes to the Reconciliations Note 1: Security Deposits

Under the IGAAP, interest free lease deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid expense. Consequent to this change, the amount of security deposits decreased by Rs.7,37.45 Lacs as at March 31, 2016 (April 1, 2015 : Rs.7,35.65 Lacs). The prepaid expenses increased by Rs.6,89.79 Lacs as at March 31, 2016 (April 1, 2015 : Rs.7,14.67 Lacs). Total equity decreased by Rs.20.98 Lacs as on April 1, 2015. The profit for the year and total equity as at March 31, 2016 decreased by Rs.26.68 Lacs due to amortisation of the prepaid expenses of Rs.1,76.08 Lacs which is partially off-set by the notional interest income of Rs.1,49.40 Lacs recognised on security deposits.

Note 2: Employee stock option plan

Under the IGAAP, the cost of equity-settled employee share-based plan were recognised using the intrinsic value method. Under Ind AS, the cost of equity settled share-based plan is recognised based on the fair value of the options as at the grant date. Consequently, the amount recognised in share option outstanding account as at March 31, 2016 is Rs.11,40.33 Lacs (April 1, 2015 : Rs.15,63.00 Lacs). The profit for the year ended March 31, 2016 increased by Rs.5,58.19 Lacs and the total equity has increased by Rs.5,58.19 Lacs.

Note 3: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of the Statement of Profit and Loss. Under the IGAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increased by Rs.1,81.72 Lacs. There is no impact on the total equity as at March 31, 2016.

Note 4: Excise Duty

Under the IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Rs.480,92.02 Lacs. There is no impact on the total equity and profit.

Note 5: Deferred Tax

Under Ind AS deferred tax has been recognised on the adjustments made on transition to Ind AS. Leasehold land is a non-depreciable asset, Management is expecting that its carrying value will be recovered through sale and the indexation benefit at the time of disposal will be available, accordingly deferred tax asset on the difference between carrying value and indexed value has been created.

Note 6: Revenue related Adjustments

Company runs various promotional programmes for retailer, wholeseller and stockist. The Company estimates the fair value of those incentives/benefits given to the customer and reduce it from total sales consideration to record revenue on net basis. This change has resulted in a decrease in total revenue and decrease in total expenses for the year ended March 31, 2016 by Rs.294,09.64 Lacs. There is no impact on the total equity and profit.

Note 7: Retained Earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments. Note 8: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in the Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as ‘Other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under IGAAP.

Note 8:

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act are as follows:

Note 9:

The Shareholders of the Company through a postal ballot had approved the issue of bonus equity shares in the ratio of 1:1 by capitalization of general reserves. Accordingly, on September 28, 2015, the Company allotted 13,59,92,817 bonus equity shares of Rs.1/- each fully paid-up to the existing shareholders as on the record date. The paid up share capital of the Company stands increased from Rs.13,60 Lacs to Rs.27,20 Lacs.

Note 10:

On April 29, 2015, the Company had announced a Voluntary Retirement Scheme (VRS) for the employees at the toothpowder manufacturing facility at Waluj, Aurangabad, Maharashtra. The scheme was accepted on May 04, 2015 by all affected employees. Post acceptance of the offer by all the workmen under the said Scheme, the toothpowder manufacturing operations at the Aurangabad factory were discontinued effective May 05, 2015. Exceptional items for the year ended March 31, 2016 comprise of VRS expenses of Rs.29,25.54 Lacs and other expenses of Rs.2,08.93 Lacs pertaining to the discontinuance of the operations at the Aurangabad Factory. Assets pertaining to Aurangabad Factory have been disclosed as Assets held for sale [Refer Note 15]. The Company is making progress in this matter by continuously engaging with the authorities in order to effect transfer of rights in respect of the aforesaid property.


Mar 31, 2015

(A) Rights, Preferences and Restrictions attached to Shares : The Company has one class of Equity Shares having par value of Rs.1 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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) Shares held by Ultimate Holding Company and its Subsidiaries : (i) 5,44,76,347 (Previous Year : 5,44,76,347) Equity Shares are held by Colgate-Palmolive Company, U.S.A., the Ultimate Holding Company. (ii) 1,48,79,426 (Previous Year : 1,48,79,426) Equity Shares are held by Colgate-Palmolive (Asia) Pte. Ltd., Singapore, Subsidiary of the Ultimate Holding Company. (iii) 563 (Previous Year : 563) Equity Shares are held by Norwood International Incorporated, U.S.A., Subsidiary of the Ultimate Holding Company.

As at March 31, 2015 As at March 31, 2014 Rs. Lacs Rs. Lacs

Note 2 : Contingent Liabilities and Commitments

(To the extent not provided for)

(A) Contingent Liabilities

Claims against the Company not acknowledged as debts :

- Excise and Related Matters 38,63.23 38,59.24

- Service Tax Matters 5,81.62 5,81.62

- Income Tax Matters 2,67.07 2,67.07

- Provident Fund Matters 7.37 7.37

- Commercial Matters 1,35.55 1,25.40

Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with the relevant authorities.

