BSE Prices delayed by 5 minutes... << Prices as on Jan 21, 2019 - 9:33AM >>   ABB 1299.75 [ 1.89 ]ACC 1436.85 [ -0.22 ]AMBUJA CEM 212.7 [ -0.09 ]ASIAN PAINTS 1405.5 [ 0.30 ]AXIS BANK 658.15 [ -0.93 ]BAJAJ AUTO 2698.8 [ -0.65 ]BANKOFBARODA 117.5 [ -0.38 ]BHARTI AIRTE 313.9 [ 0.95 ]BHEL 71.3 [ 0.85 ]BPCL 351.5 [ -0.57 ]BRITANIAINDS 3175.05 [ 0.37 ]CAIRN INDIA 285.4 [ 0.90 ]CIPLA 512.5 [ 0.55 ]COAL INDIA 229.7 [ -0.13 ]COLGATEPALMO 1316.5 [ 0.52 ]DABUR INDIA 426.6 [ 0.60 ]DLF 181.1 [ 0.44 ]DRREDDYSLAB 2611.1 [ 0.47 ]GAIL 323.2 [ 0.02 ]GRASIM INDS 817 [ -0.85 ]HCLTECHNOLOG 968.6 [ 0.43 ]HDFC 1986.2 [ -1.09 ]HDFC BANK 2130.55 [ -0.03 ]HEROMOTOCORP 2873.65 [ -0.67 ]HIND.UNILEV 1750.5 [ 0.39 ]HINDALCO 207.7 [ -0.50 ]ICICI BANK 373 [ 0.30 ]IDFC 43 [ -0.35 ]INDIANHOTELS 136.95 [ 0.15 ]INDUSINDBANK 1509.05 [ -0.47 ]INFOSYS 743.75 [ 1.74 ]ITC LTD 291.45 [ 0.12 ]JINDALSTLPOW 145.6 [ -0.07 ]KOTAK BANK 1228.8 [ -0.69 ]L&T 1291.5 [ -2.03 ]LUPIN 867.8 [ 0.95 ]MAH&MAH 734.7 [ 0.01 ]MARUTI SUZUK 7346.75 [ -0.09 ]MTNL 15.2 [ 2.01 ]NESTLE 11254.55 [ 0.12 ]NIIT 91 [ 0.00 ]NMDC 90.6 [ -0.11 ]NTPC 145 [ 0.45 ]ONGC 145.8 [ -0.31 ]PNB 82.55 [ -0.36 ]POWER GRID 192.5 [ -0.39 ]RIL 1208.05 [ 2.12 ]SBI 294.7 [ -0.17 ]SESA GOA 198.5 [ 0.18 ]SHIPPINGCORP 44.6 [ 0.00 ]SUNPHRMINDS 399.35 [ 2.20 ]TATA CHEM 691.45 [ -0.19 ]TATA GLOBAL 215.75 [ -0.09 ]TATA MOTORS 184.2 [ 0.60 ]TATA STEEL 471 [ 0.11 ]TATAPOWERCOM 75.7 [ -0.39 ]TCS 1911 [ 0.56 ]TECH MAHINDR 713.8 [ 0.86 ]ULTRATECHCEM 3812 [ -0.22 ]UNITED SPIRI 588.35 [ 0.64 ]WIPRO 337.85 [ -2.41 ]ZEETELEFILMS 441.45 [ 0.30 ] BSE NSE
You can view the entire text of Notes to accounts of the company for the latest year

BSE: 500830ISIN: INE259A01022INDUSTRY: Personal Care

BSE   ` 1316.50   Open: 1328.00   Today's Range 1271.05
+6.80 (+ 0.52 %) Prev Close: 1309.70 52 Week Range 1020.10
Year End :2018-03 

IA. Background:

Colgate-Palmolive (India) Limited is a subsidiary of Colgate-Palmolive, USA and a listed Company in India. The Company was incorporated on September 23, 1937 under the provisions of The Companies Act. The registered office of the company is located at Colgate Research Center, Main street, Hiranandani Gardens, Powai, Mumbai - 400076. Its shares are listed on two recognised stock exchanges in India. The Company is engaged in manufacturing/trading of toothpaste, tooth powder, toothbrush, mouth wash and personal care products. These financial statements for the year ended March 31, 2018 were approved by the Board of Directors on May 21, 2018.

