Provisions

The Company recognizes a provision when there is
a present legal or constructive obligation as a
result of a past event that probably requires an
outflow of resources and a reliable estimate can be
made of the amount of the obligation.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognized as an interest expense.

Contingent Liability

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may but probably will not, require an outflow
of resources. Where there is a possible obligation or
a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is
made.

(m) Revenue from Operations

i. Sale of Goods

The Company's revenue contracts represent a
single performance obligation to sell its products to
trade customers. Sales are recorded at the time
control of the products is transferred to trade
customers, in an amount that reflects the
consideration the Company expects to be entitled
to in exchange for the products. Control is the
ability of trade customers to direct the use of and
obtain the benefit from our products. In evaluating
the timing of the transfer of control of products to
trade customers, the Company considers transfer of
significant risks and rewards of products and the
probability of flowing of future economic benefit
to the Entity as per the terms of the Contract which
usually coincide with the delivery of the goods.

Revenue is measured on the basis of contracted
price and reduced by variable consideration. Variable
consideration includes sales returns, trade discounts,
volume based incentives, and cost of promotional
programs, indirect taxes as may be applicable.

The Company provides volume based incentives to
certain customers once the quantity of products
purchased during the period exceeds a threshold
specified in the contract. Incentives are offset
against amounts payable by the customer. To
estimate & recognize a liability for the incentives,
the Company applies methods which best predicts
the amount of incentive and is primarily driven by
the number of volume thresholds contained in the
contract. The volume incentive is estimated at
contract inception and recognized when it is highly
probable that significant revenue reversal will not
occur.

Company's contracts with trade customers do not
have significant financing components or non-cash
consideration and the Company does not have

unbilled revenue or significant amounts of
prepayments from customers.

The company pays sales commission to its
employees for contract that they obtain for sales of
goods and immediately expensed out sales
commissions (included under employee benefits).

Contract Balances

Contract Liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognized when the payment is
made or the payment is due (whichever is earlier).
Contract liabilities are recognized as revenue when
the Company performs its obligation to transfer
goods or services under the contract.

ii. Service Income

Service Income is recognized on cost plus basis as
per the terms of the contract with customers, as
and when the service is performed.

iii. Interest Income

Interest income from debt instruments is recognized
using the effective interest rate method. The effective
interest rate is the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial asset to the gross carrying amount
of a financial asset. When calculating the effective
interest rate, the Company estimates the expected
cash flows by considering all the contractual terms of
the financial instrument but does not consider the
expected credit losses.

iv. Rental Income

Rental income from operating leases where the
Company is a lessor is recognized in income on a
straight-line basis over the lease term unless the
receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet
based on their nature.

v. Government Grant

Government grants are recognized where there is
reasonable assurance that the grant will be received,
and all attached conditions will be complied with.
When the grant relates to an expense item, it is
recognized as income on a systematic basis over the
periods that the related costs, for which it is intended
to compensate, are expensed. Ind AS 20 permits the
grant to be recognized in profit or loss. The Company
has chosen to present grants related to an expense
item as other operating income in the statement of
profit and loss.

(n) Employee Benefits

i. Short Term Employee Benefits

Liabilities for salaries, wages and performance
incentives including non-monetary benefits that are
expected to be settled wholly within twelve months
after the end of the period in which the employees
render the related service are recognized in respect
of employees services up to the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current employee
benefits obligations in the Balance Sheet.

ii. Long Term Employee Benefits

• Defined Contribution Plans

Provident Fund, Superannuation Fund and
Employee's State Insurance:

The Company has Defined Contribution Plans
for its employees such as Provident Fund,
Superannuation Fund, Employee's State Insurance
etc. and contribution to these plans are charged
to the Statement of Profit and Loss as incurred,
as the Company has no further obligation
beyond making the contributions.

• Defined Benefit Plans

Gratuity:

The Company provides for gratuity, a defined
benefit plan (the "Gratuity Plan") covering eligible
employees in accordance with the Payment of
Gratuity Act, 1972. The Gratuity Plan provides a
lump sum payment to vested employees at
retirement, death, incapacitation or termination
of employment, of an amount based on the
respective employee's salary and the tenure of

employment. The Company's liability is
actuarially determined (using the Projected Unit
Credit method) at the end of each year. The
benefits are discounted using the market yields
at the end of the reporting period that have
terms approximating to the terms of the related
obligation. Remeasurement gains and losses
arising from experience adjustments and
changes in actuarial assumptions are recognized
in the period in which they occur directly in other
comprehensive income. They are included in
retained earnings in the Statement of changes in
Equity and in the Balance Sheet. Changes in the
present value of the defined benefit obligation
resulting from plan amendments or curtailments
are recognized immediately in the Statement
of profit and loss as past service cost.
Remeasurements are not reclassified to Profit or
Loss in subsequent periods.