Note 3 : Revenue from Operations

(A) The amount of excise duty disclosed as deduction from turnover is the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed as ''Increase/ (Decrease) in Excise Duty on Finished Goods'' in Note 25.

II. Defined Benefit Plans

Contribution to Gratuity Fund (Funded Scheme), Provident Fund (Funded Scheme)# and contribution to Pension Scheme (Non-Funded Scheme)

In accordance with Accounting Standard - 15, actuarial valuation was performed in respect of the aforesaid defined benefit plans based on the following assumptions :

#The Guidance Note on Implementing AS 15, ''Employee Benefits'' issued by the Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India states that Provident Funds set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be defined benefit plans as per para 26(b) of AS 15.

IV. The employee compensation expense for stock options and restricted stock units during the year ended March 31, 2015 is Rs.18,66 Lacs ( Previous Year : Rs.8,41 Lacs) which is borne by Colgate- Palmolive (India) Limited and is included in employee benefits expense.

Note 4 : Operating Leases

(A) The Company has significant operating leases for machinery, office premises, residential premises, warehouses, laptops, printers and vehicles. These lease arrangements include both cancellable and noncancellable leases. Description of significant operating lease arrangements in respect of premises : The Company has given refundable interest free security deposit under the lease agreements. All agreements contain provision for renewal at the option of either party and also include escalation clause. All agreements provide for restriction on sub lease.

(B) The Company has given office premise space under non-cancellable operating lease for a period of 3 years. The rental income from the asset given on lease has been disclosed as "Lease Rentals" under Other Income in Note 22 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 agreement. Agreement contain provision for renewal at the option of either party. Agreement provide for restriction on sub lease.

Note 5 : Segment Information

The Company has considered the business segment as the primary reporting segment on the basis that risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the Company has considered Geographical Segment as the secondary reporting segment based on sales within India and outside India. The Company has identified ''Personal Care (including Oral Care)'' as its only primary reportable segment, which includes products such as Soaps, Cosmetics and Toilet Preparations.

Note 6 : Disclosure of Related Parties

Related Party Disclosures, as required by Accounting Standard - 18, "Related Party Disclosures", are given below :

i) Ultimate Holding Company : Colgate-Palmolive Company, U.S.A.

ii) Group Companies where : Colgate-Palmolive Mktg. SDN BHD, Malaysia common control exists Colgate-Palmolive East Africa Ltd., Kenya

Colgate-Palmolive Morocco : Colgate-Palmolive Pty. Ltd., South Africa : Colgate-Palmolive (Thailand) Ltd. : Colgate-Palmolive (H.K.) Ltd., Hongkong* : Colgate-Palmolive Management Services (H.K.) Limited : Colgate-Palmolive (China) Co. Ltd., China : Colgate Palmolive (Vietnam) Ltd. : Colgate Sanxiao Company Limited : Colgate-Palmolive SAS, Columbes : Colgate Palmolive Temizlik Urunleri Sanayi ve Ticaret A.S. : Colgate-Palmolive Cameroun S.A., Cameroun : Colgate-Palmolive Romania srl. : Hawley & Hazel Chemical Co., (Zhongshan) Ltd. : Colgate-Palmolive (Eastern) Pte. Ltd., Singapore : Colgate-Palmolive Indústrial Ltda., Brazil : Colgate-Palmolive (Asia) Pte. Ltd., Singapore : Norwood International Incorporated, U.S.A. : Colgate-Palmolive Tanzania Limited

Colgate-Palmolive Pty. Ltd., Boksburg : Colgate Global Business Services Pvt. Ltd. : Colgate-Palmolive Zambia Inc. : Colgate-Palmolive Europe SARL : Colgate-Palmolive S.A., France* : Colgate-Palmolive (Kazakistan) LLP : Colgate-Palmolive Europe SARL, Italy : Mission Hills S.A. DE. C. V., Mexico* : Colgate Palmolive Bt. Ltd., (Blantyre), Malawi : Colgate Oral Pharmaceuticals Inc. Carrollton, U.S.A. : Colgate Palmolive S.A. DE. C. V. Mexico* : Colgate-Palmolive Senegal : Colgate-Palmolive Italia S.r.l., Italy : Colgate-Palmolive Belgium S.A./N.V.* : Colgate Philippines Inc. : Colgate-Palmolive Canada Inc* : Colgate-Palmolive Mfg (Poland)* : Colgate-Palmolive S.P.A., Italy

Colgate-Palmolive Services (Poland) Sp.z.o.o : Colgate Palmolive West East Investments, U.S.A. : Tom''s Of Maine, U.S.A. : Colgate-Palmolive Ghana Ltd. : Colgate-Palmolive Europe Sarleu Div : CP Middle East Exports Ltd. : Colgate-Palmolive (Myanmar) Limited

* There are no transactions with the Company during the current year iii) Key Management Personnel : I. Bachaalani (effective October 1, 2014)

: P. Parameswaran (Ms.) (Up to October 1, 2014) : N. Ghate : G. Nthunzi (effective January 1, 2013)

Note 7 : Research and Development expenses of the year for the Company aggregated to Rs.6,76.48 Lacs (Previous Year : Rs. 8,65.80 Lacs).

