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

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.

 
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