Procter & Gamble Health Limited

Auditor’s report (CARO 2020)

Auditor’s assessment Clean. Auditor: HARIBHAKTI & Co. LLP. Fiscal year FY24-25.

Related-party transactions

Assessment Notable. Disclosed volume of ₹248 Cr across 26 related parties. Fiscal year FY24-25.

• Material royalty paid to ultimate holding company: Royalty of ₹18.30 Cr paid to The Procter & Gamble Company, USA (ultimate holding company) for nine months FY25, representing a significant recurring outflow; annualised this is ~₹24 Cr vs ₹22.28 Cr in full FY24.
• Material intragroup expense cross-charges with fellow subsidiaries: Total expenses cross-charged to/from fellow subsidiaries amounted to ₹27.41 Cr for nine months FY25 (FY24: ₹29.14 Cr), primarily with P&G Hygiene & Health Care Ltd (₹11.60 Cr) and P&G Home Products Pvt Ltd (₹11.89 Cr); while commercially ty
• Significant receivable from fellow subsidiary P&G Austria: Outstanding receivable from P&G Health Austria GmbH & Co. OG stood at ₹17.46 Cr at March 31, 2025, a sharp increase from ₹5.32 Cr at June 30, 2024, driven by product sales of ₹21.65 Cr during the nine-month period; the concentration in a si

Contingent liabilities

Assessment Concerning. Total disclosed: ₹182 Cr (33.9% of net worth). Fiscal year FY24-25.

• Income tax matters under appeal, ₹115.75 Cr vs ₹94.46 Cr prior year
• Excise duty, GST, Service tax and custom duty matters, ₹45.27 Cr vs ₹51.53 Cr prior year
• NPPA demand for Polybion 100ml overcharging Jan 2006–Jun 2009; provision ₹5.80 Cr held; writ petition pending before Delhi High Court; fresh demand ₹33.07 Cr (₹11.68 Cr overcharge + ₹21.38 Cr interest

Corporate governance

Board of 6 directors, 50% independent. Chair: S. Madhavan. Chair and CEO roles are separated. Statutory auditor: HARIBHAKTI & Co. LLP. Fiscal year FY24-25.