Note 8 : Exceptional Items for the year ended March 31, 2014 represents total consideration after adjustments to relevant assets and liabilities, on the transfer of the whole of the Company''s "Global Shared Service Organisation" (GSSO Division) as a going concern, by way of a slump sale to Colgate Global Business Services Private Limited (CGBSPL), a 100% subsidiary of the Ultimate Holding Company, Colgate-Palmolive Company, U.S.A., with effect from June 1, 2013.

Note 9 : On April 29, 2015, the Company announced a Voluntary Retirement Scheme (VRS) for the employees at the toothpowder manufacturing facility at Waluj, Aurangabad, Maharashtra. The scheme was accepted on May 04, 2015 by all affected employees. Post acceptance of the offer by all the workmen under the said Scheme, the toothpowder manufacturing operations at the Aurangabad factory have been discontinued effective May 05, 2015.

Note 10 : Previous year figures have been regrouped wherever necessary to conform with current year''s classification. Signature to Notes 1 to 40


Mar 31, 2014

Note 1 : Contingent Liabilities and Commitments

(To the extent not provided for)

(A) Contingent Liabilities

Claims against the Company not acknowledged as debts :

- Excise and Related Matters 38,59.24 38,53.52

- Service Tax Matters 5,81.62 5,81.62

- Income Tax Matters 2,67.07 2,67.07

- Provident Fund Matters 7.37 7.37

- Commercial Matters 1,25.40 1,64.91

Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with the relevant authorities.

(B) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances of 187,27.16 118,02.15 Rs. 39,20.80 Lacs (Previous Year: Rs. 54,83.62 Lacs)]

Note 2 : Segment Information

In accordance with the requirements of Accounting Standard - 17 "Segment Reporting", the Company has identified Business Segment as its primary segment. The Company''s Business Segment is "Personal Care (including Oral Care)" and hence it has no other primary reportable segments. Non Reportable Segment has been disclosed as unallocated reconciling item. Segment revenue and Segment expenses have been accounted on the basis of their relationship to the operating activities of the Company. Assets and liabilities which relate to the enterprise as a whole and are not allocable to the segment on a reasonable basis have been included under unallocated assets/liabilities. Revenue and expenses pertaining to non reportable segment have been disclosed as unallocated results.

Note 3: Research and Development expenses of the year for the Company aggregates Rs. 8,65.80 Lacs (Previous Year: Rs. 8,41.38 Lacs).

Note 4: The Company after obtaining necessary approvals from the Board of Directors and Shareholders, sold and transferred the whole of the Company''s "Global Shared Services Organization" (GSSO Divison) by way of a slump sale to Colgate Global Business Services Private Limited (CGBSPL), a 100% subsidiary of the Ultimate Holding Company, Colgate-Palmolive Company, U.S.A. with effect from June 1, 2013, on a going concern basis for a total consideration of Rs. 59,89 Lacs. This amount, after necessary adjustments to the relevant assets and liabilities of the erstwhile division is shown under "Exceptional Items". The Capital Gain tax arising from the transaction is included in "Tax Expense".


Mar 31, 2013

Note 1 : Segment Information

In accordance with the requirements of Accounting Standard-17 "Segment Reporting", the Company has identified Business Segment as its primary segment. The Company''s Business Segment is "Personal Care (including Oral Care)" and hence it has no other primary reportable segments. Non-Reportable Segment has been disclosed as unallocated reconciling item. Segment revenue and Segment expenses have been accounted on the basis of their relationship to the operating activities of the Company. Assets and liabilities which relate to the enterprise as a whole and are not allocable to the segment on a reasonable basis have been included under unallocated assets/liabilities. Revenue and expenses pertaining to non reportable segment have been disclosed as unallocated results.

Note 2 : Disclosure of Related Parties

Related Party Disclosures, as required by Accounting Standard-18, "Related Party Disclosures", are given below :

i) Ultimate Holding Company : Colgate-Palmolive Company, U.S.A.

ii) Group Companies where common control exists

: Colgate-Palmolive (Malaysia) Mktg. SDN BHD, Malaysia

: Colgate-Palmolive East Africa Ltd., Kenya

: Colgate-Palmolive Marocco Limited

: Colgate-Palmolive Pty. Ltd., South Africa

: Colgate-Palmolive (Thailand) Ltd.

