(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) atSanand.

(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. The value of leasehold rights in the said land is H Nil. 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 Company has taken legal opinion and is taking necessary legal steps for surrender of the land and contesting the demand. Further refer Note 33, (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 34 for disclosures of capital commitments for the acquisition of property, plant and equipment.

(iv) Buildings include investment property with net carrying value of H 176.41 Lakhs (March 31, 2023 : H 188.98 Lakhs) and fair value of H 3,434 Lakhs (March 31, 2023 : H 3,260 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 21,800/- per square feet. The rental income and depreciation expense for the year ended March 31, 2024 are H 258.69 Lakhs (March 31, 2023 : H 248.06 Lakhs) and H 12.57 lakhs (March 31, 2023 : H 12.57 Lakhs) respectively. (Refer Note 16).

Capital Work-in-Progress includes H 34.85 Lakhs (March 31, 2023 - H 74.08 Lakhs) being salary of H 22.46 Lakhs (March 31,2023 - H 70.62 Lakhs) and other expenses of H 12.39 Lakhs (March 31, 2023 - H 3.46 Lakhs) incurred towards capital projects. Salary and other expenses disclosed in Note 28 and Note 30 respectively are net of amounts included in CWIP.

Note 3 (C): Other Intangible Assets

The Gross carrying value of intangible assets of H Nil have been fully depreciated and the carrying value as at March 31, 2024 is Nil. (March 31, 2023 - Nil). Intangible assets comprise Goodwill, Trademarks, Copyright and Technical Know-how.

(B)Rights, Preferences and Restrictions attached to Equity Shares:

The Company has one class of Equity Shares having par value of H 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.

(Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013)

Note 16: Lease liabilities

As a Lessee

The Company has lease contracts for various items of plant and equipments, vehicles, offices and residential buildings. Leases of plant and equipments has lease term of 10 years, while other leases have lease terms ranging from 2 years to 9 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets. The Company has lease contracts that includes extension option, however the lease term in respect of such extension option is not defined in the contract.

The Company also has certain leases with lease terms of 12 months or less and leases of low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

The carrying amounts of right-of-use assets recognised and the movements during the year are given in Note 3(D)(I).

The effective interest rate for lease liabilities is 7.33% p.a. to 7.64% p.a., with maturity between 2024-2030.

The Company had total cash outflows for leases of H 1,899.49 lakhs for the year ended March 31, 2024 and H 1,906.83 lakhs for the year ended March 2023.

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 31st May, 2024. The rental income from the asset given on lease of H 258.69 Lakhs (March 31, 2023 : H 248.06 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 - Sales as per contracted price before discounts H 649,375.99 Lakhs for the year ended March 31, 2024 (March 31, 2023 H 597,959.77 Lakhs)

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.

II Defined Benefit Plans

Contribution to Gratuity Fund (Funded Scheme), Provident Fund (Funded Scheme) and accrued liability towards Pension Scheme (Non-Funded Scheme). In accordance with Ind AS 19, Actuarial valuation was performed in respect of the aforesaid defined benefit plans.

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

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 31,2023 - 8.15%).

D) Projected Plan Cash flow:

The expected contribution payable to the Gratuity plan for the next year is H 400 Lakhs. The expected contribution payable to the Provident Fund plan for the next year is H 1,391.78 lakhs.

The weighted average duration to the payment of these cash flows for Gratuity is 10.88 years (March 31, 2023 : 10.61 years). The weighted average duration to the payment is for Provident Fund plan is 12.42 years (March 31, 2023 : 12.36 years)

For certain years for which the Company has received favourable orders from the Income Tax Appellate Tribunal (ITAT) quashing outstanding demand of H 53,943.87 lakhs, the Income Tax Department has preferred further appeals with the High Court which are yet to be admitted in the High Court.

Note 33: Demand notices in relation to leased property

During the year, the Company has further received demand notices of H 1,385.90 Lakhs (H 9,775.91 Lakhs for March 31, 2023) from lessor in respect of leased property at Sewri resulting into total outstanding demand of H 13,030.48 Lakhs as at March 31, 2024 (H 11,644.58 Lakhs as at March 31, 2023), for increase in the rentals with retrospective effect from October 01, 2012. The Company is seeking explanation from authorities in relation to such demands and basis legal opinion obtained by the Company, the Company believes that such demand is exorbitant and not tenable before the Court of Law.

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, 2024 was H 1,224.59 per option (March 31, 2023 : H 1,115.19 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.

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 ongoing 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.

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.

B MANAGEMENT OF MARKET RISK

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 are explained below.

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 17,335.20 Lakhs as at March 31, 2024 and H 16,328.63 Lakhs as at March 31, 2023.

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 : Amount less than J 1,000 appearing in above table are disclosed at 0.00 due to presentation in lakhs.

Note 45: 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. With respect to changes made by certain privileged access rights to the SAP application and/or the underlying database audit trail feature is not enabled. The Company does have a privileged access monitoring tool that monitors these access rights and the Company is in the process of further strengthening this feature with adequate logs to be maintained. Further no instance of audit trail feature being tampered with was noted in respect of the software. The Company is also in the process of maintaining daily back up of audit trail (edit logs) on servers physically located in India.

Note 46: Other Statutory information

(i) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(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, 2024.

(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 whatsover by or on behalf of the company (Ultimate Beneficiaries ) or

(b) Provide any guarantee, security or the like to or on behalf 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 whatsover 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.

Note 47: Subsequent to year end, the Company has declared a Second Interim dividend of H 26/- per share and one time special interim dividend of H 10/- per share aggregating to H 97,915 Lakhs on May 14, 2024 for FY 2023-24 which will be paid on and from June 7, 2024.

Note 48: Exceptional Item includes severance and related expenses of H 1,950.20 Lakhs (Previous Year : 1,120.87 Lakhs) for the year ended 31^st March 2024 with respect to certain organisation structure changes.

Note 49: Previous year's figures have been regrouped / reclassified as considered necessary, to conform with the current year presentation, where applicable.

Signature to Notes 1 to 49 are an integral part of these financial statements