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Colgate-Palmolive (India) Ltd.

BSE: 500830 Sector: Consumer
NSE: COLPAL ISIN Code: INE259A01022
BSE LIVE 19:40 | 19 Oct 1047.05 -6.25
(-0.59%)
OPEN

1059.50

HIGH

1060.00

LOW

1040.00

NSE 19:49 | 19 Oct 1046.90 -7.40
(-0.70%)
OPEN

1056.95

HIGH

1057.80

LOW

1040.00

OPEN 1059.50
PREVIOUS CLOSE 1053.30
VOLUME 5686
52-Week high 1175.50
52-Week low 861.90
P/E 48.75
Mkt Cap.(Rs cr) 28,480
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1059.50
CLOSE 1053.30
VOLUME 5686
52-Week high 1175.50
52-Week low 861.90
P/E 48.75
Mkt Cap.(Rs cr) 28,480
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Colgate-Palmolive (India) Ltd. (COLPAL) - Auditors Report

Company auditors report

To the Members of Colgate-Palmolive (India) Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying Ind AS financial statements of Colgate-Palmolive

(India) Limited ("the Company") which comprise the Balance Sheet as at March31 2017 the

Statement of Profit and Loss (including Other

Comprehensive Income) the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements to give a true and fair view of the financial positionfinancial performance (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the Companies (IndianAccounting

Standards) Rules 2015 (as amended) under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these Ind AS financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

5. We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Ind AS financial statements.

The procedures selected depend on the auditors' judgment including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the Ind AS financial statements that givea true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profit (including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.

Other Matter

9. The financial information of the Company for the year ended March 31 2016 and thetransition date opening balance sheet as at April 1 2015 included in these Ind ASfinancial statements are based on the previously issued statutory financial statementsfor the years ended March 31 2016 and March 31 2015 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were audited by us onwhich we expressed an unmodified opinion dated

May 24 2016 and May 19 2015 respectively.

The adjustments to those financial statements for the differences in accountingprinciples adopted by the Company on transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

11. As required by Section 143 (3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books.

(c) The Balance Sheet the Statement of Profitand Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us: i. The Company has disclosed the impact if any of pendinglitigations as at March 31 2017 on its financial position in its Ind AS financialstatements Refer Note 25 and Note 32; ii. The Company has long-term contracts as at March31 2017 for which there were no material foreseeable losses. The Company did not have anyderivative contracts as at March 31 2017; iii. Read with Note 23 of the Ind AS Financial

Statements there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended March 31 2017. iv. The Company has provided requisite disclosures in its Ind ASfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from November 8 2016 to December 30 2016 and based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced to us by the ManagementRefer Note 43.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Pradip Kanakia
Mumbai Partner
May 15 2017 Membership Number - 039985

Annexure A to Independent Auditors' Report

Referred to in paragraph 11(f) of the Independent Auditors' Report of even date to themembers of Colgate-Palmolive (India) Limited on the Ind AS financial statements for theyear ended March 31 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting ofColgate-Palmolive (India) Limited ("the Company") as of March 31 2017 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial controls over financial becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting reporting including criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

reporting For Price Waterhouse may
Firm Registration Number: 301112E
Chartered Accountants
Pradip Kanakia
Mumbai Partner
May 15 2017 Membership Number - 039985

Annexure B to Independent Auditors' Report

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of Colgate-Palmolive (India) Limited on the Ind AS financial statements for theyear ended March 31 2017 i. (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets. (b) The fixedassets are physically verified by the Management according to a phased programme designedto cover all the items over a period of three years which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogramme a portion of the fixed assets has been physically verified by the Managementduring the year and no material discrepancies have been noticed on such verification.

(c) The title deeds of immovable properties other than self-constructed properties asdisclosed in Note 3 on Property Plant and Equipment to the Ind AS financial statementsare held in the name of the Company except for the following leasehold properties: (1)Lease rights in respect of leasehold land at Sanand with gross carrying value of Rs.5262.04 Lacs and net book value of Rs. 5152.22 Lacs is yet pending execution with theconcerned authorities.

(2) Leasehold land at Sewri with gross and net book value of Nil where formal transferof lease rights in favour of the Company is pending.