: Colgate-Palmolive (H.K.) Ltd., Hongkong

: Colgate-Palmolive Management Services (H.K.) Limited

: Colgate-Palmolive (China) Co. Ltd., China

: Colgate-Palmolive Son Hai Ltd., Vietnam

: Colgate Sanxiao (Consumer Products) Company Limited

: Colgate-Palmolive Temizlik, Urunleri, Turkey

: Colgate-Palmolive Cameroun S.A., Cameroun

: Colgate-Palmolive Romania srl.

: Colgate-Palmolive (Eastern) Pte. Ltd., Singapore

: Colgate-Palmolive Industria E Commercio Ldta, Brazil

: Colgate-Palmolive (Asia) Pte. Ltd., Singapore

: Norwood International Incorporated, U.S.A.

: Colgate-Palmolive Tanzania Limited

: CP Hawley & Hazel Chemical Co., (ZS) Ltd.

: Colgate-Palmolive Zambia Inc.

: Colgate-Palmolive Europe SARL

: Colgate Palmolive Bt. Ltd., Blantyre, Malawi

: Colgate Oral Pharmaceuticals Inc. Carrollton, U.S.A.

: Colgate-Palmolive Senegal

: Colgate-Palmolive Gabon

: Colgate-Palmolive Italia S.r.l., Italy

: Colgate Philippines Inc.

: Colgate-Palmolive Canada Inc.

: Colgate-Palmolive Pty. Ltd., Australia

iii) Key Management Personnel : M.V. Deoras (Upto January 31, 2012)

: P. Parameswaran (Ms.) (effective February 1, 2012)

: P.E. Alton (Upto December 31, 2012)

: K. V. Vaidyanathan (Upto November 30, 2011)

: N. Ghate (effective October 1, 2011)

: G. Nthunzi (effective January 1, 2013)

Note 3 : Research and Development expenses of the year for the Company aggregates Rs. 8,41.38 Lacs (Previous Year : Rs. 5,03.40 Lacs).

Note 4 : Appointment of G. Nthunzi as the Whole-time Director and Chief Financial Officer of the Company effective January 1, 2013, is pending receipt of approval from the Central Government and approval of the Shareholders of the Company will be sought at the ensuing Annual General Meeting. During the year, an aggregate remuneration of Rs. 1,19.22 Lacs has been paid to him.

Note 5 : During the current year, the Board of Directors at their meeting held on March 25, 2013, approved, subject to the consent of the shareholders, to sell and transfer the whole of the Company''s "Global Shared Services Organization" (GSSO Divison) by way of a slump sale to Colgate Global Business Services Private Limited (CGBSPL), a 100% subsidiary of the Ultimate Holding Company, Colgate- Palmolive Company, U.S.A. with effect from June 1, 2013, on a going concern basis for a total consideration of Rs. 59,89.00 Lacs. The consent of the shareholders has been obtained vide a postal ballot.


Mar 31, 2012

(A) Shares held by Ultimate Holding Company and its Subsidiaries

(i) 5,44,76,347 (Previous Year : 5,44,76,347) Equity Shares are held by Colgate-Palmolive Company, U.S.A., the Ultimate Holding Company.

(ii) 1,48,79,426 (Previous Year : 1,48,79,426) Equity Shares are held by Colgate-Palmolive (Asia) Pte. Ltd., Singapore, Subsidiary of the Ultimate Holding Company.

(iii) 563 (Previous Year : 563) Equity Shares are held by Norwood International Incorporated, U.S.A., Subsidiary of the Ultimate Holding Company.

(B) Rights, Preference and Restriction attached to Shares

The Company has one class of Equity Shares having par value of Rs 1 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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.

(A) During the previous year, pursuant to the Scheme of Amalgamation ("the Scheme") sanctioned by the order dated August 11, 2010 of the High Court of Judicature at Andhra Pradesh, CC Healthcare Products Private Limited ("CCH"), 100% subsidiary of the Company, engaged in the business of manufacturing of toothpowder, has been amalgamated with the Company with effect from April 1, 2009. The amalgamation has been accounted as per the Scheme which is in accordance with the "Pooling of Interests" method as prescribed by Accounting Standard (AS-14), 'Accounting for Amalgamations'.

In accordance with the said Scheme:

i) the assets and liabilities of CCH have been taken over by the Company with effect from April 1, 2009 and have been recorded at their respective book values.

ii) General Reserve and Surplus in the Statement of Profit and Loss aggregating Rs 2,56.27 Lacs as on April 1, 2009 of CCH has been transferred to General Reserve.

iii) 2,00,000 Equity Shares of Rs 10 each fully paid in CCH held as an investment by the Company stands cancelled. The deficit of Rs 1,52.89 Lacs between the net assets and reserves taken over from CCH and the book value of investment held by the Company in CCH, after adjustment of dividend payable by CCH, have been adjusted to General Reserve.