The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair value of
plan assets. This cost is included in employee
benefit expense in the Statement of Profit and
Loss.

Provident Fund:

In respect of certain employees, Provident Fund
contributions are made to a Trust administered
by the Company. The interest rate payable by
the trust to the beneficiaries every year is
notified by the Government. The Company has
an obligation to make good the shortfall, if any,
between the return from the investment of the
trust and interest as per the notified rate. The
Company's liability is actuarially determined
(using the Projected Unit Credit Method) at the
end of the year. Measurement gains and losses
arising from experience adjustments and
changes in actuarial assumptions are recognized
in the period in which they occur directly in
other comprehensive income. They are included
in retained earnings in the Statement of changes
in Equity and in the Balance Sheet. Changes in
the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognized immediately in the
Statement of profit and loss as past service cost.
Remeasurements are not reclassified to Profit or
Loss in subsequent periods.

Compensated Absences:

Accumulated compensated absences, which are
expected to be availed or encashed within 12
months from the end of the year and are treated
as short term employee benefits. The obligation
towards the same is measured at the expected
cost of accumulating compensated absences as
the additional amount expected to be paid as a
result of the unused entitlement as at the year
end.

Accumulated compensated absences, which
are expected to be availed or encashed beyond
12 months from the end of the year end are
treated as other long term employee benefits.
The Company's liability is actuarially determined
(using the Projected Unit Credit method) at the
end of each year. Actuarial losses/gains are
recognized in the Statement of Profit and Loss
in the year in which they arise.

Voluntary Retirement Scheme:

Expenditure on voluntary retirement scheme is
charged to the Statement of Profit and Loss in
the year in which incurred.

Share Based Payments

The Company does not provide any equity-
based compensation to its employees. However,
the parent Company, Colgate Palmolive
Company, U.S.A. ("the grantor") maintains equity
incentive plans that provide for the grant of
stock-based awards to its executive directors and
certain categories of officers and employees. The
2009 Executive Incentive Compensation Plan and
2013 Incentive Compensation Plan ("Incentive
Plan") provides for the grant of non-qualified and
incentive stock options, as well as restricted stock
units which are together referred to as employee
stock options. Exercise prices in the case of non¬
qualified and incentive stock options are not less
than the fair value of the underlying common
stock of the grantor on the date of grant.

A stock option gives an employee, the right to
purchase shares of Colgate Palmolive Company
common stock at a fixed price for a specific
period of time. Stock options generally have a
term of six years and vest over three years.

A restricted stock unit (RSU) provides an
employee with a share of Colgate Palmolive
Company common stock upon vesting. Restricted
stock units vest in annual installments generally
over a period of three years. Dividends will accrue
with each restricted stock unit award granted
subsequent to grant date.

Employee Stock Options (ESOPs') issued by the
parent entity are accounted for as equity-settled
as the Company has no obligation to settle the
share-based payment transaction and also the
shares are of parent Company.

Company recognizes the expense over the
vesting period, which is the period over which all
of the specified vesting conditions are to be
satisfied, as determined on the grant date,
based on the fair value of the options/RSUs. At
the end of each period, the entity revises its
estimates of the number of options that are
expected to vest based on the non-market
vesting and service conditions. It recognizes the
impact of the revision to original estimates, if
any, in the Statement of Profit and Loss, with a
corresponding adjustment to equity.

In case where there is a clear link between the
recharge from the parent company and the
expense, Company accounts for the recharge
as capital distribution even if the amount of
recharge is more than the expense recognized
over the vesting period (as the recharge is
based on the intrinsic value).

In case where the employee has not served the
Company during the vesting period and for
which they get the debit note from parent, the
cost is debited to management recharge
expense.

Further, where the management recharge is not
expected from the parent entity as the
employee has been relocated to another group
company i.e. the employee is not expected to
render future services to the Company at the
time of exercise of option, the Company
transfers the proportionate amount of share
options outstanding account related to such
employees to Retained Earnings, after taking
into consideration the probability of employees
re-locating back to the Company.