(3) Lease rights in respect of one plot of leasehold land at Aurangabad with gross andnet book value of Rs. 5.59 Lacs is yet pending execution with the concerned authorities(Refer Note 15 - Other Current Assets to the Ind AS financial statements). ii. Thephysical verification of inventory including stocks with third parties have beenconducted at reasonable intervals by Management during the year. In respect of inventorylying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material. iii. The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act. Therefore the provisions of Clause 3(iii)

(a) (iii)(b) and (iii)(c) of the said Order are not applicable to the Company. iv. Inour opinion and according to the information and explanations given to us the Companyhas not granted any loans or provided any guarantees or security to the parties coveredunder Section 185. Further the Company has complied with the provisions of Section 186 ofthe Companies Act 2013 in respect of the loans and investments made and guarantees andsecurity provided by it. v. The Company has not accepted any deposits from the publicwithin the meaning of Sections 73 74 75 and 76 of the Act and the rules framedthereunder to the extent notified. vi. The Central Government of India has not specifiedthe maintenance of cost records under subsection (1) of Section 148 of the Act for any ofthe products of the Company. vii. (a) According to the information and explanations givento us and the records of the Company examined by us in our opinion the Company isregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable with the appropriateauthorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of duty of custom which have not been depositedon account of any dispute. The particulars of dues of income tax sales tax service taxduty of excise and value added tax as at March 31 2017 which have not been deposited onaccount of a dispute are as follows:

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of Colgate-Palmolive (India) Limited on the Ind AS financial statements for theyear ended March 31 2017

S r . No. Name of the Statute Nature of the Dues and period to which the amount relates Amount # (Rs. Lacs) Forum where dispute is pending
1 Income Tax
The Income Tax Act 1961 Income tax liability for the Financial Years 2005-2006 and 2006-2007. Income tax liability for the Financial Years 2008-2009 2010-2011 and 2011-2012. 233.59 12261.64 First Appellate Authorities Income Tax Appellate Tribunal
Income tax liability for the Financial Years 1995-1996 to 1999-2000 and 2003-2004. ** The matter was decided in favour of the Company but department has preferred appeal at higher level. **1335.86 High Court
Total 13831.09
2 Sales Tax
As per the Statutes applicable in the following states New Delhi Maharashtra Madhya Pradesh Bihar Orissa Kerala Andhra Pradesh West Bengal Uttar Pradesh Gujarat Assam Tripura Rajasthan Jharkhand Karnataka and Goa Sales tax liability for the Financial Years 1995-1996 1998-1999 2000-2001 to 2014-2015. 915.58 Assessing Authorities and First Appellate Authorities of various states Sales tax Appellate Tribunal of various states.
Sales tax liability for the Financial Years 1987-1988 to 1988-1989 1990-1991 1995-96 to 1997-1998 1999-2000 to 2001-2002 2003-2004 2011-2012 and 2013-2014. 352.33
Sales tax liability for the Financial Years 1993-1994 and 2004-2005. 51.86 High Court
Total 1319.77
3 Service Tax
The Finance Act 1994 Service tax liability for the Financial Years 2002-2003 2004-2005 to 2009-2010. 71.00 First Appellate Authorities
Service tax liability for the Financial Years 1997-1998 to 2000-2001 2007-2008 and 2008-2009. 72.84 Customs Excise and Service Tax Appellate Tribunal
Service tax liability for the Financial Years 1997-1998 to 2000-2001 2005-2006 and 2006-2007. 939.73 High Court
Total 1083.57
4 Excise Duty
The Central Excise Act 1944 Excise duty liability for the Financial Years 1994-1995 and 2000-2001 to 2010-2011. 994.66 Customs Excise and Service Tax Appellate Tribunal
Excise duty liability for the Financial Years 1998-1999 to 1999-2000 2001-2002 to 2004-2005 2009-2010 2011-2012 to 2014-2015 February 2015 to October 2015 and November 2015 to August 2016. 764.37 First Appellate Authorities
Total 1759.03

# Net of amounts paid under Protest.

viii. As the Company does not have any loans or borrowings from any financialinstitution or bank or government nor has it issued any debentures as at the balance sheetdate the provisions of

Clause 3(viii) of the Order are not applicable to the Company. ix. The Company has notraised any moneys by way of initial public offer further public offer (including debtinstruments) and term loans. Accordingly the provisions of Clause 3(ix) of the Order arenot applicable to the Company. x. During the course of our examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the Management. xi. The Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act. xii. As the Company is not a Nidhi Companyand the Nidhi Rules 2014 are not applicable to it the provisions of Clause 3(xii) of theOrder are not applicable to the Company. xiii. The Company has entered into transactionswith related parties in compliance with the provisions of

Sections 177 and 188 of the Act. The details of such related party transactions havebeen disclosed in the Ind AS financial statements as required under Ind AS 24 RelatedParty Disclosures specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. xiv. The Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of Clause 3(xiv) of the Order are not applicableto the Company. xv. The Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the provisions of Clause 3(xv) ofthe Order are not applicable to the Company. xvi. The Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly theprovisions of Clause 3(xvi) of the Order are not applicable to the Company.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Pradip Kanakia
Mumbai Partner
May 15 2017 Membership Number - 039985