(A) There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 1 : Contingent Liabilities and Commitments

(To the extent not provided for)

(A) Contingent Liabilities

Claims against the Company not acknowledged as debts :

- Excise and Related Matters 39,40.70 41,91.42

- Service Tax Matters 4,78.15 5,30.49

- Income Tax Matters 3,10.93 3,10.93

- Provident Fund Matters 7.37 7.37

- Commercial Matters 1,69.13 1,55.41

Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with the relevant authorities.

(A) The amount of excise duty disclosed as deduction from turnover is the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed as 'Increase/(Decrease) in Excise Duty on Finished Goods' in Note 26.

(A) Voluntary Retirement Scheme was offered to the employees at the toothpowder factory in Hyderabad during the year. All the employees have availed the benefit of the said Scheme (Cost Rs 8,22 Lacs) and the manufacturing operations have discontinued.

I. The Guidance Note issued by Actuarial Society of India on Implementing AS-15 issued by the Accounting Standard Board (ASB) of the Institute of Chartered Accountants of India states that Provident Funds set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be Defined Benefit Plans in accordance with paragraph 26(b) of AS-15. Pursuant to the Guidance Note, the actuarial valuation carried out as at March 31, 2012 has determined the liability in respect of the shortfall of interest earnings of Fund as Nil. As per the actuarial valuation report, the interest shortfall liability being "Other Long-term Employee Benefits", detailed disclosures as prescribed in the Accounting Standard are not required.

(A) Research and Development expenses of the year for the Company aggregates Rs 5,03.40 Lacs (Previous Year : Rs 4,32.71 Lacs)

Note 2 : Segment Information

In accordance with the requirements of Accounting Standard-17 "Segment Reporting", the Company has identified Business Segment as its primary segment. The Company's Business Segment is "Personal Care (including Oral Care)" and hence it has no other primary reportable segments. Non Reportable Segment has been disclosed as unallocated reconciling item. Segment revenue and Segment expenses have been accounted on the basis of their relationship to the operating activities of the Company. Assets and liabilities which relate to the enterprise as a whole and are not allocable to the segment on a reasonable basis have been included under unallocated assets/liabilities. Revenue and expenses pertaining to non reportable segment have been disclosed as unallocated results.

Note 3 : Reversal in Current Tax pertaining to prior year includes reversals for Fringe Benefit Tax of Rs 1,90.19 Lacs (Previous Year : Rs 7,49.02 Lacs).

Note 4 : Appointment of P. Parameswaran (Ms.) as the Managing Director of the Company effective February 1, 2012, is pending receipt of approval from the Central Government and approval of the Shareholders of the Company will be sought at the ensuing Annual General Meeting. During the year, an aggregate remuneration of Rs 61.29 Lacs has been paid to her.

Note 5 : The financial statements for the year ended March 31, 2011 were prepared as per the then applicable, erstwhile Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

Schedule 18 : Employee Benefits

In accordance with Accounting Standard 15 "Employee Benefts", the Company has classified various benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund*

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers Contribution to Employees State Insurance

ii. Employers Contribution to Employees Pension Scheme 1995

* The Guidance on Implementing AS 15, "Employee Benefits" issued by the Accounting Standards Board (ASB) states benefit involving employer established provident funds, which require interest shortfall to be recompensed are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the Companys actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly, the Company is unable to exhibit the related information.

III Other Employee Benefit Plan

The liability for leave encashment as at the year end is Rs. 12,41.69 Lacs (Previous Year : Rs. 8,73.92 Lacs). Included in Provisions (Refer Schedule 12).

Schedule 19 : Segment Information

In accordance with the requirements of Accounting Standard-17 "Segment Reporting", the Companys Business Segment is "Personal Care (including Oral Care)" and hence it has no other primary reportable segments. Non Reportable Segment has been disclosed as unallocated reconciling item. Segment revenue and Segment expenses have been accounted on the basis of their relationship to the operating activities of the Company. Assets and liabilities which relate to the enterprise as a whole and are not allocable to the segment on a reasonable basis have been included under unallocated assets/liabilities. Revenue and expenses pertaining to non reportable segment have been disclosed as unallocated results.

Schedule 20 : Disclosure of Related Parties

Related Party Disclosures, as required by Accounting Standard-18, "Related Party Disclosures", are given below:

i) Ultimate Holding Company : Colgate-Palmolive Company, U.S.A.

ii) Subsidiaries : CC Healthcare Products Private Limited

(Merged with the Company during the year with appointed date April 1, 2009)

iii) Group Companies where : Colgate-Palmolive (Malaysia) Mktg. SDN BHD common control exists : Colgate-Palmolive, East Africa Ltd., Kenya

: Colgate-Palmolive, Marocco Limited

: Colgate-Palmolive Pty Ltd., South Africa

: Colgate-Palmolive Pty Ltd., Australia

: Colgate-Palmolive (Thailand) Ltd.