(o) Income Tax

Tax expense for the period, comprising current tax
and deferred tax, are included in the determination
of the net profit or loss for the period. Current tax is
measured at the amount expected to be paid to
the tax authorities in accordance with prevailing
income tax law. Management periodically evaluates
positions taken in the tax returns with respect to
situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate.

The Company evaluates whether it has any uncertain
tax positions which requires adjustments to provision
for current tax. The Company has ongoing disputes
with Income Tax Authorities on various matters. In
respect of certain allowance/deductions, it is
probable that such positions will not be accepted by
Tax authorities and hence the same has been
considered and adequately provided for while
calculating current tax provision of the respective
years. In respect of certain allowances/ deductions
taken by the Company, it is probable that such
disputes will be accepted by Tax authorities and
hence the same have been considered and disclosed
as a part of Contingent Liability.

• Current Tax

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right to
set off the recognized amounts and there is an
intention to settle the asset and the liability on a
net basis.

• Deferred Tax

Deferred tax is recognized for all the deductible
temporary differences by using the liability
method, only to the extent that there is a
reasonable certainty that sufficient future taxable
income will be available against which such
deferred tax assets can be realized. Deferred tax
assets and liabilities are measured using the tax
rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date.
At each Balance Sheet date, the Company
reassesses unrecognized deferred tax assets, if
any.

Deferred tax relating to items recognized outside

profit or loss is recognized either in other
comprehensive income or in equity. Deferred
tax items are recognized in correlation to the
underlying transaction either in OCI or directly
in equity. Unrecognized deferred tax assets are
re-assessed at each reporting date and are
recognized to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.

Deferred tax assets and deferred tax liabilities are
offset when there is a legally enforceable right to
set off assets against liabilities representing
current tax and where the deferred tax assets and
deferred tax liabilities relate to taxes on income
levied by the same governing taxation laws.

(p) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker ("CODM"). The
CODM, who is responsible for allocating resources
and assessing performance of the operating
segments, has been identified as the Managing
Director and Chief Financial Officer of the Company.
The Company has identified 'Personal Care
(including Oral Care)' as its only primary reportable
segment, which primarily includes products such as
Soaps, Cosmetics and Toilet Preparations.

(q) Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.

(r) Offsetting Financial Instruments

Financial assets and liabilities are offset and the net
amount reported in the balance sheet when there is
a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a net
basis, or realize the asset and settle the liability
simultaneously.

(s) Contributed Equity

Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net
of tax.

(t) Earnings Per Share

i. Basic Earnings Per Share

Basic earnings per share are calculated by dividing:

• the profit attributable to owners of the Company

• By the weighted average number of equity shares
outstanding during the Financial Year.

ii. Diluted Earnings Per Share

Diluted earnings per share adjust the figures used in
the determination of basic earnings per share to
take into account:

• the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

• The weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2. Critical Accounting Estimates and Judgments

The preparation of financial statements requires the
use of accounting estimates which, by definition, will
seldom equal the actual results. This note provides an
overview of the areas that involved a higher degree
of judgment or complexity, and of items which are
more likely to be materially adjusted due to estimates
and assumptions turning out to be different than
those originally assessed. Detailed information about
each of these estimates and judgments is included in
relevant notes.

The areas involving critical estimates or judgments
are:

- Estimation of defined benefit obligation (Refer
Note 1B(n) and Note 28)

- Estimation of Useful life of Property, plant and
equipment and intangibles (Refer Note 1B(c) and
Note 3)

- Estimation of taxes (Refer Note 1B(o), Note 19 and
31)

- Estimation of impairment of trade receivables
(Refer Note 1B(i) and Note 8)

- Estimation of provision and contingent liabilities
(Refer Note 1B(l)(iv), Note 24 and 32)

- Estimation of Share based payments to
employees (Refer Note 1B(n) and Note 38)

- Estimation of variable consideration in respect of
revenue recognition (Refer Note 1B(m) and Note
25)

Estimates and judgments are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.

3. Standards Notified but not yet Effective

There are no standards that are notified and not yet
effective as on the date.

(i) Buildings include : (a) Research Centre at Powai, Mumbai, (b) Factory Building at Baddi, (c) Factory Buildings at Goa, (d) Factory Buildings at Sanand and (e)
Factory Building at Sricity.

(ii) Refer to Note 34 for disclosures of capital commitments for the acquisition of property, plant and equipment.