2. Critical accounting estimates and judgments

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

The areas involving critical estimates or judgments are:

- Estimation of defined benefit obligation (Note 28)

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

- Estimation of taxes (Note 19 and 30)

- Estimation of impairment of trade receivables (Note 9)

- Estimation of provision and contingent liabilities (Note 24 and 31)

- Estimation of Share based payments to employees (Note 36)

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

Standards issued but not yet effective Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued on March 29, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after April 1, 2018. The Company plans to adopt the new standard on the required effective date using the modified retrospective method.

During 2017 - 18, the Company performed a detailed assessment of Ind AS 115 to determine the impact in its financial statement. The new standard is not expected to have a material impact on the amount or timing of recognition of reported revenue.

The presentation and disclosure requirements in Ind AS 115 are more detailed than under current Ind AS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Company’s financial statements. The Company is currently evaluating the requirements of these disclosures in its financial statements.

Amendments to Ind AS 112 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in Ind AS 112

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.

The amendment does not impact the financial statements of the Company.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact. These amendments are effective for annual periods beginning on or after April 1, 2018.

The amendment does not impact the financial statements of the company.

Transfers of Investment Property - Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.

The amendments are effective for annual periods beginning on or after April 1, 2018.

The amendment is not expected to have a material impact on the Company’s Financial Statement.

Ind AS 28 Investments in Associates and Joint Ventures - Clarification that measuring investees at fair value through profit or loss is an investment- by- investment choice

The amendments clarify that:

- An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss

- If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent.

The amendments should be applied retrospectively and are effective from April 1,2018.

The amendment does not impact the financial statements of the company.

Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the nonmonetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:

(i) The beginning of the reporting period in which the entity first applies the Appendix, or

(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.

The Appendix is effective for annual periods beginning on or after April 1, 2018.

The amendment is not expected to have a material impact on the Company’s Financial Statement.

(i) Land - Leasehold includes lease rights in respect of the land in the possession of the Company under Lease with Industrial Area Development Agency at Baddi, Goa Industrial Development Corporation at Goa and Sri city (P) Limited at Sricity, Andhra Pradesh, Gujarat Industrial Development Corporation (GIDC) at Sanand.

(ii) Buildings include : (a) Factory Building at Sewri and leasehold rights in the land on which the building stands. While the ownership of the Factory Building is in the name of the Company, the Mumbai Port Trust (MPT) has not yet effected formal transfer of lease rights in the said land, in favour of the Company. As regards the plot of land adjoining the factory building, MPT has revoked its offer of assignment. The Company has made a representation to MPT in this respect and the matter is pending. The stamp duty and legal costs for such transfer will be capitalised when paid, (b) Research Centre at Powai, Mumbai, (c) Factory Building at Baddi, (d) Factory Buildings at Goa, (e) Factory Buildings at Sanand and (f) Factory Building at Sricity.

(iii) Refer to Note 32(A) for disclosures of contractual commitments for the acquisition of property, plant and equipment.

(iv) Buildings include investment property with net carrying value of Rs. 2,51.82 Lacs (March 31, 2017 : Rs. 2,64.38 Lacs) and fair value of Rs. 34,00 Lacs (March 31, 2017 : Rs. 33,60 Lacs). Fair value is determined based on an annual evaluation performed by an accredited external independent valuer using discounted cashflow method.The significant unobervable inputs considered includes estimated rental value per sq. per month Rs. 110/- to Rs. 140/-, growth rate p.a 5%, discount rate 12%. The rental income and depreciation expense for the year ended March 31, 2018 are Rs. 1,96.88 Lacs and Rs. 12.56 lacs respectively. (Refer Note 32 B (ii)).