: Colgate-Palmolive (H.K.) Ltd., Hong Kong

: Colgate-Palmolive Management Services (H.K.) Limited

: Colgate-Palmolive (China) Co. Ltd., China (formerly known as Colgate-Palmolive (Guangzhou) Co. Ltd., China)

: Colgate-Palmolive Son Hai Ltd., Vietnam

: Colgate Sanxiao (Consumer Products) Company Limited

: Hawley & Hazel Chemical Company (H.K.) Limited

: Colgate-Palmolive, Temizlik, Urunleri, Turkey

: Colgate-Palmolive Romania srl.

: Colgate-Palmolive (Eastern) Pte. Ltd., Singapore

: Colgate-Palmolive Industria E Commercio Ldta, Brazil

: Colgate-Palmolive (Asia) Pte. Ltd. Singapore

: Colgate-Palmolive Tanzania Limited

: CP Hawley & Hazel Chemical Co., (ZS) Ltd.

: Colgate-Palmolive Zambia Inc.

: Colgate-Palmolive Services Poland

: Colgate-Palmolive (PNG) Limited, PNG

: Hills Pet Nutrition, Inc., Topeka

: Hills Pet Nutrition Manufacturing, s. r. o.

: Colgate-Palmolive Bt Ltd., Blantyre, Malawi

: Colgate Oral Pharmaceuticals, Inc. Carrollton, U.S.A.

: Colgate-Palmolive CACE Region, Istanbul, Turkey

: Colgate-Palmolive (Fiji) Ltd.

: Colgate-Palmolive Senegal

iv) Key Management Personnel : Roger Calmeyer (Upto January 31, 2010)

: Mukul Deoras (Effective February 1, 2010)

: Moses Elias (Upto November 30, 2010)

: K. V. Vaidyanathan

: Paul E. Alton (Effective September 1, 2010)

v) Relatives of Key Management Personnel : Mrs. Pratima Elias (Upto November 30, 2010)

Schedule 23 : Contingencies and Commitments

2. Contingent liabilities not provided for in respect of:

(Refer Note 6 on Schedule 17)

(i) Guarantees given by the Company 9,30.00 7,82.00

(ii) Counter Guarantees given to the Banks 4,06.47 3,34.45

(iii) Cheques Discounted with Banks 25.23 85.42

(iv) Claims against the Company not acknowledged as debts 1,55.41 1,55.20

(v) Excise and Related Matters 41,91.42 19,94.30

(vi) Service Tax Matters 5,30.49 12,49.56

(vii) Income Tax Matters 3,10.93 2,22.26

(viii) Provident Fund Matters 7.37 7.37

Note :

Future cash flow in respect of (iv) to (viii) above, if any, is determinable only on receipt of judgements/decisions pending with the relevant authorities.

Schedule 24 : Others/Contingencies

Note :

Direct/Indirect Taxes

Represents estimates made for probable liabilities arising out of pending disputes/litigations with various tax authorities. The timing of the outflow with regard to the said matter depends on the exhaustion of remedies available to the Company under the law and hence the Company is not able to reasonably ascertain the timing of the outflow.

Schedule 25 : Supplementary Information

Notes :

(i) In terms of the Industrial Entrepreneurs Memoranda filed with the Government of India, Ministry of Commerce and Industry, New Delhi, the aggregate registered annual capacity of toothpaste and toothpowder at Baddi, Goa, Hyderabad and Aurangabad is 165,475 tonnes (Previous Year: 165,475 tonnes) and flavour is 6,675 tonnes (Previous Year: 4,475 tonnes). The annual capacities of the erstwhile Professional Oral Care Products Private Limited (POC) engaged in the manufacture of toothpaste at Goa and CC Healthcare Products Private Limited (CCHL) engaged in the manufacture of toothpowder at Hyderabad have been included in the said annual capacity of 165,475 tonnes following merger of POC and CCHL with the Company from April 1, 2009 in terms of the Orders issued by the Bombay High Court at Goa and Andhra Pradesh High Court sanctioning the respective schemes of Amalgamation of POC and CCHL with the Company.

(ii) The bristling operations for toothbrushes and shave brushes are carried out under manufacturing arrangements with third parties.

(iii) The installed capacity as shown above have been certified by the Executive Vice-President (Manufacturing and Product Supply Chain) and not verified by the Auditors, being a technical matter.

8. There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

Note :

Approval for appointment of Mr. Paul E. Alton as the Whole-time Finance Director & Chief Financial Officer of the Company effective September 1, 2010, will be sought at the ensuing Annual General Meeting. During the year, an aggregate remuneration of Rs. 2,66.03 Lacs has been paid to him.

10. The amount of excise duty disclosed as deduction from turnover is the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed as excise duty expense in "Cost of Goods Sold - Increase/ (Decrease) in Excise Duty on Finished Goods" under Schedule 14 annexed and forming part of Profit and Loss Account.

11. Research and Development expenses of the year for the Company amount to Rs. 4,32.71 Lacs (Previous Year: Rs. 2,97.28 Lacs).

12. (a) Pursuant to the Scheme of Amalgamation ("the Scheme") sanctioned by the order dated August 11, 2010 of the High Court of Judicature at Andhra Pradesh, CC Healthcare Products Private Limited ("CCH"), 100% subsidiary of the Company, engaged in the business of manufacturing of tooth powder, has been amalgamated with the Company with effect from April 1, 2009. The amalgamation has been accounted as per the Scheme which is in accordance with the "Pooling of Interests" method as prescribed by Accounting Standard (AS-14), Accounting for Amalgamations.

In accordance with the said Scheme :

a) the assets and liabilities of CCH have been taken over by the Company with effect from April 1, 2009 and have been recorded at their respective book values.

b) General Reserve and Profit and Loss Balance aggregating Rs. 2,56.27 Lacs as on April 1, 2009 of CCH has been transferred to General Reserve of the Company.

c) 2,00,000 Equity Shares of Rs. 10 each fully paid in CCH held as an investment by the Company stands cancelled. The deficit of Rs. 1,52.89 Lacs between the net assets and reserves taken over from CCH and the book value of investment held by the Company in CCH, after adjustment of dividend payable by CCH, have been adjusted to General Reserve.

13. During the previous year, pursuant to the Scheme of Amalgamation ("the Scheme") sanctioned by the order dated April 16, 2010 of Bombay High Court at Goa, Professional Oral Care Products Private Limited ("POC"), 100% subsidiary of the Company, engaged in the business of manufacturing of toothpaste, was amalgamated with the Company with effect from April 1, 2009. The amalgamation has been accounted as per the Scheme which is in accordance with the "Pooling of Interests" method as prescribed by Accounting Standard (AS-14), Accounting for Amalgamations.

In accordance with the said Scheme :

i) the assets and liabilities of POC have been taken over by the Company with effect from April 1, 2009 and have been recorded at their respective book values.

ii) Capital Reserve of Rs. 2,24.96 Lacs and General Reserve and Profit and Loss Balance aggregating Rs. 6,15.62 Lacs of POC as on April 1, 2009 has been transferred to Capital Reserve and General Reserve of the Company, respectively.

iii) 12,01,200 Equity Shares of Rs. 10 each fully paid in POC held as an investment by the Company stands cancelled. The deficit of Rs. 4,02.57 Lacs between the net assets and reserves taken over from POC and the book value of investment held by the Company in POC, after adjustment of dividend payable by POC, have been adjusted to Capital Reserve by Rs. 2,51.46 Lacs and the balance deficit has been adjusted to General Reserve.

14. Current Tax is net of prior year reversals of Fringe Benefit Tax of Rs. 7,49.02 Lacs (Previous Year: Rs. Nil).

15. In view of the Scheme of Amalgamation referred to in Note 12 above, the current year figures are not comparable with those of the previous year.

16. Refer Annexure for additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956.

17. Previous years figures have been re-grouped and re-arranged wherever necessary.

The Schedules (1 to 25) referred to herein above form an integral part of the financial statements.


Mar 31, 2010

Employee Benefits

In accordance with Accounting Standard 15 “Employees Benefits”, the Company has classifed various benefits provided to employees as under:

I Defned Contribution Plans

a. Provident Fund *

b. Superannuation Fund

c. State Defned Contribution Plans

i. Employers’ Contribution to Employees’ State Insurance

ii. Employers’ Contribution to Employees’ Pension Scheme, 1995.

Segment Information

In accordance with the requirements of Accounting Standard-17 “Segment Reporting”, the Company’s Business Segment is “Personal Care (including Oral Care)” and hence it has no other primary reportable segments. Non Reportable Segment has been disclosed as unallocated reconciling item. Segment revenue and Segment expenses have been accounted on the basis of their relationship to the operating activities of the Company. Assets and liabilities which relate to the enterprise as a whole and are not allocable to the segment on a reasonable basis have been included under unallocated assets/liabilities. Revenue and expenses pertaining to non reportable segment have been disclosed as unallocated results.

Disclosure of Related Parties

Related Party Disclosures, as required by Accounting Standard 18, “Related Party Disclosures”, are given below:

i) Ultimate Holding Company : Colgate-Palmolive Company, U.S.A.

ii) Subsidiaries

: Professional Oral Care Products Private Limited

(Merged with the Company effective April 1, 2009) : CC Healthcare Products Private Limited : Advanced Oral Care Products Private Limited

(Merged during the year with Professional Oral Care Products

Private Limited effective April 1, 2008) : Colgate-Palmolive (Nepal) Private Limited

(Upto November 19, 2008)

iii) Group Companies where common control exists

: Colgate-Palmolive (Malaysia) Mktg. SDN BHD

: Colgate-Palmolive, East Africa Ltd., Kenya

: Colgate-Palmolive, Marocco Limited

: Colgate-Palmolive Pty Ltd., South Africa

: Colgate-Palmolive Pty Ltd., Australia

: Colgate-Palmolive (Thailand) Ltd.

: Colgate-Palmolive (H.K.) Ltd., Hongkong

: Colgate-Palmolive Management Services (H.K.) Limited

: Colgate-Palmolive (China) Co. Ltd., China

(formely known as Colgate-Palmolive (Guangzhou) Co. Ltd., China)

: Colgate-Palmolive Son Hai Ltd., Vietnam

: Colgate Sanxiao (Consumer Products) Company Limited

: Colgate-Palmolive (U.K.) Limited

: Hawley & Hazel Chemical Company (H.K.) Limited

: Colgate-Palmolive, Temizlik, Urunleri, Turkey

: Colgate-Palmolive Cameroun S.A.

: Colgate-Palmolive Romania srl.

: Mission Hills S.A. DE C.V.

: Colgate-Palmolive (Eastern) Pte Ltd., Singapore

: Colgate-Palmolive Industria E Commercio Ldta, Brazil

: Colgate-Palmolive (Asia) Pte. Ltd., Singapore

: Colgate-Palmolive Tanzania Limited

: CP Hawley & Hazel Chemical Co., (ZS) Ltd.

: Colgate-Palmolive Zambia Inc.

: Colgate-Palmolive Russia

: Colgate-Palmolive Services Poland

: Colgate-Palmolive (PNG) Limited, PNG

: Hills Pet Nutrition, Inc., Topeka

: Colgate Flavours and Fragrances Inc., New York

: Colgate Palmolive Bt Ltd., Blantyre, Malawi

: Colgate Oral Pharmaceuticals, Inc. Carrollton, USA

: Colgate Palmolive CACE Region, Istanbul, Turkey

iv) Key Management Personnel

: Roger Calmeyer (Upto January 31, 2010)

: Mukul Deoras (Effective February 1, 2010)

: Moses Elias

: K. V. Vaidyanathan

v) Relatives of Key Management Personnel

: Mrs. Pratima Elias

3. There are no delays in payments to Micro and Small enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identifed on the basis of information available with the Company. This has been relied upon by the Auditors.

4. The amount of excise duty disclosed as deduction from turnover is the total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock and excise duty paid but not recovered, which has been disclosed as excised duty expense in “Cost of Goods Sold - Increase / (Decrease) in Excise Duty on Finished Goods” under Schedule 14 annexed and forming part of profit and Loss Account.

5. Research and Development expenses of the year for the Company amount to Rs. 2,97.28 Lacs (Previous Year : Rs. 2,01.56 Lacs).

6. Pursuant to the Scheme of Amalgamation sanctioned by the order dated April 27, 2009 of the Bombay High Court at Goa, Advanced Oral Care Private Limited (“AOC”) has been amalgamated with Professional Oral Care Products Private Limited (“POC”). Accordingly, 150,000 equity shares of Rs. 100 each fully paid held in AOC by the Company have been cancelled and 300 additional shares of Rs. 100 each fully paid up of POC have been issued to the Company.

7. Pursuant to the Scheme of Amalgamation (“the Scheme”) sanctioned by the order dated April 16, 2010 of Bombay High Court at Goa, Professional Oral Care Products Private Limited (“POC”), 100% subsidiary of the Company, engaged in the business of manufacturing of toothpaste, has been amalgamated with the Company with effect from April 1, 2009. The amalgamation has been accounted as per the Scheme which is in accordance with the “Pooling of Interests” method as prescribed by Accounting Standard (AS-14), ‘Accounting for Amalgamations’.

In accordance with the said Scheme:

a) the assets, liabilities and reserves of POC have been taken over by the Company with effect from April 1, 2009 and have been recorded at their respective book values.

b) 12,01,200 Equity Shares of Rs. 10 each fully paid in POC held as an investment by the Company stands cancelled. The defcit of Rs. 4,02.57 Lacs between the net assets and reserves taken over from POC and the book value of investment held by the Company in POC have been adjusted to Capital Reserve by Rs. 2,51.46 Lacs and the balance defcit has been adjusted to General Reserve.

8. CC Healthcare Products Private Limited (“CCH”), a 100% Subsidiary of the Company, has initiated the process of fling a petition before the High Court of Judicature at Andhra Pradesh for amalgamation with the Company with effect from April 1, 2009.

9. In view of the Scheme of Amalgamation referred to in Note 13 above, the current year figures are not comparable with those of the previous year.

10. Refer Annexure for additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956.

11. Previous year’s figures have been re-grouped and re-arranged wherever necessary.

Find IFSC