PGHH_AR_2020

Annual Report 2019-20 74 Procter & Gamble Hygiene and Health Care Limited (i) a) The Company has m aintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification are not material and have been properly dealt with in the books of account. We were not in a position to physically attend the fixed assets verification scheduled for the year-end due to restrictions on account of health, travel and safety concerns following the nationwide lockdown imposed by the Government of India in view of the COVID-19 pandemic. Consequently, in the absence of physical attendance at the fixed assets verification, we have conducted alternative procedures and relied on other internal controls for drawing comfort on the existence of fixed assets as reported in the financial statements as at the year-end. c) According tothe informationandexplanations given to us, the title deeds, comprising all the immovable properties of buildings, other than self-constructed buildings, are held in the name of the Company. In respect of immovable properties of land that have been taken on lease and disclosed as non-current / current assets in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement. (ii) The inventory has been physically verified by the Management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on verification between the physical stocks and the book records were not material. We were not in a position to physically attend the inventory verification scheduled for the year-end due to restrictions on account of health, travel and safety concerns following the nationwide lockdown imposed by the Government of India in view of the COVID-19 pandemic. Consequently, in the absence of physical attendance at the inventory verification, we have conducted Annexure A to the Independent Auditor’s Report (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ in our Independent Auditor’s Report to the Members of the Company on the Ind-AS financial statements for the year ended June 30, 2020) alternative procedures and relied on other internal controls for drawing comfort on the inventory as reported in the financial statements as at the year-end. iii. In our opinion and according to the information and explanations given to us, the Company has granted a loan to one company covered in the Register maintained under Section 189 of the Act. a. In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the company listed in the Register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company. b. In the case of the loan granted to the company listed in the Register maintained under Section 189 of the Act, the borrower has been regular in the repayment of the principal and payment of interest. c. There are no overdue amounts in respect of loan granted to company listed in the Register maintained under Section 189 of the Act. (iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to investments made, guarantees given and securities provided. (v) According to the information and explanations given to us, the Company has not accepted deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 of the Act and the rules framed thereunder apply. Accordingly, paragraph (v) of the Order is not applicable to the Company. (vi) The maintenance of cost records has been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 in respect of specified products of the Company. For such products we have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 as amended and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. (vii) According to the information and explanations given to us and records of the Company examined by us, in our opinion: