To,
The Members,
Colgate-Palmolive (India) Limited
Your Directors are pleased to present their 82nd Report and
Audited Financial Statements of the Company for the Financial Year ended March 31, 2023.
Financial Highlights
(Rs in crores)
|
FY 2022-23 |
FY 2021-22 |
Total Revenue (a+b+c) |
5,279.77 |
5,126.05 |
Sales (a) |
5,187.86 |
5,066.46 |
Other Operating Revenue (b) |
38.33 |
33.33 |
Other Income (c) |
53.58 |
26.26 |
Profit before Tax and exceptional items and
Tax |
1,420.88 |
1,409.01 |
Profit before Taxation |
1,409.67 |
1,409.01 |
Tax Expense |
362.53 |
330.69 |
Profit for the year |
1,047.14 |
1,078.32 |
Other Comprehensive Income (net of Tax)(gain) |
4.89 |
(4.67) |
Total Comprehensive Income |
1,042.26 |
1,082.99 |
Balance brought forward |
1,308.08 |
741.86 |
Profit available for appropriation |
2,350.34 |
1,824.85 |
Balance transferred to Retained Earnings from
Share Options Outstanding |
6.93 |
- |
Account |
|
|
Appropriation : |
|
|
Dividend |
(1,060.74) |
(516.77) |
Dividend Distribution Tax |
- |
- |
Balance carried forward |
1,296.53 |
1,308.08 |
Business Performance
Reported Net Sales for the Financial Year 2022-23 stood at H 5,187.86
crores against H 5,066.46 crores of previous year. Net Sales increased by 2.4% in
comparison to the previous year. Reported Net Profit after tax for the Financial Year
2022-23 was H 1,047.14 crores, a decrease of 2.9% over the previous year. Despite the
challenging business and economic environment, your Company continues to sustain its
leadership position in both the Toothpaste and Toothbrush categories during the Financial
Year 2022-23.
Dividend
The Board of Directors of the Company has declared two interim
dividends, aggregating to H 39/- per share, for the Financial Year 2022-23. The first
interim dividend of H 18/- per share was declared on October 20, 2022 and paid on
and from November 16, 2022 and the second interim dividend of H 21/- per share was
declared on May 12, 2023, to be paid on and from June 8, 2023. Considering the declaration
of two interim dividends for the Financial Year 2022-23, the Board of Directors has not
recommended a final dividend for the Financial Year 2022-23.
Transfer to Reserves
During the year, no amount was transferred to the general reserves.
Focus on Innovation and New Launches / Campaign
Your Company is focused on delivering insight-driven innovation that
provides value-added new products across all price points. In the Financial Year 2022-23,
the following products were launched/re-launched:
Toothpaste Relaunch of Colgate Strong Teeth :
In 2022, Colgate Strong Teeth (CST) underwent a relaunch with a renewed
focus on highlighting the importance of strong teeth as a foundation for good nutrition.
The brand aimed to establish a connection between healthy teeth and better nutrient
absorption through effective chewing.
The new proposition centered on promoting stronger teeth, which ensure
better chewing and, in turn, leads to better nutrient absorption. This proposition was
supported by a Calcium Boost' and Amino Shakti', which were
activated across all touchpoints. This activation was designed to elevate CST to an
advanced and contemporary brand.
To promote this message, the brand brought two popular celebrities,
Shahid Kapoor and Rana Daggubati, who led the campaign nationwide. Notably, this was the
first time that fathers led CST messaging in a campaign. The campaign included multiple
films aimed at increasing awareness and consideration of the CST. These films depicted the
dads reinstating the association of stronger teeth with a stronger self, using varied
imagery aimed at children.
Colgate Max-Fresh Charcoal :
The Company introduced a novel variant belonging to its Max-Fresh
product line, which incorporates a distinctive blend of bamboo charcoal, wintergreen mint,
and cooling crystals. This toothpaste provides an invigorating burst of freshness that
contributes to sustaining oral hygiene while also delivering an unparalleled revitalising
awakening experience.
Colgate Active Salt :
The Company has re-introduced Colgate Active Salt, now equipped with
enhanced "Anti Germ Properties" that combat up to 99.9% of germs, effectively
preventing dental problems.
Colgate PerioGard :
The all new Colgate PerioGard, formulated with a potent zinc citrate
composition that effectively targets anaerobic bacteria, aiding in the treatment of
various gum issues, such as bleeding, inflammation and halitosis.
Toothbrushes
KEEP toothbrush:One of the Company's latest introductions, the KEEP
toothbrush, aims to assist customers in making eco-friendly decisions. The
toothbrush has a reusable metal handle that can stand upright, and it comes with a
replaceable soft-bristled head that has a tongue scraper. By eliminating the use of
plastic in the entire handle, the toothbrush reduces plastic consumption by 80%*.
KEEP the handle, replace the brush head-it's that simple!
Advanced electric toothbrush :
The smart electric toothbrush offers a personalised brushing encounter,
enabling users to
*compared to similarly - sized Colgate Toothbrushes choose the
combination that suits them best and delivering immediate feedback to ensure proper use.
It is equipped with 33 unique combinations, 4 modes, a smart pressure sensor, and a
30-second pacer to deliver a sophisticated cleaning experience. Additionally, the sleek,
fashionable design and ergonomic curves of the handle facilitate a stylish and comfortable
brushing experience.
Super Flexi Toothbrush :
For the first time in a decade, India's best-selling toothbrush brand
underwent a massive relaunch. Featuring a contemporary appearance, the toothbrush handle
is offered in four vibrant color options. The updated material includes wave trim
bristles, which offer an enhanced brushing experience and, the bristles themselves are
more durable.
Toothbrush :
A premium toothbrush with
Visible White O 2
unique 360 degree wraparound spiral bristles with stain removal
capabilities. The toothbrush is launched as an brand regimen, known for
extension to the Visible White O 2
superior technology and assured results on teeth whitening.
Baby Teether :
This product is a multifunctional device that serves both as a Training
Toothbrush and Teether, specifically designed to alleviate discomfort during the teething
stage with its soft and delicate silicone bristles. It has undergone comprehensive safety
testing and is approved for use by infants aged 0 to 12 months. The toothbrush is free of
Bisphenol A (BPA) and is entirely composed of 100% food-grade silicone. The malleable
handles are designed to accommodate the dimensions and grip of small hands.
Change(s) in the nature of Business
During the Financial Year under review there were no material changes
with regard to the nature of business of the Company.
Details of Subsidiary, Joint Venture and Associate Company
Your Company does not have any Subsidiary or Joint Venture or Associate
Company.
ESG & BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING
As a leading oral care company in India, Colgate-Palmolive (India)
Limited continues to champion optimism and amplify ESG efforts to reimagine a
healthier future for all its people and the planet.' We are steadfast in bringing to
life our strategy and plans to create shared and sustainable value for all our
stakeholders. We continue to remain unwavering in our commitment to responsible and shared
growth as well as building a sustainable future. The Company's flagship programs such
as Colgate Bright Smiles, Bright Futures?', Keep India Smiling
Scholarship programs and several other initiatives around Oral Health, Water Conservation,
Women empowerment have been instrumental in driving social impact, preserving the
environment and reaching millions of People. We continuously rebuild and realign our
practices to innovate for good as everyone deserves a future to smile about.'
In our endeavor to inspire trust and transparency, this is the second year of publishing
our Environmental, Social and Governance (ESG) Report and Business Responsibility and
Sustainability Report (BRSR). The BRSR showcases our ESG progress and empowers
stakeholders to make informed decisions.
Environment :
Our Company is committed to ensuring that our consumers enjoy a range
of advantages from using our sustainable products. Our product development process is
validated by consumer feedback received through various channels on improving our
processes and systems. Valuable insights received through our customer satisfaction
surveys coupled with enhanced employee skill-sets fuel our product innovations. The
Company has also implemented a follow-up monitoring mechanism to ensure corrective actions
are undertaken to provide safe, sustainable and high-quality products to all our
consumers.
To achieve the goal of delivering innovative and sustainable products,
we are focused on the following priority areas:
Usage of recycled content,
Eliminate usage of plastics in packaging.
Social :
Our people are our asset, and we strive to strengthen relationships
with them to build a resilient, innovative and future-fit workforce. The Company breaks
the mold and nurtures a work culture which bolsters creativity and encourages employee
driven innovation, furthering Company's purpose of reimaging a better future
for the people and the planet.' Through our inclusive human resource policies and
practices, we make conscious efforts to maintain a safe and a supportive work environment
for our employees and the extended workforce. We inspire trust by providing our people
with fair and competitive remuneration, rewards and benefits, learning opportunities,
career growth, and work flexibility which help retain and attract new employees and
workers with similar values. Additionally through our Corporate Social Responsibility
initiatives we endeavour to create a meaningful impact on the millions of lives we touch.
Our focus areas include, Oral Health Elevation, Water Access and Augmentation, Women
Empowerment and Education. Through these programs we focus on providing communities with
access to safe drinking water, water for sanitation, water availability for agriculture
and farm based activities, empowering women through livelihoods, financial and digital
literacy and enlightening school children through oral health education and tobacco
prevention sensitization, we are also impacting smiles for life for children suffering
from cleft and palate deformities.
Governance :
Colgate-Palmolive (India) champions the long-term value creation for
all stakeholders through robust and fair governance mechanisms. Our governance structures,
that are built on the pillars of integrity and transparency, ensure that ethical standards
are cascaded across the business. Behaving ethically is a business imperative as we strive
to meet regulatory compliances with all applicable laws while conducting business across
geographies. We are guided by a highly engaged board and management that ascertains that
sustainability is closely integrated with our governance mechanisms.
Our 2025 Sustainability and Social Impact Strategy guides our approach
on ESG through three important pillars of S-MIL-E: Driving Social Impact, Helping Millions
of Homes and Preserving our Environment. Our focus on the People to Promoting healthier
lives, Contributing to the Communities where we live and work, Performance to Growing the
business with innovative, more sustainable products that make the lives of consumers
healthier and more enjoyable and on our Planet to conserve Earth's finite resources,
addressing climate change and maintaining the well-being of our planet for generations to
come; is ever increasing and is driving all our plans and actions. The Company has
received TRUE? certification for Zero Waste (Platinum level) in 2019, for all
its four manufacturing sites in India, from Green Business Certification Inc. (GBCI), the
premier organization independently recognizing excellence in green business industry
performance and practice globally. The GBCI administers TRUE? certification
for Zero Waste, a program for businesses to assess performance in reducing waste and
maximizing resource efficiency. Facilities earn TRUE? certification by
achieving minimum program requirements and attaining points; the program operates on a
ranking system, with Platinum' being the highest certification level. We
continue to maintain the certification as our Diversion Rating at more than 99% as per the
requirements. The Company is the first in India to receive such certification.
Business Responsibility and Sustainability Reporting :
Pursuant to the Securities & Exchange Board of India (SEBI) vide
its circular no. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated May 10, 2021, your Company took a
proactive approach in adopting Business Responsibility and Sustainability Reporting (BRSR)
for the Financial Year 2021-22, a year in advance of the mandatory requirements. This
report ensures that our investors have access to relevant information and disclosures with
regard to our performance on Environmental, Social and Governance (ESG) parameters. Your
Company believes in conducting its business activities in a responsible and sustainable
manner.
This report illustrates the Company's efforts towards creating a
long term value for all stakeholders in a responsible manner and your Company has always
been steadfast in embedding ESG across the Company. To showcase our commitment towards
sustainable development your Company has incorporated transparent reporting practices with
regard to ESG responsibilities. The BRSR for Financial Year 2022-23 forms an integral part
of this Report and is attached as Annexure 6.
Corporate Social Responsibility
The Company is committed to ensure the well-being of the community and
environment in which it operates. Corporate Social Responsibility (CSR) forms an integral
part of our business activities. Company's CSR Policy also reflects the
Company's commitment towards society and environment. The CSR initiatives are carried
out by the Company through a variety of effective programs in accordance with the
requirements of Schedule VII of the Companies Act, 2013, in partnership with reputed NGOs
and agencies.
The ESG and Corporate Social Responsibility Committee and the Board of
Directors closely review and monitor, from time to time, the various CSR activities
undertaken by the Company. The key CSR programs undertaken by your Company during the
Financial Year 2022-23 are :
1. Colgate Bright Smiles, Bright Futures?;
2. Water Augmentation for Livelihoods & Women Empowerment - with
Seva Mandir
3. Water accessibility program - with Water For People India Trust
4. Keep India Smiling Foundational Scholarship & Mentorship Program
with Shikshadaan
5. Smiles For Life - Program on Cleft Surgeries & Care with
MissionSmile
6. Empowering children with Computers and Language skills - With Action
Aid
7. Positive Step Program - with NTP+
As per the requirements of Section 135 of the Companies Act, 2013, the
Company was required to spend an amount of H 25,35,12,330.44 (Rupees Twenty Five
Crore Thirty Five Lakhs Twelve Thousand Three Hundred and Thirty and Forty Four Paise
Only). The ESG and Corporate Social Responsibility Committee approved an amount of H
25,38,00,000 (Rupees Twenty Five Crore Thirty Eight Lakhs Only) as CSR Spend for the FY
2022-23.
However, since the Company was in the process of redesigning Colgate
Bright Smiles, Bright Futures? Program and the same was re-launched in
January, 2023. Considering the same, the Company could not spend the entire CSR Funds
allocated for the said project, during the Financial Year. An amount of H 5,53,19,859.36
(Rupees Five Crore Fifty Three Lakhs Nineteen Thousand Eight Hundred Fifty Nine and Thirty
Six Paise Only) remaining unspent was transferred to "Colgate-Palmolive (India)
Limited - Corporate Social Responsibility Unspent Account (BSBF) - 2022-23" as per
the statutory timelines and the same will be spent on the said project within 3 Financial
Years.
A detailed description of the above programs/ activities is contained
in the Annual CSR Report which forms an integral part of this Report and is annexed as Annexure
2.
The contents of the CSR Policy as well as the CSR programs undertaken
by the Company are available on the Company's website at
https://www.colgatepalmolive.co.in/community-impact
Directors Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, your
Company's Directors, based on the representations received from the Management,
confirm that:
in the preparation of the Annual Accounts for the Financial Year
ended March 31, 2023, the applicable Accounting Standards have been followed along with
proper explanation relating to material departures;
they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at March 31, 2023 and
of the profit and loss of the Company for that period;
they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
the Annual Accounts have been prepared on a going
concern' basis;
they had laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and operating
effectively; and
they have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems are adequate and
operating effectively.
Employee Relations
The Employee Relations in the Company continued to remain healthy,
cordial and progressive in the Financial Year 2022-23.
At Colgate-Palmolive (India), we consider every employee as one of the
most valuable resources contributing towards the long term success of the Company. Our
employees are committed to acting with compassion, integrity, honesty and high ethics in
all situations. As per the Company's core values, all employees are treated with equality
and fairness and are provided with opportunities to develop their career and meet their
aspirations while working with the Company in India and, wherever possible, outside of
India on assignments with group companies of Colgate-Palmolive.
Your Company also recognizes and follows "Managing with Respect
Principles" which are applicable not only within Colgate-Palmolive but also while its
employees are dealing with its customers, suppliers, vendors etc. Managing with Respect is
the way Colgate-Palmolive (India) people put our values into action. It is creating an
environment where people feel free to offer suggestions, contribute ideas and resources
and help grow the business. Managing with Respect creates an environment where people
genuinely care about each other and work well together to reach their full potential.
The detailed description of the Employee Initiatives taken by the
Company are included in the Management Discussion and Analysis. Kindly refer page no. 148.
Prevention of Sexual Harassment at workplace
Your Company has zero tolerance towards any kind of harassment,
including sexual harassment, or discrimination. An Internal Complaints Committee (ICC) has
been constituted to investigate and resolve sexual harassment complaints. Employees are
encouraged to speak up and report any such incidences to the ICC. A Policy on Prevention
of Sexual Harassment is put in place, which is reviewed by the ICC at regular intervals.
Any complaint made to the ICC is treated fairly and confidentially and the Company does
not tolerate any kind of retaliation towards the employees who make complaints to ICC.
An online training is rolled out on the subject and it is mandatory for
all the employees of the Company to complete and obtain an online certification. The said
training is also mandated for the new joinees as a part of their onboarding process.
During the Financial Year 2022-23, 2 complaints were received,
investigated and appropriately resolved by the ICC.
Particulars of Employees
Information as per Section 197 of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided
in Annexure 4 to this Report.
The statement containing the names of top ten employees in terms of
remuneration drawn and the particulars of employees as required under Section 197(12) of
the Companies Act, 2013 read with Rule 5(2) of the aforementioned Rules will be made
available on request sent to the dedicated email address of the Company at
cpilagm@colpal.com
Trade Relations
Your Directors wish to record appreciation of the continued, unstinted
support and cooperation from its retailers, stockists, suppliers of goods/ services,
clearing and forwarding agents and all others associated with it. Your Company will
continue to build and maintain a strong association with its business partners and trade
associates.
Energy Conservation, Technology Absorption and Foreign Exchange
The information required under Section 134(3)(m) of the Companies Act,
2013 read with the Companies (Accounts) Rules, 2014 with respect to conservation of
energy, technology absorption and foreign exchange earnings/outgo is attached as Annexure
3 to this Report.
Corporate Governance
A separate report on Corporate Governance laying down the Company
Philosophy on the Corporate Governance as well as all the disclosures as required under
the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ("the SEBI Listing Regulations") along with the
Auditors' Certificate on its compliance with the corporate governance requirements
under the SEBI Listing Regulations forms an integral part of this Report and is annexed as
Annexure 1.
Directors and Key Managerial Personnel
Since April 1, 2022 till the date of this Report, the following changes
took place in the Board of Directors and the Key Managerial Personnel (in the order of
their occurrence):
Resignation of Mr. Ram Raghavan (DIN : 08511606) as the Managing
Director of the Company effective close of business hours on April 15, 2022 and effective
that date he also ceased to be a Key Managerial Personnel of the Company.
Resignation of Mr. Chandrasekar Meenakshi Sundaram (DIN :
07667965) as the Whole-time Director effective close of business hours on June 30, 2022.
Appointment of Ms. Prabha Narasimhan (DIN : 08822860) as the
Managing Director & Chief Executive Officer of the Company for 5 (five) consecutive
years w.e.f. September 1, 2022. In line with the provisions of Section 203 of the
Companies Act, 2013. Prabha is also designated as a Key Managerial Personnel effective
that date.
Re-appointment of Ms. Sukanya Kripalu (DIN : 06994202) as an
Additional Director designated as Non-Executive Independent Director of the Company for a
second term of 5 (five) consecutive years w.e.f. June 1, 2023.
Based on the declarations provided by Ms. Kripalu, she is Independent
of the Management. Considering the rich and vast experience of Ms. Sukanya Kripalu and the
contributions made by her during her tenure, the Board recommends the re-appointment of
Ms. Sukanya Kripalu as a Non-Executive, Independent Director.
Pursuant to the provisions of Section 152 of the Companies Act, 2013,
Mr. Jacob Sebastian Madukkakuzy (DIN: 07645510), Whole-time Director & Chief Financial
Officer, retires by rotation at the ensuing Annual General Meeting and being eligible, has
offered himself for re-appointment. Based on the recommendation of the Nomination and
Remuneration Committee, the Board recommends his re-appointment.
A detailed profile of all the Directors of your Company is available on
the Company website at https://www. colgatepalmolive.co.in/who-we-are/board-of-directors.
Declaration of Independence :
The Company has received the necessary disclosures under the Companies
Act, 2013 and the SEBI Listing Regulations including declarations from all Independent
Directors that they meet the criteria of independence as laid down under Section 149(6) of
the Companies Act, 2013 and the SEBI Listing Regulations. In the opinion of the Board, the
Independent Directors fulfill the conditions specified in the SEBI Listing Regulations and
are independent of the management. Further, the Independent Directors possess integrity
and necessary expertise and experience (including the proficiency) which bring tremendous
value to the Board and to the Company.
Directors and Officers Liability Insurance Policy
The Company has a Directors and Officers Liability Insurance Policy
which protects Directors and Officers of the Company for any breach of fiduciary duty.
Familiarization Program
The Company conducts familiarization programs for Independent Directors
with regard to their roles, rights, responsibilities towards the Company, the business
operations of the Company, etc. Detailed presentations are made to the Board and its
committees from time to time.
Details of the familiarization programs extended to the Independent
Directors during the Financial Year are disclosed on the Company website from time to time
at http://www. colgateinvestors.co.in/policies
Gist of Familiarization programs conducted during the Financial Year
2022-23 are as follows:
Sr. No. |
Program/Presentation |
1. |
Update on Business operations |
2. |
Regulatory update |
3. |
ESG Framework |
4. |
ESG & BRSR |
5. |
Update on Project - Smile Store |
6. |
Red Zone Risk Matrix |
7. |
Succession Planning/Talent Retention |
8. |
Supplier Related Risk |
9. |
Update on Shareholder Matters |
10. |
Insider trading tool |
11. |
Amendments in the provisions of RPT |
12. |
ESG Update |
Policies
The Board of Directors of your Company, from time to time, has framed
and revised various Policies as per the applicable Acts, Rules and Regulations and
Standards of better governance and administration of your Company. Overview of the key
policies, as approved by the Board of Directors is as follows :
Nomination and Remuneration Policy:
This Policy sets the objective, terms of reference, functions and scope
of the Nomination and Remuneration Committee for determining qualifications, experience,
independence, etc. relating to the appointment and remuneration for the Directors, Key
Managerial Personnel and Senior Management employees of the Company.
Corporate Social Responsibility (CSR') Policy:
This Policy sets out the role of the CSR Committee of the Board of
Directors, which includes identification of the areas where the CSR activities will be
performed, evaluation of CSR activities, review the CSR spending vis-a-vis the activities
implemented and monitoring the process of CSR projects/ programs of the Company.
Risk Management Policy:
This Policy provides the framework for identification of risks of the
Company, risk assessment and prioritization, loss prevention measures and other risk
management measures for the Company.
Related Party Transactions Policy: This Policy regulates the entry
into transactions between the Company and its related parties and the required corporate
approvals as per the laws and regulations applicable to the Company from time to time.
Policy on Determination of Materiality of Event or Information:
This Policy lays down the criteria for determining the materiality of
an event or information of the Company for purposes of making required disclosures to the
stock exchanges pursuant to the SEBI Listing Regulations.
Records Management Policy:
This Policy establishes general guidelines for retaining, preserving
and archiving important documents and information.
Code of Conduct for dealing in the Company's Securities:
Pursuant to the SEBI (Prohibition of Insider Trading) Regulations,
2015, your Company has framed a Code of Conduct on prohibition of insider trading.
Dividend Distribution Policy: This Policy describes the
circumstances under which a Member may or may not expect a dividend and the financial
parameters and internal and external factors which are considered by the Board of
Directors for declaration of dividend.
Policy on Retirement of Directors:
This Policy lays down the age criteria for retirement of Directors on
the Board of the Company. The criterion for age is desirable to allow smooth retirement
for the purpose of succession planning and further to induct requisite skills and
competencies on the Board of the Company with appropriate continuity.
Public Policy Advocacy:
This Policy deals with laying down of standardized approach while
making interactions and /or representations to the Government / Regulatory Authorities.
The Company may offer opinions and recommendations to governments on particular issues to
support its business goals and needs.
Board Diversity Policy:
The Company recognizes the importance and benefits of having a diverse
Board to enhance the quality of its performance. Diversity encompasses diversity of
perspective, experience, skills, education, background, ethnicity, gender and personal
attributes. This policy ensures that we have optimum composition of Board Members with
diverse experience and skill sets to achieve the objectives of the organization.
The aforesaid Policies are available in the Investors Section on the
website of the Company at https://www.colgateinvestors. co.in/policies.
Number of Board Meetings
During the Financial Year 2022-23, 6 (six) Board meetings were held on
April 28, 2022; May 26, 2022; July 27, 2022; October 20, 2022; January 24, 2023; and March
24, 2023. The details of which are provided in the Corporate Governance Report that forms
an integral part of the Board's Report.
Committees
The Board of Directors of the Company has established various Board
committees to assist in discharging their duties. These include Audit Committee,
Stakeholders' Relationship Committee, ESG and Corporate Social Responsibility Committee,
Risk Management Committee and Nomination and Remuneration Committee. The Board has
approved the terms of reference for each of these committees. All the committees of the
Board hold their meetings at regular intervals and make their recommendations to the Board
from time to time as per the applicable provisions of the Companies Act, 2013 and the SEBI
Listing Regulations.
The broad terms of reference of the said Committees are stated in the
Corporate Governance Report that forms an integral part of the Board's Report.
Annual Performance Evaluation by the Board70
Pursuant to the provisions of the Companies Act, 2013 and the SEBI
Listing Regulations, the Board has carried out an Annual Performance Evaluation of its own
performance, as well as the performance of its Committees, its Members including
Independent Directors and the Chairperson. The manner in which the evaluation has been
carried out has been explained in the Corporate Governance Report that forms part of the
Board's Report.
The Annual Performance Evaluation process has been designed in such a
manner which helps to measure effectiveness of the entire Board, its Committees,
Chairperson and Individual Directors. Such processes help in ensuring overall performance
of the Board and demonstrates a high level of corporate governance standards. There are
various key performance areas and evaluation criterias which are measured and analyzed
during the process, few of them are in the table:
Sr. No. |
Particulars |
Key performance
areas/evaluation criteria |
1. |
For Independent Directors |
Suitable business
knowledge and understanding of the industry in which the Company operates. |
|
|
Exercises his/her own
judgement and voices opinion freely without any influence. |
|
|
Understands governance,
regulatory, financial, fiduciary and ethical requirements of the Board/ Committee. |
2. |
For Executive Directors |
Good understanding and
knowledge of the Company and the sector it operates in and stays abreast of issues,
trends, risks, opportunities and competition affecting the Company and uses this
information to assess and guide the Company's performance. |
|
|
Understands duties,
responsibilities, qualifications, disqualifications and liabilities as a director. |
|
|
Ensures best Corporate
Governance practices and compliance with the applicable laws and regulations. |
3. |
For the Chairperson |
Provides guidance to
the Board on delineation of roles of the Board and Management. |
|
|
Provides direction to
the Board on aspects that are critical/of strategic significance to the Company. |
|
|
Creates a cohesive environment to
allow open and fair discussion. |
4. |
For Committees |
Committee effectively
performs the responsibilities as outlined in the charter and applicable laws and
regulations. |
|
|
Committee's
composition in terms of size, skills/expertise and experience is appropriate to perform
its responsibilities. |
|
|
Committee meetings are
conducted effectively with sufficient time spent on significant or emerging issues. |
5. |
For the Board |
Proper mix of competencies to conduct
its affairs effectively. |
|
|
Appropriate mix of independent and
non- independent directors. |
|
|
Number and frequency of
Board meetings is adequate to perform its duties effectively. |
Vigil Mechanism71
The Company has an effective Vigil Mechanism system which is embedded
in its Code of Conduct. The Code of Conduct of the Company serves as a guide for daily
business interactions, reflecting the Company's standard for appropriate behavior and
living corporate values. The Code of Conduct applies to all Colgate people, including
Directors, Officers, and all employees of the Company. Even the Company's vendors and
suppliers are subject to the Third Party Code of Conduct requirements and adherence to the
same and it is a prerequisite for conducting business with the Company. The Code of
Conduct Hotline is available on the Company website to report any concerns about unethical
behavior, any actual or suspected fraud or violation of the Company's Code of
Conduct. No adverse action will be taken against anyone for complaining about, reporting,
participating or assisting in the investigation of a suspected violation of the Code of
Conduct, unless the allegation made or information provided is found to be intentionally
false. The Company conducts various training and awareness sessions on Code of Conduct on
a continuous basis during town halls, meetings or through creative mailers to all
employees. Senior Leadership Members at various occasions emphasize the importance of
adherence to the Company's Code of Conduct and its ethical ways of working.
The Code of Conduct can be accessed at https://www.
colgatepalmolive.com/en-us/who-we-are/governance/code-of-conduct
Public Deposits
During the Financial Year 2022-23, your Company has not accepted any
Public Deposits under Chapter V of the Companies Act, 2013.
Unpaid/Unclaimed Dividend
In terms of the provisions of Investor Education and Protection Fund
(Accounting, Audit, Transfer and Refund) Rules, 2016, H 2.10 crores of unpaid/unclaimed
dividends were transferred during the Financial Year to the Investor Education and
Protection Fund (IEPF).
The due dates for transfer of unpaid dividend to IEPF for subsequent
years is provided in the Corporate Governance Report annexed as Annexure 1 to this
Report.
Loan, Guarantees and Investment
Particulars of loans, guarantees and investment made by the Company
pursuant to Section 186 of the Companies Act, 2013 are given in Note No. 4 and 11 to the
Financial Statements.
Related Party Contracts & Arrangements
All related party transactions done by the Company during the Financial
Year 2022-23 were at arm's length and in the ordinary course of business. All related
party transactions were reviewed and approved by the Audit Committee. During the Financial
Year 2022-23, the Company has not entered into any material related party transaction as
per the SEBI Listing Regulations with any of its related parties. Disclosures pursuant to
the Accounting Standards on related party transactions have been made in the notes to the
Financial Statements. To regulate related party transactions, the Company has also framed
a Policy on Related Party Transactions and the same is available on the Company's
website at https://www.colgateinvestors.co.in/policies As there were no related
party transactions which were not in the ordinary course of the business or not on
arm's length basis and also since there was no material related party transaction as
stated above, disclosure under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2
is not applicable. For more details on Related Party Transactions which are in ordinary
course of business and on arm's length basis, please refer to Note No. 37 of
Financial Statements.
Auditors
M/s. S R B C & CO LLP, Chartered Accountants, Mumbai (ICAI Firm
Registration No. 324982E/ E300003), were appointed as Statutory Auditors of the Company
for a second term at the 81st Annual General Meeting (AGM) of the Company held
on July 28, 2022, for a period of 5 (five) consecutive years from the conclusion of the 81st
AGM till the conclusion of the 86th AGM.
The Audit report for the Financial Year 2022-23 does not contain any
qualification, reservation or adverse remarks. Further, during the Financial Year 2022-23,
the Statutory Auditors have not reported any instances of fraud to the
Audit Committee or Board as per Section 143(12) of the Companies Act,
2013.
Secretarial Auditor & Secretarial Audit Report
The Board had, in its meeting held on May 26, 2022 appointed M/s. S. N.
Ananthasubramanian & Co., Company Secretaries in practice, (ICSI Unique Code:
P1991MH040400, FCS No. 4206, COP No. 1774) to carry out the Secretarial Audit for the
Financial Year 2022-23 under the provisions of Section 204 of the Companies Act, 2013. The
Secretarial Audit Report in Form MR-3 is attached as Annexure 5 to this Report. The
Secretarial Audit Report for the Financial Year 2022-23 does not contain any
qualification, reservation or adverse remarks.
In view of the good governance practice, the Board of Directors at its
Meeting held on May 12, 2023, approved the rotation of the Secretarial Auditors and
appointed M/s. Dholakia & Associates LLP (ICSI Unique Code: P2014MH034700, FCS No.
10032, COP No. 12884) as the Secretarial Auditors of the Company for the Financial
Year 2023-24.
Cost Auditor and Cost Records
Maintenance of cost records and requirement of cost audit as prescribed
under the provisions of Section 148 of the Companies Act, 2013 are not applicable for the
business activities carried out by the Company.
Annual Return
The Annual Return of the Company has been placed on the website
of the Company and can be accessed at https://www.colgateinvestors.co.in/annual-report
Significant and Material Orders passed by the Regulators or Courts
During the Financial Year 2022-23, there were no significant or
material orders passed by the Regulators or Courts or Tribunals impacting the going
concern status and operations of the Company in the future.
Material changes affecting the Company
There have been no material changes and commitments affecting the
financial position of the Company between the end of the Financial Year and date of this
report.
Compliance with Secretarial Standards
Your Company has complied with Secretarial Standards issued by the
Institute of Company Secretaries of India on Board and General Meetings.
Adequacy of Internal Financial Controls
Your Company has an adequate and talented team of internal auditors
that oversees the internal financial processes, policies, and recommends robust internal
financial controls from time to time. These internal financial controls help to put in
place checks on the implementation of the internal financial controls, policies &
procedures that are adopted by the Company for ensuring an orderly and efficient conduct
of its business. These internal financial controls help in safeguarding assets, prevention
& detection of frauds and/ or errors, maintaining the accuracy and completeness of the
accounting & financial records. These controls help in the timely preparation of
transparent, complete and accurate financial information and statements as per the
accounting standards and principles laid down. The Audit Committee of your Company
evaluates the internal financial controls system periodically.
Awards and Accolades
The Company received the following awards and accolades during
the Financial Year:
FMCG ASIA AWARDS-Product launch of the Year (2022) Colgate
Visible White O2 launch in India & ESG initiative of the Year.
INDIASTAR 2022- The National Awards for Excellence in Packaging.
The Economic Times Employee Excellence Awards 2022- Recognized
as one of the "Excellent Employers of India".
Best Compliance Team 2022 - At the Annual Compliance Symposium
10/10 hosted by Legasis.
Jury Award for Best Tax Compliant - In the category H 500
cr to H 5000 cr turnover.
Palmolive - GRAZIA MOST LOVED BRANDS 2022.
The Economic Times - Best Organisations For Women 2023.
ET Digiplus Awards Gold - Best use of branded content
Smile Karo Aur Shuru Ho Jaao' campaign 2022 & Best use of Integrated
Strategy 2022.
EMVIES Bronze - Best Media Buying Team of the Year Sweat
Behind the Smile' 2022.
Indian Digital Awards Gold - Best use of Video Smile Karo
Aur Shuru Ho Jaao' campaign 2022.
Indian Digital Awards Silver - Best use of Content Marketing
Smile Karo Aur Shuru Ho Jaao' campaign 2022.
Indian Digital Awards Bronze - Best use of YouTube 2022.
ICSI National Awards - Certificate of Recognition for Excellence
in Corporate Governance.
Acknowledgements
Your Directors wish to convey their deepest appreciation for the
unstinted dedication, professionalism, commitment and resilience displayed by the
Company's employees at all levels and business partners, customers, vendors etc. Your
Directors also wish to express their gratitude towards the Shareholders for their
continued trust, support and confidence.
|
|
For Colgate-Palmolive (India) Limited |
|
Prabha Narasimhan |
M. S. Jacob |
|
Managing Director & |
Whole-time Director & |
Place: Mumbai |
Chief Executive Officer |
Chief Financial Officer |
Date: May 12, 2023 |
(DIN : 08822860) |
(DIN : 07645510) |
|