Capital Work-in-Progress includes Rs. 3,48.84 lacs (March 31, 2017 - Rs. 5,08.19 lacs) being salary of Rs. 1,69.16 lacs (March 31, 2017 - Rs. 2,07.11 lacs) and other expenses of Rs. 1,79.68 Lacs (March 31, 2017 - Rs. 3,01.08 Lacs) incurred towards capital projects. Salary and other expenses disclosed in Note 28 and Note 29 respectively are net of amounts included in CWIP.

Note 3 (C): Intangible Assets

The Gross carrying value of intangible assets of Rs. 90,66.41 lacs have been fully depreciated and the carrying value as at March 31, 2018 is Nil (March 31, 2017 - Nil).

(B) Rights, Preferences and Restrictions attached to Equity 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.

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 8.55% ( March 31,2017 - 8.65%)

iii) Balance sheet amounts- Pension (Non Funded Scheme)

The Company operates a defined benefit pension plan. The pension benefits payable to the employees are based on the employee’s service and last drawn salary at the time of leaving. The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company.

D) Projected Plan Cash flow:

The expected contribution payable to the Gratuity plan for the year ended March 31, 2018 is Rs. 4,00 Lacs. The weighted average duration to the payment of these cash flows for Gratuity is 12.49 years (March 31, 2017 : 13.89 years) and for Pension is 4.71 years (March 31, 2017 : 5.72 years)

B) Operating Leases As a Lessee

(i) The Company has taken operating leases for machinery, office premises, residential premises, warehouses, laptops, printers and vehicles. These lease arrangements include both cancellable and non-cancellable leases. Description of significant operating lease arrangements in respect of premises (including warehouses):

The Company has given refundable interest free security deposit under the lease agreements. No agreements other than IT assets lease agreement contain provision for renewal at the option of either party. And agreements relating to lease of flats include escalation clause.

All agreements provide for restriction on sub lease.

Future minimum lease payments under non-cancellable operating leases are as follows:

As a Lessor

(ii) The Company has given office premise space under non-cancellable operating lease for a period of 1 year. The rental income from the asset given on lease of Rs. 1,96.88 lacs ( March 31, 2017 : Rs. 1,98.45 Lacs) 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.

Future minimum lease payments that the Company is expected to receive under the non-cancellable lease are as under:

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

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

B) Group Companies where common control exists : Colgate-Palmolive Mktg. SDN BHD, Malaysia

: Colgate-Palmolive East Africa Ltd., Kenya

: Colgate-Palmolive Morocco, Morocco*

: Colgate-Palmolive Pty. Ltd., South Africa

: Colgate-Palmolive (Thailand) Ltd., Thailand

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

: Colgate-Palmolive Asia Pacific Ltd., Wan Chai, Hongkong (Formerly known as Colgate-Palmolive Management Services HK Ltd.)

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

: Colgate Palmolive (Vietnam) Ltd., Vietnam

: Colgate Sanxiao Company Limited, China

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

: Colgate-Palmolive (Burlington) Limited

: Colgate Palmolive Temizlik Urunleri Sanayi ve Ticaret S.A., Turkey

: Colgate-Palmolive Cameroun S.A., Cameroun

: Hawley & Hazel Chemical Co., (Zhangshan) Ltd., China

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

: Colgate-Palmolive Industrial Ltda., Brazil

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

: Norwood International Incorporated, U.S.A.

: Colgate-Palmolive Tanzania Limited, Tanzania

: Colgate-Palmolive Pty. Ltd., Boksburg

: Colgate Global Business Services Pvt Ltd., India

: Colgate-Palmolive Zambia Inc., Zambia

: Colgate-Palmolive Europe SARL, Poland*

: Colgate-Palmolive Services (Poland) Sp.z.o.o, Poland*

: 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 CACE Region, Istanbul, Turkey

: Colgate-Palmolive Senegal, Senegal

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

: Colgate-Palmolive (Pakistan) Limited, Pakistan

: Colgate Philippines Inc., Phillippines

: Colgate-Palmolive Mocambique Limitada : Colgate-Palmolive S.P.A., Italy

: Colgate Palmolive West East Investments, U.S.A.

: Tom’s Of Maine, U.S.A.

: Colgate-Palmolive Ghana Ltd., Ghana

: Colgate-Palmolive Europe Sarleu Div

: CP Middle East Exports Ltd.