(iii) Buildings include investment property with net carrying value of H 164 Lakhs (March 31, 2024 : H 176 Lakhs) and fair value of H 3,544 Lakhs (March 31, 2024:
H 3,434 Lakhs). Fair value is determined based on an annual evaluation performed by an accredited external independent valuer using the sales comparison
method of valuation under market approach in which due weightages have been given to factors such as right to sell/transfer the property, demand and
prospective buyers for such type of commercial offices etc. The significant unobservable inputs considered includes total of Weighted reconciliation is
H 22,500/- per square feet (March 31, 2024: H 21,800/-). The rental income and depreciation expense for the year ended March 31, 2025 are H 266 Lakhs
(March 31, 2024 : H 259 Lakhs) and H 13 lakhs (March 31, 2024 : H 13 Lakhs) respectively. (Refer Note 16).

The effective interest rate for lease liabilities is 7.40% p.a. to 8.40% p.a., with maturity between 2025-2033.

The Company had total cash outflows for leases of H 1,750 lakhs for the year ended March 31, 2025 and H 1,899 lakhs for
the year ended March 2024.

The maturity analysis of lease liabilities are disclosed in Note 40.

As a Lessor

The Company has given office premise space under non-cancellable operating lease for a period of 1 year ended May 31,
2024. The rental income from the asset given on lease of H 266 Lakhs (March 31, 2024 : H 259 Lakhs) has been disclosed
as "Lease Rentals" under Other Income in Note 26 to the Statement of Profit and Loss.

Description of significant operating lease arrangements in respect of premises:

- The Company has taken refundable interest free security deposit under the lease agreements.

- Agreement contain provision for renewal at the option of either party.

- Agreement provide for restriction on sub lease.

Note 25: Revenue from Operations (contd.)

Performance Obligation

The Company’s revenue contracts represent a single performance obligation to sell its products to trade customers. Sales
are recorded at contracted price at the time control of the products is transferred to trade customers, in an amount that
reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of
trade customers to direct the use of and obtain the benefit from our products. In evaluating the timing of the transfer of
control of products to trade customers, the Company considers transfer of significant risks and rewards of products and
the probability of flowing of future economic benefit to the entity as per the terms of the Contract which usually co-incide
with the delivery of the goods. The performance obligation for service Income is satisfied as and when the service is
performed.

The payment terms include advance payment and credit given to certain customers.

The nature of goods includes personal care (including oral care) and Research and Development service income.

Variable Consideration

Variable consideration includes sales returns, trade discounts, volume based incentives, and cost of promotional programs,
indirect taxes as may be applicable.

B) Balance Sheet Amounts

i) Balance sheet amounts- Gratuity

The Company provides for gratuity for employees as per the Company policy. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. The amount of Gratuity is payable on retirement/
termination of the employee's based on last drawn basic salary per month multiplied for the number of
years of service. The Company has established ‘Colgate-Palmolive India Gratuity Fund for Workmen’ and
‘Colgate-Palmolive India Gratuity Fund for Non-Workmen’ to which the Company makes contribution.

Note 28: Employee Benefits Expense (contd.)

ii) Balance Sheet Amounts- Provident Fund

The Company has established ‘Colgate-Palmolive (India) Limited Provident Fund’ in respect of certain
employees to which both the employee and the employer make contribution. Such contribution to the
provident fund for all employees, are charged to the Statement of Profit and Loss. In case of any liability
arising due to shortfall between the return from its investments and the guaranteed specified interest rate,
the same is provided for by the Company. The actuary has provided an actuarial valuation and the interest
shortfall liability if any has been provided in the books of accounts after considering the assets available with
the Company's Provident Fund Trust. The guaranteed rate of return (p.a) is 8.25% ( March 31, 2024 - 8.25%).

D) Projected Plan Cash flow:

The expected contribution payable to the Gratuity plan for the next year is H 1,530 Lakhs. The expected
contribution payable to the Provident Fund plan for the next year is H 1,533 lakhs.

The weighted average duration to the payment of these cash flows for Gratuity is 10.89 years (March 31,
2024: 10.88 years). The weighted average duration to the payment is for Provident Fund plan is 12.37 years
(March 31, 2024 : 12.42 years)

Note 32: Contingent Liabilities (contd.)

refunds based on these ITAT orders for such years, along with interest on the income tax refund amounting to H 6,478 lakhs,
which has been recognized as income in the current year. Further, the income tax department has preferred appeal with
the high court for certain years which are yet to be admitted in the High Court.

Note 33: Demand Notices in Relation to Leased Property

As at March 31, 2025, the Company has outstanding demand from Bombay Port Trust (BPT) for H 13,914 Lakhs due to
increased rentals on the three leased properties (Leased Plots), applied retrospectively from October 1, 2012 till November
30, 2024. The Company filed a writ petition against BPT to request acceptance of the surrender of Leased Plots. BPT
accepted the surrender for two of the plots, however did not accept the surrender of one plot which has been brought to
the attention of the Hon'ble High Court. The surrender of the third plot and demand notices issued in respect of the Leased
Plots until year ended March 31, 2025 are currently part of ongoing litigation before the Hon'ble Mumbai High Court.

Note 35: Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Managing Director and Chief Financial Officer of the
Company. The Company operates only in one Business Segment i.e. ‘Personal Care (including Oral Care)' which primarily
includes products such as Soaps, Cosmetics and Toilet Preparations and the activities incidental thereto within India, hence
does not have any reportable Segments as per Ind AS 108 "Operating Segments". The performance of the Company is
mainly driven by sales made locally and hence, no separate geographical segment is identified.

Terms and conditions:

Transactions relating to dividends and bonus shares were on the same terms and conditions that apply to other
shareholders.

Goods and Services procured or provided from/ to related parties are generally priced at arm’s length. Other
reimbursement of expenses to/ from related parties is on Cost basis.

All other transactions were made on normal commercial terms and conditions and at market rates.

All outstanding balances are unsecured and are repayable/ receivable in cash.

Note 38: Share Based Payments

(a) Employee Option Plan

The Company does not provide any equity-based compensation to its employees. However, the parent company,
Colgate-Palmolive Company, U.S.A. ("the grantor") maintains equity incentive plans that provide for the grant of stock-
based awards to its executive directors and certain categories of officers and employees. The Parent's Incentive Plan
provides for the grant of non-qualified and incentive stock options, as well as restricted stock units. Exercise prices in
the case of non-qualified and incentive stock options are not less than the fair value of the underlying common stock
on the date of grant.

A stock option gives an employee, the right to purchase shares of Colgate-Palmolive Company common stock at a
fixed price for a specific period of time. Stock options generally have a term of six years from the date of grant and
vest over a period of three years.

A restricted stock unit provides an employee with a share of Colgate-Palmolive Company common stock upon vesting.
Restricted stock units vest generally over a period of three years. Dividends will accrue with each restricted stock unit
award granted subsequent to the grant date.

Fair Value of options granted

The fair value at the grant date of options granted during the year ended March 31, 2025 was H 1,896 per option
(March 31, 2024 : H 1,225 per option). The fair value at grant date is determined using the Black-Scholes Model which
takes into account the exercise price, expected volatility, option's life, the share price at grant date, expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

Fair Value of options granted (contd.)

The risk free interest rates are determined based on the zero-coupon sovereign bond yields with maturity equal to the
expected term of the option. The expected volatility was determined based on the volatility of the equity share for the
period of one year prior to issue of the option. Volatility calculation is based on historical stock prices using standard
deviation of daily change in stock price. The historical period is taken into account to match the expected life of the
option. Dividend yield has been calculated taking into account expected rate of dividend on equity share price as on
grant date.

Note 39: Fair Value Measurements

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument:
Level 1 : Quoted prices for identical instruments in active market.

Level 2 : Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3 : Inputs which are not based on observable market data.

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

Current financial asset and current financial liabilities have fair values that approximate to their carrying amounts due
to their short-term nature. Non current financial assets and non current financial liabilities have fair values that
approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows.

Note 40: Financial Risk Management

Inherent to the nature of the Company's business are a variety of financial risks, namely liquidity risk, market risk and credit
risk. Developing policies and processes to assess, monitor, manage and address these risks is the responsibility of the
Company's Management. The Risk Management Committee oversees this risk management framework in the Company
and intervenes as necessary to ensure there exists an appropriate level of safeguards against the key risks. Updates on
compliance, exceptions and mitigating action are placed before the Audit Committee periodically. Risk management

policies and systems are reviewed regularly to reflect changes like major changes in ERP systems or go to market model,
changes in organization structure, events denoting material change in the risk environment, etc.

The Company's Management works closely with its Treasury department and Internal Audit department to ensure there are
appropriate policies and procedures governing the operations of the Company with a view to providing assurance that
there is visibility into financial risks and that the business is being run in conformity with the stated risk objectives. Periodic
reviews with concerned stakeholders provides an insight into risks to the business associated with currency movements,
credit risks, commodity price fluctuations, etc. and necessary deliberations are undertaken to ensure there is an appropriate
response to the developments.

A MANAGEMENT OF LIQUIDITY RISK

The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable
growth, efficient working capital management as well as prudent capital expenditure and dividend policies. The
Company has a overdraft facility with banks to support any temporary funding requirements. The Company is cognizant
of reputational risks that are associated with the liquidity risk and the risk is factored into the overall business strategy.

The Company's treasury department regularly monitors the rolling forecasts to ensure it has sufficient cash on an on¬
going basis to meet operational needs. Any short term surplus cash generated by the operating entities, over and above
the amount required for working capital management and other operational requirements, is retained as cash and cash
equivalents (to the extent required) and any excess is invested in interest bearing term deposits and debt investments
with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its
liabilities.

C MANAGEMENT OF CREDIT RISK

Credit risk is the risk of financial loss to the Company if a customer or other counter-party fails to meet its contractual
obligations.

Trade Receivables

Trade receivables are subject to credit limits, controls and approval processes. A majority of customers pay prior to
shipment, thereby reducing exposure to trade receivables significantly. Due to a large customer base, the Company is
not exposed to material concentration of credit risk. Basis the historical experience supported by the level of default,
the credit risk in case of trade receivable is low and so trade receivables are considered to be a single class of financial
assets. (Refer Accounting Policy 1 B (i) on trade receivables.)

The gross carrying amount of trade receivables is H 23,474 Lakhs as at March 31, 2025 and H 17,335 Lakhs as at
March 31, 2024.

Other Financial Assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in debt
instruments. The Company concentrates its major investment activities with a limited number of counter-parties which
have secure credit ratings, to reduce this risk. Individual risk limits are set for each counter-party based on financial
position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the
Company's Treasury department.

Note 41: Capital Management

The Company's objective in managing its capital is to safeguard its ability to continue as a going concern and to optimise
returns to our shareholders. The Company considers the following components of its Balance Sheet to be managed capital:

1) Share Capital, 2) Securities Premium and 3) Other Reserves comprising of General Reserve and Retained Earnings.

The Company's capital structure is based on the Managements assessment of the balances of key elements to ensure
strategic decisions and day to day activities. The capital structure of the Company is managed with a view of the overall
macro economic conditions and the risk characteristics of the underlying assets.

The Company’s policy is to maintain a strong capital structure with a focus to mitigate all existing and potential risks to the
Company, maintain shareholder, vendor and market confidence and sustain continuous growth and development of the
Company.

The Company's focus is on keeping a strong total equity base to ensure independence, security, as well as high financial
flexibility without impacting the risk profile of the Company.

In order, to maintain or adjust the capital structure, the Company will take appropriate steps as may be necessary. The
Company does not have any debt or financial covenants.

Note 45: Other Statutory Information

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act,1961).

(iii) The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

(iv) The Company has not traded, nor invested in any Crypto currency or virtual currency during the period ended March
31, 2025.

(v) During the period, the Company has not advanced or given any loan or invested funds to any other persons or entities,
including foreign entities (Intermediaries) with the understanding that Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) During the period, the Company has not received any fund from any persons or entities, including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has maintained daily back of up of books of accounts on servers physically located in India.

(viii) The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the software. Further no instance of audit trail feature being tampered with was noted in respect of the software.
Further, the Company has preserved audit trail for prior years to the extent it was enabled.

Note 46: Subsequent to year end, the Company has declared a Second Interim dividend of H 27/- per share aggregating
to H 73,436 Lakhs on May 21, 2025 for FY 2024-25 which will be paid on and from June 16, 2025.

Note 47: Exceptional Item in the previous year ended March 31, 2024 includes severance and related expenses of
H 1,950 Lakhs with respect to certain organisation structure changes.

Signature to Notes 1 to 47 are an integral part of these financial statements

As per our report of even date. For and on behalf of the Board of Directors of Colgate-Palmolive (India) Limited

For S R B C & CO LLP M. S. Jacob Prabha Narasimhan

Chartered Accountants Whole-time Director & Managing Director &

Firm Registration No. 324982E/E300003 Chief Financial Officer Chief Executive Officer

(DIN : 07645510) (DIN : 08822860)

per Pritesh Maheshwari Surender Sharma

Partner Whole-time Director - Legal

Membership Number - 118746 & Company Secretary

(F-8913)

(DIN : 02731373)

Place : Mumbai Place : Mumbai

Date : May 21, 2025 Date : May 21, 2025