: Colgate-Palmolive (Myanmar) Limited, Myanmar

: Colgate Palmolive Espana S.A.,Spain

: Hawley & Hazel Chemical Co., China

: Hill’s Pet Nutrition, U.S.A

: Hill’S Pet Nutrition Asia Limited

: Colgate-Palmolive Arabia Ltd.

: Colgate-Palmolive Pty. Ltd.,Australia

C) Key Managerial Personnel of the Company

(i) Executive Directors : I. Bachaalani

: M.S.Jacob

: M. Chandrasekar (effective January 02, 2017)

(ii) Non-Executive and Non Independent Directors : V. Nambiar

(iii) Non-Executive and Independent Directors : R. A. Shah

: P. K. Ghosh

: J. K. Setna (Up to March 31,2018)

: V. S. Mehta

: I. Shahani

: S. Gopinath

(iv) Company Secretary : M.Karnataki (Up to August 31, 2017)

K.R.Singh (effective February 23, 2018)

D) Post Employment Benefit Funds : Colgate-Palmolive (India) Limited Provident Fund

: Colgate-Palmolive India Gratuity Fund for Workmen

: Colgate-Palmolive India Gratuity Fund for NonWorkmen

* There are no transactions with the Company during the current year

Note 4 - Share Based Payments (a) Employee option plan

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

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

The fair value at the grant date of options granted during the year ended March 31, 2018 was Rs. 538.36 per option and Rs. 542.25 per option (March 31, 2017 : Rs. 542.70 per option). The fair value at grant date is determined using the Black-Scholes Model which takes into account the exercise price, expected volatility, option’s life, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

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

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.

Currrent 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 5 - Financial Risk Management

Inherent to the nature of the Company’s business are a variety of financial risks, namely liquidity risk, market risk and credit risk. Developing policies and processes to assess, monitor, manage and address these risks is the responsibility of the Company’s Management. The Risk Management Committee oversees this risk management framework in the Company and intervenes as necessary to ensure there exists an appropriate level of safeguards against the key risks. Updates on compliance, exceptions and mitigating action are placed before the Audit Committee periodically. Risk management policies and systems are reviewed regularly to reflect changes like major changes in ERP systems or go to market model, changes in organization structure, events denoting material change in the risk environment, etc.

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


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

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

As at March 31, 2018, the Company had undrawn letter of credit facilities in aggregate of Rs. Nil (March 31, 2017:Rs. 1,98.90 Lacs) with a 90 days term.

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


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

- currency risk;

- commodity price risk;

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


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

Trade Receivables

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

The gross carrying amount of trade receivables is Rs. 206,09.48 Lacs as at March 31, 2018 and Rs. 134,80.56 Lacs as at March 31, 2017.

Other financial assets

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

The Company’s maximum exposure to credit risk as at March 31, 2018 and March 31, 2017 is the carrying value of each class of financial assets as disclosed in Note 37(iii).

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

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

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

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

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

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

Note 6: The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act are as follows:

* The principal amount represents amount outstanding (due as well as not due) as at the Balance Sheet date.

** Includes interest on amounts outstanding as at the beginning of the accounting year.

Note 7: Exceptional Item includes severance and related expenses of Rs. 11,65.07 Lacs (Previous Year : Nil) with respect to certain organisation structure changes.

Note 8: The toothpowder manufacturing operations at the Aurangabad factory, Waluj, Maharashtra were discontinued effective May 5, 2015. The Company has received approval from the Maharashtra Industrial Development Corporation (MIDC) for transfer of its rights in the aforesaid property in favour of a prospective buyer. The Company currently expects the transaction to close in the near future.

Note 9: Subsequent to year end, the Company has declared a Special Interim Dividend of Rs. 11 per share aggregating to Rs. 360,68 Lacs (including dividend distribution tax) on May 21, 2018. In accordance with the provisions of Ind AS 10, this dividend is not recognised as a liability for the year ended March 31,2018.

Note 10: Previous year figures have been regrouped / reclassified, where necessary, to conform to the current year’s classification.

Signature to Notes 1 to 44